Cotton Prices Surge in India Driven by Global Signals and Strong Demand
Cotton prices in India continue to rise, fueled by strength in global markets and growing domestic demand. On Monday, citing limited stocks and robust buying by spinning mills, the Cotton Corporation of India (CCI) raised cotton prices by ₹700 per candy (356 kg). Over the past two weeks, CCI prices have seen a cumulative increase of approximately ₹1,400 per candy.
According to Ramanuj Das Boob, a sourcing agent based in Raichur, sowing has been affected by the delayed monsoon, raising concerns that the arrival of the new crop will also be delayed. This is putting pressure on existing stocks. Activity in the resale market has also intensified due to strong demand. Prices for pressed bale cotton are hovering around ₹67,500–68,500 per candy, while quotes from resellers and multinational companies are running about ₹1,000 higher than CCI rates.
CCI sales remain robust. Approximately 2 lakh bales were sold last week, while sales on Monday were estimated at around 70,000 bales. To date, total CCI sales are estimated at around 91.5 lakh bales, with unsold stock standing at approximately 14 lakh bales.
By last Friday, the cotton acreage in the country had crossed 106 lakh hectares. Acreage increased in Gujarat, Telangana, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, and Odisha, while declines were recorded in Maharashtra, Karnataka, and Rajasthan.
Indian cotton is also receiving support from the international market. December cotton futures on the ICE are trading around 84 cents per pound. A weaker dollar, weather-related concerns in key US cotton-producing regions, a potential reduction in global stocks, and improved demand have bolstered the market.
According to experts, cotton consumption has strengthened due to rising yarn demand in both domestic and export markets and increased production of coarse-count yarn. By the end of September, India's closing stock could drop to around 75–80 lakh bales.
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