CCI Resumes Cotton Sales; Cuts Prices by ₹2,300 Per Candy
The Cotton Corporation of India (CCI) on Friday resumed the sale of cotton procured during the 2025-26 season. In light of the softening prices in the global market, the organization also reduced its cotton selling price by ₹2,300 per candy (356 kg). Despite this move, market response remained below expectations, with buying activity observed only at limited levels.
According to trade sources, even after the price reduction, the CCI managed to sell only about 1,200 bales of cotton on Friday. Of this quantity, approximately 800 bales were purchased by spinning mills, while the remainder was acquired by traders and resellers. This marks the second instance in recent days that the CCI has lowered its prices; just last week, the organization had implemented a reduction of ₹700 per candy. Citing technical reasons, the CCI had temporarily suspended its sales on May 22.
Market experts believe that, despite the price cuts, buyers continue to maintain a cautious stance. According to Ramanuj Das Boob, a sourcing agent based in Raichur, a price imbalance persists even at current levels. Buyers are adopting a "wait-and-watch" strategy, while weak yarn prices are also impacting the purchasing capacity of the mills.
The recent softening in the global cotton market compelled the CCI to revise its pricing. ICE cotton futures—which had surged from early February to reach 88 cents per pound on May 11—have now retreated to hover around 76 cents per pound. Improved weather outlooks in the US and Brazil, coupled with a decline in crude oil prices, are considered the primary factors driving this market softness. Consequently, private resellers have been observed selling cotton at rates approximately ₹2,000 per candy lower than the CCI's prices.
The CCI procured approximately 10.5 million bales of cotton during the 2025-26 season, the majority of which has already been sold. It is estimated that the corporation currently holds a remaining stock of approximately 3.2 million bales. Meanwhile, the Central Government has increased the Minimum Support Price (MSP) for cotton by ₹557 per quintal for the 2026-27 marketing season. Consequently, the MSP has been fixed at ₹8,267 per quintal for medium-staple cotton and ₹8,667 per quintal for long-staple cotton. According to data from the Ministry of Agriculture and assessments by industry bodies, the area under cotton cultivation is expected to increase by approximately 7 percent during the upcoming Kharif season, driven by expectations of better prices.
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