Cotton prices surge due to fears of low production and strong demand; Shankar-6 rate hits ₹68,000 per candy
The domestic cotton market has witnessed a surge driven by slow arrivals of the new crop, concerns over reduced production due to scanty rainfall, and robust demand from spinning mills. According to trade sources, cotton prices rose by approximately ₹3,000 to ₹4,000 per candy last week. In Gujarat, the price of Shankar-6 cotton reached around ₹68,000 per candy. The market has also found support as farmers are holding back sales in anticipation of better prices.
Domestic market sentiment has strengthened following a rally in December and March cotton futures contracts on the Intercontinental Exchange (ICE) in the international market. Meanwhile, the Cotton Corporation of India (CCI) has raised the auction prices for its cotton stock by ₹500 per candy (356 kg) for the 2025-26 season.
**New crop arrivals and price situation**
Approximately 5 lakh bales of the new cotton crop arrived across the country during the first nine days of the 2026-27 season. Reports indicate that daily arrivals totaled around 78,000 bales. This included 17,000 bales from North India, 16,000 from Madhya Pradesh, 15,000 from Gujarat, 9,000 from Karnataka, 8,000 from Andhra Pradesh, 7,000 from Maharashtra, and 6,000 from Telangana.
According to Atul S. Ganatra, CMD of Radhalakshmi Group, farmers are in no rush to sell, hoping for better prices. In Gujarat, the price of Shankar-6 cotton rose from ₹64,000 on September 30 to ₹68,000 per candy. Market supported by mill demand
According to Anand Popat of CotYarn Trade Link, prices are being supported by limited supplies and improved demand from spinning mills. However, market volatility may persist due to rising arrivals of the new crop and fluctuations in international prices.
According to Ramanuj Das Boob, a cotton sourcing agent in Raichur, demand in the local market remains strong. Cotton prices have reached ₹9,700 per quintal in Raichur and approximately ₹9,200 per quintal in Telangana.
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