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Cotton Prices Rise Over 8.5% in April Amid Lower Production Outlook

Cotton Becomes Expensive in April; Prices Jump 8.5%Prices of cotton have surged by more than 8.5% in April, driven by concerns over reduced production and rising demand from textile mills. The widely used Shankar-6 variety, primarily grown in Gujarat, has reached ₹60,500 per candy, marking a sharp increase compared to last month.According to the Committee on Cotton Production and Consumption, India’s cotton output for the current marketing season ending September 30 is estimated at around 291 lakh bales—about 0.42% lower than the 2024–25 season.(sis)At the same time, domestic consumption is on the rise. Textile mills are projected to use 312 lakh bales this season, up from 306 lakh bales last year, further tightening supply conditions.Industry leaders have raised concerns over the supply gap. Durai Palanisamy, Chairman of the Southern India Mills Association, emphasized the urgent need to review import duties on cotton, citing shortages that are impacting the textile sector, the country’s largest consumer of the fibre.Adding to the bullish sentiment, global cotton prices are also climbing. Nishanth Asher, Secretary of the Indian Cotton Federation, noted that cotton futures for July have increased significantly—from around 64.5 cents per pound in December 2025–January 2026 to nearly 79.8 cents. This marks a notable rise compared to the 64–70 cent range seen over the past three years.(sis)Globally, production is expected to fall short by 1.5 to 2.5 million bales from earlier estimates. Lower rainfall in key producing countries such as the United States and Brazil is likely to impact output, though projections remain tentative.Additionally, rising crude oil prices are influencing fibre economics. Polyester, which is derived from petrochemicals, has become more expensive amid geopolitical tensions, prompting a shift in demand toward cotton. Even marginal changes in demand are contributing to the upward pressure on prices.(sis)Overall, a combination of lower output, rising global prices, and increasing textile demand is supporting the current rally in cotton prices.Read More :- Textile Industry Seeks Duty-Free Cotton Imports Amid Price Surge

Cotton Price Surge: Textile Industry Demands Duty-Free Imports

Textile Industry Seeks Duty-Free Cotton Imports Amid Price SurgeIndia’s textile industry has urged the government to remove the 11% import duty on cotton as domestic prices continue to rise in line with global trends. Industry stakeholders believe that allowing duty-free imports is crucial to maintaining export competitiveness and stabilising the textile value chain.Cotton prices have increased sharply in recent weeks, putting pressure on the entire ecosystem, from spinning mills to garment exporters.(sis) Exporters, especially those operating under long-term contracts, are facing margin erosion as they have limited ability to pass on rising input costs.K. Selvaraju, Secretary General of the Southern India Mills Association (SIMA), stated that the steep rise in cotton prices is impacting all segments, with garment manufacturers being the most vulnerable due to their dependence on fabric inputs.(sis)The situation is further complicated by weak global demand, particularly due to geopolitical tensions in West Asia. While yarn exports have remained relatively stable, the broader textile export sector continues to face challenges.India’s cotton production is estimated at 290 lakh bales, falling short of the domestic demand of around 330 lakh bales. To bridge this gap, the industry has proposed duty-free imports from May to October, covering the lean supply period.(sis)Stakeholders maintain that this move will not harm farmers, as most cotton stocks are sold by March. With supply constraints and price volatility rising, the industry is calling for immediate government intervention to prevent further disruption.Read More :- The rupee opened at 94.21 down 10 paise.

Continuous rise in cotton prices intensifies pressure on the market.

Cotton prices continue to rise.The Shankar 6 variety, widely grown in Gujarat, reached ₹60,500 per candy on Tuesday (April 21), about 8.5% higher than a month ago.According to the Indian Cotton Production and Consumption Committee, the country's production in the current cotton season (ending on September 30) is estimated to be around 291 lakh bales, which is about 0.42% less than the 2024-25 season. On the other hand, domestic consumption is likely to increase to 312 lakh bales, compared to 306 lakh bales last year.South India Mills Association President Durai Palanisamy said that in view of the shortage of cotton in the country, it is necessary to immediately review the import duty, so that the pressure on the textile industry can be reduced.According to Indian Cotton Federation Secretary Nishant Asher, global cotton futures prices are also seeing a rise. Prices for July delivery rose from 64.5 cents a pound to about 79.8 cents. Over the past three years the range has typically been between 64–70 cents.Global production is also expected to be 1.5–2.5 million bales lower than earlier estimates. Production may be affected due to less rainfall in major producing countries like America and Brazil, although the situation is not completely clear yet.Additionally, rising crude oil prices are making polyester costlier, shifting some demand in the textile industry towards cotton, further supporting prices.read more :- Delay in Cotton-Soybean Insurance Payments; Farmers Concerned

