Cotton Prices Rise on Strong Demand, Weak Rupee and Global Market Rally
2026-03-28 11:34:43
Cotton Prices Firm Up as Demand Rises Amid Weak Rupee and Strong Global Trends
Cotton prices in India have continued to strengthen, supported by rising demand from spinning mills and trade participants. Domestic prices are also tracking the upward global trend, while the weakening of the rupee against the US dollar is making imports costlier and supporting local price gains.
On Friday, the Cotton Corporation of India (CCI), the country’s largest cotton stockholder, increased prices of the natural fibre by ₹300 per candy (356 kg). With this revision, CCI has raised prices by a total of around ₹1,900 per candy since the beginning of the month, reflecting sustained upward momentum in the market.
A senior official from Cotton Corporation of India noted that the price revision is aligned with global market trends, adding that demand for both cotton and yarn remains strong. The official also highlighted that around 39 lakh bales (170 kg each) have already been sold in March out of a total procurement of 1.05 crore bales, indicating robust market activity.
ICE Futures Rally Over 14%
Cotton futures on the Intercontinental Exchange have risen by more than 14% since early March. Prices for May 2026 delivery are trading above 69 cents per pound, while July contracts are hovering above 71 cents.
According to industry experts, the combined effect of a weakening rupee and rising global futures prices is expected to keep upward pressure on high-quality cotton prices in the coming days.
Cotton Association of India former president Atul Ganatra said that the current trend suggests further price firmness ahead if currency depreciation and global futures continue to rise.
Stronger Export Demand from Asia
Market participants also noted improving demand for Indian cotton yarn from countries such as China, Bangladesh, and Vietnam, as global supply chains remain disrupted due to ongoing geopolitical tensions.
Traders said that a weaker rupee is also making Indian cotton more attractive to international buyers, further supporting demand from both mills and multinational trading firms.
