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Cotton prices near Rs 9,000, yet farmers and traders face crisis

Cotton prices are approaching Rs 9,000, but farmers are still in trouble and traders also appear to be under pressure.In Jalgaon, cotton prices have been continuously increasing for the last few weeks and have reached Rs 8,500 to Rs 9,000 per quintal. In some places, even higher prices are being received for good quality cotton. At first glance, this seems to be a news of relief for the farmers, because the prices are above the minimum support price, but the ground reality is different and worrying.A large quantity of cotton had come into the market at the beginning of the season, due to which the prices at that time remained between Rs 7,000 and 7,500 per quintal. Now the stock in the market has reduced, while the demand from mills and traders remains constant. Due to this imbalance of demand and supply, prices are rising.The competition for purchasing among traders has increased and tough competition is being seen in auctions at many places. Experts believe that the prevailing domestic and international market conditions, production shortfall, export demand and growing needs of the yarn industry—all these factors may push the prices higher further.But the real question is how much benefit the farmers are getting from this rising price. The reality is that most of the farmers had already sold their crops at low prices. Due to financial pressure, compulsion to repay loans, household expenses and lack of storage, they were not able to hold their produce for long.Now that prices have increased, farmers have no cotton left to sell. In such a situation, the direct benefit of this boom is being given to the traders, middlemen and stockists, who had already stored the cotton and are now earning profits by selling it at higher prices.This situation exposes the fundamental flaws of the agricultural system. On one hand the market is booming, on the other hand farmers are deprived of it. The hard-working farmer faces losses, while profits are limited to the middle players in the market.To solve this problem, it is very important to provide better storage facilities to the farmers. Modern warehouses and cold storages should be developed in villages, so that farmers can preserve their produce till the right time.Along with this, loans should be easily available to farmers at low interest rates, so that they are not forced to sell their crops immediately. There is also a need to increase market transparency, strengthen digital platforms like e-NAM and empower farmer producer companies. With this, farmers can get better prices for their produce by directly connecting with the market.read more :- The rupee opened 4 paise higher at 93.06.

Positive Signs for the Upcoming Cotton Season

Will the coming season be good for cotton?We have studied the possible impact of El Nino on the ongoing war in the Gulf region and the upcoming monsoon, to understand how these conditions will impact cotton cultivation in the country, especially Maharashtra, and what farmers should pay attention to.It has been a month since the US-Israel conflict against Iran. There are many uncertainties about this war—how long it will last, whether it will expand in scope, and whether it could escalate into a major global crisis. Even if there is a temporary pause in the war, it may take a long time for the situation to return to normal.Given these international circumstances, it becomes important to assess the future of cotton farmers, farm laborers and related industries in India—especially in key states like Maharashtra.Cotton is cultivated in about 16% of the agricultural area in India, sowing of which starts from April. About 75% of the country's cotton area is located in central India—Maharashtra, Gujarat, Madhya Pradesh, Telangana and Karnataka—where it is cultivated in June with the monsoon. Maharashtra alone has about 33% cotton area, which supports the livelihood of lakhs of farmers.Three main factors will be important for cotton cultivation this season:1. Monsoon and rainfall conditionsCurrently, El Nino situation is occurring in the Pacific Ocean. It is estimated that its impact will increase between June and August, due to which the monsoon may be weaker than normal or below average. This can have a direct impact on cotton production.2. Availability of fertilizerIndia's import supply may be affected due to war in the Gulf region. About 85% of India's fertilizer and 20% of crude oil supply comes through the Strait of Hormuz. If there is a disruption here, there could be a shortage of fertilizers like urea and DAP, which will affect both farming costs and production.3. Impact on crude oil and textile industryThe cost of synthetic fibers (such as polyester and nylon) may increase as crude oil supplies are affected. This is likely to increase demand for natural fibers—such as cotton. Consumption of natural textiles is already high in India, and this trend is likely to further strengthen.read more :- CCI Steps Up Cotton Procurement; Private Sector Also Active

CCI Steps Up Cotton Procurement; Private Sector Also Active

CCI purchased 11.05 lakh quintals of cotton, private sector purchased 9.38 lakh quintalsRural Economy: A total of 20.43 lakh quintals of cotton procurement was recorded in Parbhani and Hingoli districts till March 27. In this, Cotton Corporation of India (CCI) purchased 11.05 lakh quintals, while the private sector purchased 9.38 lakh quintals of cotton. At present, softening of the initial prices of cotton is being seen in the market.Farmers preferred CCI at the beginning of the 2025-26 procurement season as prices in the open market were below the Minimum Support Price (MSP). 88,377 farmers registered for sale at CCI centers through ‘Cotton Kisan Mobile App’ at 14 centers in both the districts.However, CCI buying slowed down after open market prices surged in January. Many farmers had withheld cotton in the hope of better prices, thinking prices could reach Rs 10,000 per quintal. But due to fall in prices in February, farmers could not get the expected benefits.Due to availability of irrigation, many farmers took Fardad (Late Harvest) crop, harvesting of which is still going on. Its arrival continues in the market and Fardad cotton is getting a price of around Rs 6,000 per quintal.Demonstration of Parbhani districtA total of 18.21 lakh quintals of cotton was purchased in Parbhani district. 74,932 farmers registered under 10 agricultural produce market committees of Parbhani, Bori, Jintur, Selu, Pathri, Sonpeth, Gangakhed, Palam and Tadkalas to sell cotton to CCI.CCI purchased 9,63,907 quintals of cotton through 46 ginning factories, where the price per quintal ranged from Rs 7,710 to Rs 8,060. At the same time, private traders purchased 8,57,533 quintals of cotton through 26 ginning factories, the average price of which was Rs 7,000 to 8,365 per quintal.Overall, CCI and private sector together procured 18,21,440 quintals of cotton in Parbhani district.read more :- Exporters' Demand: Call for Removal of Duty on Cotton Imports

