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Cotton prices rise above MSP levels on strong demand Cotton prices have been firming up globally and futures on the ICE market have gained by around 15 per cent since the first week of MarchCotton Corporation of India (CCI) has hiked the floor price for the 2025-26 crop by ₹1,300 per candy on Monday, inline with the global prices and strong domestic demand.Including Monday’s revision, the total price increase carried out by CCI is ₹3,200 per candy of 356 kg since early March for the 2025-26 crop.Cotton prices have been firming up globally and futures on the ICE market have gained by around 15 per cent since the first week of March. Cotton futures for May delivery crossed 70.12 cents per pound, while the July’ delivery hovered around 73.28 cents.More rise likelyPrices of raw cotton have firmed up, though most of the 2025-26 crop has already arrived into the market. Raw cotton (kapas) prices traded above the minimum support price (MSP) of ₹8,110 per quintal in the range of ₹8,400-8,700l in some markets such as Raichur and Adoni, and also in parts of Maharashtra and Gujarat.In Raichur, the raw cotton prices ranged around ₹8,500-8,600, while in Adoni it was ₹8,500-8,700. “Kapas prices have finally moved above the MSP levels after ruling below the support price for most part of the marketing season. After today’s price increase, the kapas prices may go up further to ₹8,800 levels encouraging farmers to plant more in the upcoming kharif season,” said Ramanuj Das Boob, a sourcing agent in Raichur.Despite the price increase, CCI cotton has been attracting buying interest from traders and millers. On Monday CCI sold close to 3 lakh bales. For some good quality cotton, buyers have even paid premium, sources said.read more :- Cotton sowing intensifies due to favorable weather, heat wave alert in Rajasthan

Favorable Weather Boosts Cotton Sowing Across India; Heatwave Alert in RajasthanAccording to the latest 24-hour forecast issued by the India Meteorological Department (IMD), weather conditions across India’s major cotton-growing belts are expected to remain largely favorable for sowing and field preparation, with dry weather dominating central and northwestern regions.Central India (Madhya Pradesh, Vidarbha, Chhattisgarh): Predominantly dry weather with rising temperatures will support land preparation and early sowing activities. Soil conditions remain workable and favorable.Northwest India (Rajasthan, Punjab, Haryana): Dry conditions will continue across the region. However, heatwave conditions in parts of Rajasthan may accelerate soil moisture loss, making irrigation management important.South India (Telangana, Andhra Pradesh, Karnataka, Tamil Nadu): Isolated light rainfall and thunderstorms are expected. While not widespread, these may cause short-term, localized disruptions to fieldwork.East & Northeast India (Assam, Meghalaya, West Bengal, Odisha): Light to moderate rainfall is likely, with occasional heavier spells in the Northeast. These areas are less significant for cotton but indicate active moisture conditions.Overall: Weather remains largely favorable for cotton sowing across key regions, with dry conditions aiding progress. Localized rain in the south and heat stress in Rajasthan are the main factors to watch.read more :- Cotton acreage is likely to increase in 2026 due to inflation and El Niño.

Rising Prices and El Niño Forecast Likely to Lift India’s Cotton Acreage in 2026India’s cotton acreage is expected to expand significantly in the 2026 kharif season, driven by a recovery in domestic prices, improving global demand, and the likelihood of an El Niño-induced weak monsoon. Industry stakeholders estimate that the area under cotton cultivation could rise by 10–20%, reversing last year’s decline when farmers shifted to alternative crops like pulses and maize.Sowing preparations have already begun in the northern states of Punjab, Haryana, and Rajasthan, with planting expected to commence shortly. According to industry experts, better price realization—well above the Minimum Support Price (MSP) of ₹8,100 per quintal—has encouraged farmers. If the MSP increases further to around ₹8,600, cotton could become even more attractive. Additionally, cotton’s relatively low water requirement makes it a preferred choice during years of deficient rainfall, a likely scenario under El Niño conditions.Farmers in Maharashtra have also reported improved yields after adopting HTBT seeds, with production projected to rise sharply. This combination of higher yields and better prices is expected to further boost farmer confidence.Despite the positive outlook, overall cotton output in 2025–26 declined slightly, reflecting reduced acreage. However, 2026 may mark a turning point. Rising crude oil prices are increasing the cost of synthetic fibres, potentially restoring cotton’s competitiveness in the textile sector. This shift could benefit millions of cotton farmers and revive the broader cotton value chain.Globally, the trend contrasts with India’s outlook. Major producers such as the US and Australia are expected to reduce cotton acreage due to rising cultivation costs and lower profitability. Estimates suggest a modest decline in US acreage and reduced output in Australia due to water constraints.While favourable prices and weather dynamics support expansion, experts stress that policy reforms and technological advancements will be crucial to sustaining long-term growth in India’s cotton sector.read more :- The Rupee fell by 1.36 paise to close at 94.83 per dollar.