Delay in Cotton-Soybean Insurance Payments; Farmers Concerned

Doubt over cotton and soybean crop insurance: Farmers worried over delay in payment, demand clarity before new seasonDespite suffering huge losses to the cotton crop in the last Kharif season, farmers have not yet received the insurance amount. Due to this, thousands of farmers are raising the question that when will they get cotton crop insurance and how much compensation will they receive.The farmers who got crop insurance in Akola district have not yet got complete relief. Especially in the case of soybean insurance, compensation has been sanctioned only to farmers of two revenue divisions—Kurum and Lakhpuri, due to which the rest of the farmers are feeling deprived.1,31,415 farmers of the district had got soybean crop insured, but after getting limited benefits, now the farmers are eyeing cotton crop insurance. However, no clear announcement has been made yet regarding cotton insurance, due to which there is confusion.In the last Kharif season, 30,030 farmers of the district had insured cotton crops in about 28,101 hectare area. If seen at the taluka level, 3,372 farmers in Telhara, 7,558 in Akot, 2,479 in Balapur, 1,436 in Patur, 7,890 in Akola, 3,426 in Barshitakli (rainfall zone) and 3,869 in Murtijapur had got insurance.Last year, there was widespread damage to the cotton crop due to heavy rains and floods during the monsoon. In such a situation, farmers hope that they will get appropriate compensation in the form of insurance.Now that there is less than one and a half months left for the beginning of the new Kharif season, farmers are facing financial crisis due to delay in the insurance amount. If there was timely payment, farmers could prepare for seeds, fertilizers and other agricultural operations.Farmers demand that cotton crop insurance should be announced as soon as possible and fair compensation should be given to all eligible farmers. After limited profits in soybean insurance, concerns about cotton insurance have increased further. In such a situation, the administration is expected to take quick decisions and provide relief to the farmers.read more :- CCI's Cotton Sales Accelerate Amid Strong Demand; Prices Rise 

CCI's Cotton Sales Accelerate Amid Strong Demand; Prices Rise

Amidst strong demand, CCI sold more than half of the cotton in 2025-26, prices continuously increasedDespite rising prices, state-run Cotton Corporation of India (CCI) has sold more than half of the cotton it purchased in the 2025-26 season due to strong demand from mills and traders.CCI procured 105 lakh bales (170 kg each) of cotton this season, up from 100.16 lakh bales last year. According to Chairman and Managing Director Lalit Kumar Gupta, more than 55 lakh bales of cotton had been sold till Monday. He said the steady offtake in the last two months reflects strong demand from mills and traders, even as global prices have risen.On Tuesday, CCI increased the selling price of cotton by ₹200 per candy (356 kg), taking the total increase this week to ₹800. Last week also the prices were increased by ₹1,500 per candy. Overall, prices have increased by more than ₹6,000 this season.Gupta said that from a low of around ₹55,000 per candy, the current prices have reached around ₹61,000 per candy. Despite this, he said CCI's prices are still the most competitive compared to the global market.International cotton prices have increased by more than 25 percent, while domestic prices have increased by 15-20 percent. Despite this, domestic rates are still 2-3 per cent lower than global prices, which are around ₹63,500-64,000 per candy.CCI's price revisions are in line with global market trends. International prices have registered an increase of about 30 percent since the beginning of March. Cotton futures on the Intercontinental Exchange (ICE) rose from about 62 cents a pound in early March to above 80 cents, hitting around 81 cents a pound for July delivery on Tuesday.Despite continuous price increases, CCI sales remain strong and its stock has come down to below 50 lakh bales. According to Gupta, demand from mills is still strong and yarn orders are booked for the next 3-4 months, hence mills will continue to procure as per their requirements.read more :- The rupee opened at 93.70 down 21 paise.

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