Impact of Rainfall and Market Prices on Cotton Production in 2026-27
New Delhi: The area under cotton cultivation is high for the 2026-27 marketing season (October 2026 to September 2027). However, the total volume of cotton production in the new season will depend on several factors. Speaking at the association's annual meeting on September 30, Nishant Asher, Secretary of the Indian Cotton Federation, stated that rainfall in cotton-growing states and the condition of the standing crop would play a crucial role in determining production levels for the new season.
He noted that various factors—such as international cotton prices, currency exchange rates, and price fluctuations of other fibers—would continue to influence the demand for cotton.
Federation President J. Thulasidharan stated that the country's cotton production during the 2025-26 marketing season ranged between 320 and 325 lakh bales. Throughout this period, there was a steady arrival of cotton from the southern states and Maharashtra.
Domestic cotton prices surged by approximately 25 percent over the last two months, driven by concerns regarding deficient rainfall and the condition of standing crops in Gujarat and Telangana. Conversely, global ICE cotton futures prices declined from an earlier average of 86 cents per pound to the 80–82 cents per pound range. According to the Federation, the widening gap between domestic and international prices has squeezed margins for spinning mills and impacted the competitiveness of textile exports.
The national average cotton yield, which stood at 565 kg per hectare in 2013-14, has currently dropped to around 430 kg per hectare. Addressing this decline in yield and the long-standing stagnation remains a major challenge for the cotton industry. The Federation demanded a complete waiver of import duty on cotton from the government and sought the provision of low-interest loans on a priority basis to ginners and spinning mills for seasonal cotton procurement.
During the meeting, J. Thulasidharan, Managing Director of Rajaratna Mills, was re-elected as Chairman. P. Nataraj, Managing Director of KPR Mill, and Aditya Krishna Pathy, Managing Director of Lakshmi Mills, were re-elected as Vice-Chairmen, while Nishant Asher was re-elected as Secretary.
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