News Capsule: Cotton production expected to decline: Cotton Corporation of India
25-Oct-2025 10:55 AM
News Capsule: Cotton production expected to decline: Cotton Corporation of India
★ According to CCI, India’s cotton production for the 2025-26 season is likely to decrease slightly to around 30 million bales, down from 31.24 million bales last year. The decline is attributed to heavy rainfall in several states—Haryana, Punjab, Telangana, Maharashtra, and Gujarat—causing crop damage and reduced yields.
★ The cotton cultivation area is expected to remain largely stable at around 11 million hectares. In recent years, pests like pink bollworm and climate changes had reduced cotton acreage, but further decline is not expected this year.
★ Cotton prices have remained weak in both domestic and global markets. In October, prices hit a four-year low. In 2024-25, cotton prices dropped to ₹53,000 per candy (356 kg), compared with ₹58,000 in 2023-24 and ₹62,000 in 2022-23.
★ The Minimum Support Price (MSP) for the 2025-26 season has been set at ₹7,710 per 100 kg (medium staple) and ₹8,110 per 100 kg (long staple), which is ₹589 higher than last year. This has made CCI’s purchase cost higher than the selling price.
★ India’s cotton exports fell to 1.8 million bales in 2024-25, down from 2.8 million bales the previous year. The decline was due to political uncertainty in Bangladesh and the suspension of exports via land routes.
★ Disputes with ginners have now been resolved, and procurement operations have begun in 8 out of 10 states.
★ Despite weak production, prices remained low due to government policies allowing cotton imports.
★ CCI will continue to sell purchased cotton as before, ensuring availability throughout the season.
★ If prices remain low, farmers may reduce cotton acreage in the upcoming Rabi and next Kharif season.