On Monday, the Indian Rupee fell by 1.36 paise to close at 94.83 per dollar, while it had opened at 93.47 in the morning.At market close, the Sensex dropped 1,635.67 points, or 2.22 percent, to settle at 71,947.55, and the Nifty fell 488.20 points, or 2.14 percent, to close at 22,331.40. Gains were recorded in approximately 837 stocks, 3,419 stocks declined, and 138 stocks remained unchanged.READ MORE :- Shrimp and Textile Exports Hit by Sluggish US Demand and Policy Uncertainty

Tariff cuts fail to revive US demand for Indian export; Policy uncertainty, Section 301 probe delay recovery in shrimp, textilesPune | Kolkata: Demand from the United States for Indian exports remains subdued despite recent tariff reductions, as policy uncertainty and geopolitical tensions continue to dampen consumer sentiment, according to industry executives.Exports of key sectors such as shrimp and textiles have yet to recover, weighed down by excess inventories accumulated during the earlier 50% tariff regime and the ongoing Section 301 investigations. Shrimp exports to the US declined 15% year-on-year during April–December, while textile shipments dropped 16% over the same period.Following the US Supreme Court’s rejection of former President Donald Trump’s import tariffs, the United States Trade Representative (USTR) initiated Section 301 probes to assess whether countries are maintaining “structural excess capacity” through subsidies, suppressed wages, or other trade-distorting measures.Industry leaders caution that these investigations could slow the recovery of sectors heavily dependent on US markets.The textile industry, while encouraged by the revised tariff structure, remains wary of the probe’s potential impact. Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industries (CITI), said the sector is closely monitoring developments, given their implications for market access in the US.She added that recent geopolitical tensions, particularly in West Asia, along with evolving US trade policies, have contributed to cautious—if not bearish—market sentiment. This may limit the pace of recovery and reduce the full benefits of tariff rationalisation.Shrimp exporters are already feeling the strain, with farm-gate prices falling 10–15% over the past three weeks. Exporters note that US buyers, especially those in regions like Boston who typically prefer long-term contracts, are hesitant to commit.According to Pawan Kumar G of the All India Seafood Exporters’ Association, many US buyers are still holding high-cost inventories purchased when tariffs were at 50%.In response to concerns about excess capacity, India’s commerce ministry has gathered detailed data from affected industries—including installed capacity, global value chain integration, policy support, and employment—to demonstrate that the domestic textile sector does not contribute to global market distortions.read more :- Textile crisis: 85% weavers in favor of production cut

85% weavers favour production cut amid textile crisis: SurveySurat: An online survey by the Federation of Gujarat Weavers Welfare Association (FOGWWA) has revealed deep concern among textile weaving unit owners, with 85% of respondents favouring a cut in production amid the ongoing industry crisis.The survey received 2,800 responses from weaving unit owners, association leaders and cluster representatives. It aimed to gauge industry sentiment and identify measures needed to address the current downturn.Participants were asked whether a meeting should be convened to discuss the crisis, and whether production should be reduced — with options ranging from two to 30 days. They were also asked to assess the impact on output and suggest corrective measures.According to the findings, the key factors driving the crisis are a sharp rise in yarn prices, weak demand and labour-related issues."The major reasons are higher yarn costs, low demand for textiles and worker-related problems. Workers are also complaining about cooking gas shortages and may return to their native places if the situation does not improve," said Ashok Jirawala, president of FOGWWA.Atul Patel, a weaver, said the industry is facing a double blow."Yarn prices have increased by nearly 50%, while demand for fabric remains low. We have no option but to cut production," he said.The survey indicates that a large section of the weaving industry sees production cuts as an immediate response to rising costs and subdued demand.Meeting of 35 weaving associations todayA meeting of 35 textile weaving associations has been convened in Varachha on Saturday to discuss the ongoing crisis in the sector. Representatives from across South Gujarat are expected to attend, with the primary agenda being to chalk out a strategy for reducing production amid weak demand. Industry representatives believe a coordinated production cut could help limit losses. "With demand remaining low, a collective decision to reduce or halt production will help stabilise prices and prevent further financial strain," said Ashok Jirawala, president of FOGWWA.read more:- The rupee opened 126 paise higher at 93.47.

