Strong preparations underway to purchase cotton at MSP

23-Sep-2025 03:56 PM

New Delhi. Although national cotton sowing has declined by approximately 2.85 lakh hectares during the current Kharif season compared to last year, and the acreage has declined from 112.48 lakh hectares to 109.65 lakh hectares.

Despite the possibility of crop damage due to floods and rains in some areas, many industry and trade analysts believe that total domestic cotton production could be equal to or even slightly higher than the 2024-25 season, given the encouraging condition of the remaining crop.

Starting next month (October), a robust supply of new cotton will begin in all major cotton-producing states, putting pressure on prices.

Large imports of cheap cotton from abroad, duty-free, are ongoing and will continue until December 31, 2025. This could also weaken domestic cotton demand and prices.

The imposition of a heavy 50 percent tariff on Indian textile products in the United States has forced the domestic textile industry to reduce its costs and will therefore be less inclined to purchase cotton from farmers at higher prices.

The Central Government has significantly increased the Minimum Support Price (MSP) for cotton by Rs. 589 per quintal, with the support price for the medium-stitch category increasing from Rs. 7,121 per quintal to Rs. 8,110 per quintal.

Since the wholesale market price of cotton is likely to remain below the MSP during the peak supply season (October-December), the government agency, the Cotton Corporation of India (CCI), has prepared for massive procurement to ensure that farmers are not forced to sell their produce at throwaway prices.