Government Procurement of Cotton to Continue

26-Dec-2025 09:16 PM

Nagpur. The deadline for duty-free import of cotton from abroad is about to expire, and if the government does not issue a notification to extend it, an 11 percent customs duty will be reimposed.

Due to low international market prices, a large quantity of cheap cotton is being imported into India. This is putting pressure on domestic cotton prices, and consequently, the government agency, the Cotton Corporation of India (CCI), is having to purchase large quantities of cotton from farmers.

The government agency has purchased approximately 50 lakh bales of cotton by December 15, 2025, during the current marketing season (October-September) of 2025-26, while the total arrival in the markets was recorded at 118 lakh bales (170 kg per bale).

By December 19, the corporation had purchased a total of 230.33 lakh quintals of cotton, including 93.87 lakh quintals in Telangana and 47.69 lakh quintals in Maharashtra. In addition, a significant quantity of cotton was also purchased from farmers at the Minimum Support Price (MSP) in states like Karnataka, Gujarat, Andhra Pradesh, Rajasthan, Haryana, Odisha, and Punjab.

Since the wholesale market price of cotton is below the MSP, government procurement will continue. The Minimum Support Price for cotton for the 2025-26 season has been increased to Rs. 7710 per quintal for medium-staple varieties and Rs. 8110 per quintal for long-staple varieties.

The corporation's intervention has somewhat curbed the downward trend in domestic cotton prices and created a more stable market environment, but government procurement will have to continue until the wholesale market price reaches the MSP.