Global Cotton Prices Recover Amid Fears of Declining Production in India

01-Jul-2026 04:25 PM

New York: Due to the impact of El Niño and a weak monsoon, India is witnessing not only a sharp decline in the area sown with cotton this year but also serious concerns regarding the progress of the planted crop.

Experts state that if this situation persists, domestic cotton production could drop significantly, necessitating increased imports to meet demand and requirements.

Cotton futures prices on the New York-based Intercontinental Exchange (ICE) saw a slight recovery recently, partly driven by concerns over the crop in India.

However, certain factors prevented a sharp surge in prices. Meanwhile, the rise in the cotton market remained limited because the production area in the US turned out to be slightly larger than expected.

The cotton futures contract price for the most active delivery month, December, closed at 76.80 cents per pound on the ICE, marking an increase of 0.35 cents.

Despite this rise, the contract price fell by 279 points over the course of June. In India, the cotton cultivation area reached only 29.66 lakh hectares.