News Capsule: Cotton Sowing Expected to Rise on Higher MSP and Lower Water Requirement
09-Jun-2026 10:51 AM
News Capsule: Cotton Sowing Expected to Rise on Higher MSP and Lower Water Requirement
★ India’s cotton acreage in the 2026-27 kharif season is expected to increase by up to 15%, crossing 13 million hectares. Gujarat has made a strong start, with cotton planted on 93,499 hectares as of June 8, nearly three times the area covered during the same period last year.
★ Cotton acreage is projected to rise by around 15% in Central India and 10-20% in South India, while Rajasthan is also expected to see a significant increase. The key drivers behind this expansion are the ₹557 per quintal increase in the cotton MSP, continued government procurement support, and concerns over below-normal rainfall.
★ Cotton requires less water than competing crops such as groundnut, making it a relatively safer choice for farmers in a potential El Niño year.
★ While the production outlook appears positive, demand remains weak. The Cotton Corporation of India (CCI) recently reduced its selling price by ₹2,500 per candy to boost sales. Weak yarn and textile demand has limited mill purchases, which could keep cotton prices under pressure in the near term.
★ Overall, higher acreage and supportive MSP are positive for the cotton market, but sluggish yarn and textile demand may restrict any major upside in prices in the coming months.