Signs of Increase in Cotton Acreage; Prices Surge by 25%
Amidst a sharp surge in cotton prices and growing apprehensions regarding production levels, the country's textile industry has expressed heightened concern. However, there is good news for farmers: the acreage under cotton cultivation is expected to expand in the upcoming season. According to the Cotton Association of India (CAI), the area dedicated to cotton cultivation could increase by approximately 7 percent in 2026. Improved market rates and an upward revision in the Minimum Support Price (MSP) are considered the primary drivers behind this trend.
Over the past two months, cotton prices have witnessed an increase of approximately 25 percent. Currently, the price for Shankar-6 (31 mm) cotton has reached ₹67,100 per candy—equivalent to roughly ₹18,869 per quintal—whereas prior to the onset of tensions between Iran and the U.S., its price stood at around ₹15,000 per quintal. International geopolitical conditions and global inflationary pressures have impacted the cotton market, the repercussions of which are now becoming evident within the textile industry as well.
The government has fixed the MSP for medium-staple cotton at ₹8,267 per quintal and for long-staple cotton at ₹8,667 per quintal. An increase of ₹557 per quintal has been implemented across both categories. The realization of remunerative prices has boosted farmers' incomes, encouraging them to cultivate cotton across a larger area in the upcoming season.
According to government estimates, cotton production in the current season is projected to stand at 292 lakh bales, while domestic demand could reach 328 lakh bales. Meanwhile, the CAI has projected a total production of 334 lakh bales for the 2025-26 season. Cotton imports are expected to reach 47 lakh bales, while exports are projected at 18 lakh bales.
According to the CAI, the cotton surplus for the current season could rise to 103.59 lakh bales, with the closing stock at the end of the season estimated at 85.59 lakh bales. To ascertain the actual situation, the CAI has decided to constitute a seven-member committee to conduct a survey through an independent agency and to reconcile stock figures.
read more :- Khandesh Cotton Output Seen Falling; Ginning Units Under Pressure
