Cotton Prices Surge as Output Concerns Mount
Prices of cotton have surged by more than 8.5% in April, driven by concerns over reduced production and rising demand from textile mills. The widely used Shankar-6 variety, primarily grown in Gujarat, has reached ₹60,500 per candy, marking a sharp increase compared to last month.
According to the Committee on Cotton Production and Consumption, India’s cotton output for the current marketing season ending September 30 is estimated at around 291 lakh bales—about 0.42% lower than the 2024–25 season.(sis)
At the same time, domestic consumption is on the rise. Textile mills are projected to use 312 lakh bales this season, up from 306 lakh bales last year, further tightening supply conditions.
Industry leaders have raised concerns over the supply gap. Durai Palanisamy, Chairman of the Southern India Mills Association, emphasized the urgent need to review import duties on cotton, citing shortages that are impacting the textile sector, the country’s largest consumer of the fibre.
Adding to the bullish sentiment, global cotton prices are also climbing. Nishanth Asher, Secretary of the Indian Cotton Federation, noted that cotton futures for July have increased significantly—from around 64.5 cents per pound in December 2025–January 2026 to nearly 79.8 cents. This marks a notable rise compared to the 64–70 cent range seen over the past three years.(sis)
Globally, production is expected to fall short by 1.5 to 2.5 million bales from earlier estimates. Lower rainfall in key producing countries such as the United States and Brazil is likely to impact output, though projections remain tentative.
Additionally, rising crude oil prices are influencing fibre economics. Polyester, which is derived from petrochemicals, has become more expensive amid geopolitical tensions, prompting a shift in demand toward cotton. Even marginal changes in demand are contributing to the upward pressure on prices.(sis)
Overall, a combination of lower output, rising global prices, and increasing textile demand is supporting the current rally in cotton prices.
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