Pressure on Indian Cotton Market Due to Falling Global Prices; Arrivals Expected to Rise
Cotton Market: The Indian cotton market is feeling the impact of declining global cotton prices, rising arrivals of the new crop in the domestic market, and weak demand. In auctions conducted by the Cotton Corporation of India (CCI), prices for the 2025-26 season's cotton have dropped by approximately ₹1,200 per candy over the past two days.
According to trade sources, domestic cotton prices have fallen from recent highs of around ₹70,000 per candy to the ₹64,500–₹65,500 range. In this market context, one candy is equivalent to 356 kilograms. Cottonseed prices have also declined, exerting downward pressure on raw cotton prices.
Weakness has also been observed in the global market. Cotton futures for December delivery on the New York Intercontinental Exchange (ICE) were trading at around 80.13 cents per pound, down from a high of approximately 93 cents per pound reached in late August.
**Sluggish Buying; New Crop Arrivals Expected to Increase**
According to Ramanuj Das Boob, a sourcing agent based in Raichur, cottonseed prices have dropped by ₹300–₹400 per quintal, settling at around ₹4,600–₹4,700 per quintal. He noted that buying activity is currently slow. Demand for cotton bales from spinning mills remains limited, with many mills holding stocks sufficient for about 1 to 1.5 months.
Daily arrivals of the new crop are currently estimated at around 45,000–50,000 bales. Anand Popat of CotYarn Trade Link expects arrivals of the new crop to increase further in October. This could keep domestic cotton prices under pressure for some time. However, the limited availability of the old crop with spinning mills could provide some support to the market.
According to Anand Popat, the Indian cotton market is now entering a supply-driven phase. Future price trends may depend on factors such as the arrival of the new crop, mill buying, and government policy regarding duty-free cotton imports.
Meanwhile, Atul S. Ganatra, CMD of the Radhalakshmi Group, has projected—based on interactions with farmers in cotton-growing states and surveys of standing crops—that cotton production in 2026-27 could be around 10 percent lower than the previous year. According to Ganatra, rainfall was deficient between June and September this year; this could affect water availability for farmers during subsequent pickings and impact overall production.
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