Floods and Rains Disrupt Cotton Market Equations

30-Oct-2025 08:01 PM

Hyderabad. Conditions are not favorable for the cotton sector this year. First, the sown area decreased by approximately 300,000 hectares, and then heavy monsoon rains, waterlogging, strong winds, and devastating floods damaged the crop in many areas.

This has raised the possibility of not only a decline in cotton yields but also of product quality. Now, Cyclone Monta is also affecting the cotton crop in Andhra Pradesh and Telangana. Previously, floods and rains damaged crops in parts of Maharashtra, Punjab, Haryana, Rajasthan, and Gujarat.

While the remaining cotton crop in the western and northern states is reported to be in good condition, suggesting a significant decline in gross national production, the situation in the southern states is less satisfactory.

Recent rains have significantly increased the moisture content of cotton, which could pose significant difficulties for farmers in selling their produce.

Cotton prices in wholesale markets are already trading well below the minimum support price, forcing the government agency, the Cotton Corporation of India (CCI), to purchase cotton in large quantities.

Last season, the corporation purchased approximately 10 million bales (each bale weighing 170 kg). Floods and rains are expected to disrupt the cotton market. Large quantities of cheap cotton are being imported from abroad, further pressuring domestic market prices.