Heavy cotton buying at MSP continues across markets

17-Nov-2025 09:36 PM

Hyderabad. Although domestic cotton production is expected to decline this year due to reduced acreage and crop damage caused by natural disasters, the wholesale market price is currently trading below the government's support price due to several factors.

It is noteworthy that the Central Government has increased the Minimum Support Price (MSP) for cotton by ₹589 for the current marketing season of 2025-26 compared to 2024-25, setting it at ₹7,710 per quintal for medium-staple varieties and ₹8,110 per quintal for long-staple varieties, while the wholesale market price is significantly lower.

The government has already removed the 11% customs duty on cotton imports. Cotton prices are declining in the international market.

Consequently, India is importing large quantities of cotton from Australia, Brazil, the United States, and other countries.

According to the Cotton Association of India, a leading industry organization, India imported a significant amount of cotton, approximately 4.1 million bales, during the 2024-25 marketing season.

This is expected to increase by 10 percent from 4 million bales in the current 2025-26 marketing season (October-September) to 4.5 million bales. This has reduced the Indian textile industry's interest in purchasing domestic cotton.

The October rains not only damaged the cotton crop in some states but also increased the moisture content of the cotton bolls.

Furthermore, the impact of Cyclone Montha partially damaged the cotton crop in Telangana and Andhra Pradesh.

The weather has now cleared, and a good supply of cotton of normal to average quality has begun arriving at government procurement centers.

The government agency, the Cotton Corporation of India (CCI), has made adequate arrangements for cotton procurement in major producing states.