The rupee opened 1.26 paise higher at 93.47/USD.The Indian rupee opened 1.26 paise higher at 93.47 per dollar on Monday, whereas it had closed at 94.73 on Friday.READ MORE :- State-wise CCI Cotton Sales (2025–26) 

State-wise CCI Cotton Sales Details – 2025-26 SeasonThe Cotton Corporation of India (CCI) raised its cotton prices by upto ₹200-₹500 per candy during this week . To date, CCI has sold approximately 38,58,000 cotton bales for the 2025-26 season. Sales are highly concentrated in a few major cotton-producing states, Maharashtra and Gujarat emerging as the leading contributors.

CCI Hikes Cotton Prices by ₹200–₹500 per Candy; Weekly Auctions Record Strong Sales of 8.93 Lakh BalesThe Cotton Corporation of India (CCI) increased its cotton prices by ₹200 to ₹500 per candy during the week of March 23 to March 27, 2026. Despite the price hike, the cotton auctions witnessed strong participation from both mills and traders, leading to robust sales of approximately 8,93,600 bales from the 2025–26 season.Day-wise Auction PerformanceMarch 23, 2026 (Monday):The week opened on a strong note with total sales of 1,53,700 bales. Mills purchased 51,700 bales, while traders led the buying with 1,02,000 bales.March 24, 2026 (Tuesday):Sales slightly declined to 63,300 bales. Mills bought 29,400 bales and traders acquired 33,900 bales.March 25, 2026 (Wednesday):Mid-week activity improved, with total sales reaching 1,69,600 bales. Mills purchased 52,500 bales, while traders accounted for 1,17,100 bales.March 26, 2026 (Thursday):CCI sold 1,66,900 bales during the session. Mills bought 57,200 bales, and traders purchased 1,09,700 bales, indicating sustained demand.March 27, 2026 (Friday):The week ended on a strong high, recording the highest single-day sales of 3,40,100 bales. Mills purchased 1,36,900 bales, while traders dominated with 2,03,200 bales.Cumulative Sales Update2025–26 season sales: 38,58,000 bales2024–25 season sales: 98,85,100 bales

Cotton Prices Firm Up as Demand Rises Amid Weak Rupee and Strong Global TrendsCotton prices in India have continued to strengthen, supported by rising demand from spinning mills and trade participants. Domestic prices are also tracking the upward global trend, while the weakening of the rupee against the US dollar is making imports costlier and supporting local price gains.On Friday, the Cotton Corporation of India (CCI), the country’s largest cotton stockholder, increased prices of the natural fibre by ₹300 per candy (356 kg). With this revision, CCI has raised prices by a total of around ₹1,900 per candy since the beginning of the month, reflecting sustained upward momentum in the market.A senior official from Cotton Corporation of India noted that the price revision is aligned with global market trends, adding that demand for both cotton and yarn remains strong. The official also highlighted that around 39 lakh bales (170 kg each) have already been sold in March out of a total procurement of 1.05 crore bales, indicating robust market activity.ICE Futures Rally Over 14%Cotton futures on the Intercontinental Exchange have risen by more than 14% since early March. Prices for May 2026 delivery are trading above 69 cents per pound, while July contracts are hovering above 71 cents.According to industry experts, the combined effect of a weakening rupee and rising global futures prices is expected to keep upward pressure on high-quality cotton prices in the coming days.Cotton Association of India former president Atul Ganatra said that the current trend suggests further price firmness ahead if currency depreciation and global futures continue to rise.Stronger Export Demand from AsiaMarket participants also noted improving demand for Indian cotton yarn from countries such as China, Bangladesh, and Vietnam, as global supply chains remain disrupted due to ongoing geopolitical tensions.Traders said that a weaker rupee is also making Indian cotton more attractive to international buyers, further supporting demand from both mills and multinational trading firms.read more:- Cotton yarn prices increased in South India, demand remained weak

Cotton yarn prices in South India continued to edge higher even as overall demand remained subdued.Industry experts noted that mills have been increasing prices, supported by stronger returns from export markets. However, domestic demand from end-use industries and stockists stayed muted during the final week of the 2025–26 fiscal year.According to traders, buyers with immediate requirements are paying higher rates due to limited options in the market. Despite the weak demand scenario, mills have been able to push prices up modestly.Meanwhile, cotton prices in Gujarat remained largely steady, even after the Cotton Corporation of India (CCI) announced a price increase.read more :- The rupee closed 56 paise lower at 94.73 against the dollar.