Raw Cotton Prices Remain Firm Despite Initial Arrivals of New Crop
Despite volatility in the global market, raw cotton prices remain firm alongside the initial arrivals of the new Kharif season crop in several parts of the country. Arrivals of the new crop have commenced in Karnataka, Andhra Pradesh, Rajasthan, Haryana, Telangana, Madhya Pradesh, and parts of Gujarat.
The central government has fixed the Minimum Support Price (MSP) for medium-staple cotton at ₹8,267 per quintal and for long-staple cotton at ₹8,667 per quintal for the 2026-27 marketing season.
According to Ramanuj Das Boob, a sourcing agent based in Raichur, raw cotton prices in markets such as Raichur, Bellary, Adoni, and Yemmiganur range between ₹9,200 and ₹9,500 per quintal, depending on moisture content. These rates are above the MSP.
Boob stated that, given current international price trends, raw cotton prices are likely to remain above the MSP.
ICE cotton futures are hovering around 87 cents per pound, down from approximately 93 cents on Tuesday. Following the decline in ICE prices, multinational companies (MNCs) in India have had to lower their procurement prices by about ₹2,000 per candy (356 kg). Meanwhile, the Cotton Corporation of India (CCI) has maintained its price levels.
According to Boob, despite the lower prices offered by MNCs, there are few takers. Mills are also cautious about purchasing due to weak demand for yarn and are closely monitoring market trends.
Anand Popat from Rajkot noted that limited arrivals have also begun in parts of Gujarat, with prices hovering around ₹1,900–2,000 per *maund* (20 kg). Arrivals are delayed by over a month due to late sowing and are expected to pick up pace from the beginning of November. Currently, the arrival of the new crop is around 50,000 bales per week, a figure that could rise to approximately 1 lakh bales per week over the next two weeks.
According to Ministry of Agriculture data from September 4, cotton has been sown across 109.17 lakh hectares in the country, compared to 109.87 lakh hectares during the same period last year.
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