Exporters' Demand: Call for Removal of Duty on Cotton Imports

Textile exporters appealed to the government to waive cotton import dutyPune: Textile and garment exporters have demanded the government to temporarily remove the 11% import duty on cotton. They say the recent rise in domestic prices is squeezing their margins and weakening competition in the international market.Local cotton prices have increased by 7-8% last month. The main reason for this is the surge in demand, because due to the high prices of crude oil, synthetic fibers have become expensive and mills are again returning to natural fibres.The industry has sought temporary relief like last year, when the government had reduced supply pressure by removing cotton import duty between August and December. According to Cotton Association of India data, cotton prices have increased by 11-12% in the last one month. During this period, an increase of 12-15% has been recorded in the international market also.Exporters say India has to depend on imports for long-staple and contamination-free cotton to meet the demand of foreign buyers. About 60-70% of the textile value chain is based on cotton, hence the industry has appealed to the Central Government to provide exemption in import duty for 3 to 6 months.According to industry experts, global events have led to a surge in crude oil prices, making many raw materials used in the textile sector costlier by 10% to 60%. Besides, the supply chain has also been affected. Exporters say competing countries like Vietnam and Bangladesh get duty-free raw materials, giving them a price advantage.read more :- CCI hikes cotton prices by ₹2,000, weekly sales cross 6.76 lakh bales

Telangana will become textile capital of South Asia: Revanth Reddy

Telangana to become textile capital of South Asia, says Revanth ReddyHyderabad: Chief Minister A. Revanth Reddy on Friday reiterated the State’s ambition to transform Telangana into the Textile Capital of South Asia, with a strong emphasis on developing eco-friendly textile hubs.Speaking at the Asian Textile Conference (ATEXCON 2026) in Hyderabad, he outlined a long-term vision to position the State as a leading global textile destination by 2047. He assured investors of comprehensive support, including world-class infrastructure, land availability, reliable power, water supply, and attractive incentives.Highlighting the region’s rich textile heritage, the Chief Minister referred to renowned traditional weaves such as Pochampally Ikat, Gadwal sarees, Warangal durries, and Narayanpet sarees. He noted that textiles are not merely an industry but a vital source of livelihood for thousands of weaving communities across the State.Emphasizing Telangana’s strengths, he pointed out that it is among India’s largest cotton-producing regions, with globally recognized quality. He added that the State combines both skilled manpower and strong policy intent to emerge as a top textile hub.Reddy also highlighted key initiatives such as the Kakatiya Mega Textile Park, along with multiple apparel parks, as part of efforts to strengthen the textile ecosystem. He further noted Telangana’s leadership across diverse sectors, including technology, pharmaceuticals, aerospace, defence, manufacturing, and energy.read  more :- Brazil cotton prices see sharpest rise since August 2022

Cotton Crosses 8,500—No Benefit to Farmers

Cotton prices increased beyond 8,500 due to war, but farmers are not getting benefitsMaharashtra (Selu): Due to the US-Iran war, the demand for cotton has increased globally, due to which its prices have increased. The price of one Khandi (two bales) has increased from Rs 53 thousand to Rs 58 thousand. On Wednesday, private traders in the Agricultural Produce Market Committee premises gave prices ranging from Rs 8,400 to Rs 8,500 per quintal for cotton.However, farmers are not getting much benefit from this increased price, because at the district and taluka level, farmers have almost run out of cotton to sell. This year, due to heavy rains in the Kharif season, production reduced and due to low prices in the initial phase, farmers sold only limited quantities of cotton. The arrival of cotton in the market has stopped for the last one month, due to which the season is almost over.Earlier, the price of cotton by private traders was up to Rs 7,200 per quintal, while the Cotton Corporation of India (CCI) had also stopped its purchases. Due to shortage of cotton in the market, production in ginning mills has also come to a standstill for the last one month.According to Ritesh Toshniwal of Tirupati Cotton Industries and Oil Mill, Valur, "Due to the war, the supply of crude oil has been affected and the prices have increased. This has increased the demand for cotton as an alternative to synthetic thread. Now the price of cotton has reached eight and a half thousand rupees, but the farmers do not have the goods to sell. The little that is coming, the traders are immediately buying it."This year, under the policy of the Central Government, 40 lakh bales of cotton were imported into the country, whereas normally this figure is 10 lakh bales. Before the increase in imports, the price of cotton was Rs 55-56 thousand per khandi, which came down to Rs 52-53 thousand. Now due to the US-Iran war, there has been a surge in demand and prices have started rising again.Procurement was done by CCI at a support price of Rs 8,100 per quintal, but cotton with higher moisture content was taken at a lower price. Traders had given prices ranging from Rs 7,200 to Rs 7,700 depending on the quality. Now mainly traders are getting the benefit of increased prices, because farmers have no stock left.read more :- Yarn prices rise by ₹12/kg, Tiruppur exporters under pressure

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