India Cotton Procurement To Reach Record Level
09-Sep-2025 01:33 PM
India Cotton Procurement To Reach Record Level
★ India’s cotton procurement is projected to touch a record 14 million bales in the upcoming marketing year 2025–26, nearly 40% higher than the current year. The surge is attributed to an increased Minimum Support Price (MSP) and import duty concessions, which are reducing the competitiveness of domestic cotton.
★ Although a decline in sowing area may impact production, government purchases through the Cotton Corporation of India (CCI) are set to rise sharply. At the same time, cheaper imports are expected to keep market prices under pressure.
★ According to the Agriculture Ministry, by August 29, 2025, the country’s cotton sowing area stood at 10.877 million hectares, down 2.62% from last year’s 11.139 million hectares. The five-year average sowing area is 12.95 million hectares. Cotton sowing in northern India begins in May, while in central India it continues until the third week of September.
★ The ministry estimates cotton production in 2025–26 at 30.692 million bales (170 kg each), a 5.8% decline compared with 2023–24. Meanwhile, the Cotton Association of India (CAI), in its August 2025 report, pegged production at 31.14 million bales.
★ Despite the expected decline in production, strong government procurement is likely, given current market conditions. This year, the MSP for medium-staple cotton has been increased by 8.27% to ₹7,710 per quintal.