Cotton Prices Cross ₹60,000/Candy, Track Global Rally
Cotton prices in the domestic market have strengthened further, crossing the ₹60,000 per candy (356 kg) mark for the first time this season, driven by firm global cues and steady demand.
Domestic prices are closely tracking global futures on the Intercontinental Exchange (ICE), where July contracts rose above 73 cents per pound on Friday — the highest level since June 2024.
On the domestic front, the Cotton Corporation of India (CCI) raised its benchmark prices by ₹300 per candy on Friday. Over the past two weeks, prices have increased by around ₹1,400 per candy, and by nearly ₹4,500 over the past few months.
Global Supply-Demand Outlook
According to the United States Department of Agriculture (USDA), global cotton production is projected to rise by nearly 900,000 bales to 121.9 million bales, supported by higher output in China, India, and Pakistan, offsetting a decline in Argentina.
Global consumption is also expected to grow by about 600,000 bales to 119.1 million bales, with stronger demand from China and India compensating for weaker demand in Bangladesh and Vietnam.
Prices Above MSP, But Demand Mixed
Cotton prices in several domestic markets are trading above the Minimum Support Price (MSP). In Raichur, raw cotton (kapas) prices touched ₹9,000 per quintal on Friday.
However, industry participants indicate that while cotton prices are firm, yarn demand is facing resistance at higher levels.
Market sources note that mills are cautious in making fresh purchases in the cash market, with buying largely limited to traders offering extended payment terms. Expectations of a better crop outlook are also capping aggressive buying.
Yarn Prices Rise on Export Demand
The uptrend in cotton prices is also reflecting in yarn markets. Prices of 30 CCH (combed hosiery) yarn have increased by ₹55–60 per kg in recent weeks, rising from around ₹235 per kg to nearly ₹295 per kg, supported by demand from Chinese buyers and multinational companies.
Arrivals Update
As per trade estimates, total cotton arrivals up to March-end are around 294 lakh bales (170 kg each). Maharashtra leads with 95.25 lakh bales, followed by Gujarat at 59 lakh bales. Telangana has recorded arrivals of 46.80 lakh bales, while Karnataka stands at around 25 lakh bales.
Overall, while global cues are keeping prices firm, the domestic market may see some stability ahead amid cautious mill demand and expectations of improved crop output.
