Pressure on Cotton Prices Likely Due to New Crop Arrivals

Mumbai. Cotton prices are likely to face downward pressure due to softening rates in the international market, increased supply and availability of new stock in the domestic sector, and subdued demand. Although the cotton sowing area has decreased by approximately one lakh hectares compared to last year and crop damage due to natural calamities has been reported in some regions, a sharp rise in prices remains unlikely as long as the peak harvesting season continues. Permission has already been granted to continue duty-free cotton imports until October 31, 2026.

Cotton futures prices for December delivery on the New York-based Intercontinental Exchange (ICE) have been trending lower over the past few weeks. Futures prices, which had peaked at 93 cents per pound in late August, have now dropped to around 80 cents per pound. Consequently, domestic cotton prices have also fallen from approximately ₹70,000 per candy (356 kg) to ₹64,500–₹65,000 per candy.

The auction price for old cotton stocks held by the government agency—the Cotton Corporation of India (CCI)—has also softened by ₹1,200 per candy over the last two days; this stock was procured during the 2025-26 season.

Cotton prices are also declining due to the impact of falling cottonseed prices. Cottonseed rates have dropped by ₹300–₹400, settling at ₹4,600–₹4,700 per quintal. Harvesting of the new cotton crop and market arrivals are gradually gaining momentum in major producing states.