15 Dec 2025
As cotton arrivals gain momentum across markets, procurement by the state-run Cotton Corporation of India (CCI) at the minimum support price has picked up sharply, with daily purchases exceeding one lakh bales (170 kg each). Market arrivals crossed two lakh bales on Monday, according to trade sources.
“Procurement has commenced in all cotton-growing states except Odisha. Last Friday, daily purchases crossed one lakh bales, and cumulative procurement so far this season is close to eight lakh bales,” said Lalit Kumar Gupta, Chairman and Managing Director of CCI.
With cotton prices continuing to trade below MSP amid weak global demand and bearish international trends, CCI is expected to play a larger role in stabilising the market through intervention buying. Raw cotton (kapas) prices in the private trade are currently ruling between ₹6,500 and ₹7,500 per quintal, significantly lower than the MSP of ₹8,100.
Quality concerns emerge
Gupta said CCI’s procurement this season is likely to exceed last year’s levels, given the wide gap between market prices and MSP. In 2024–25, CCI procured more than one crore bales of cotton. He cautioned, however, that quality issues are more pronounced this year.
To facilitate procurement, CCI has opened around 570 purchase centres nationwide, of which about 400 are operational. “Around 15 new centres are becoming functional every day,” he added.
Unseasonal and excess rainfall has adversely affected cotton quality this season, while acreage has declined as some farmers shifted to alternative crops such as maize and oilseeds.
“The arrivals are increasing steadily and CCI has begun bulk purchases. Prices should stabilise as aggressive buying continues,” said Vinay N. Kotak, President of the Cotton Association of India (CAI).
Kotak noted that good-quality cotton is scarcer compared with last year due to weather-related damage. “The quantity loss is relatively small, but quality damage is significant. As a result, the price differential between lower-grade and premium cotton is widening,” he said.
CAI has estimated India’s 2025–26 cotton crop at 305 lakh bales of 170 kg each, about 2 percent lower than the previous season’s 312.40 lakh bales.
Echoing similar concerns, Ramanuj Das Boob, a sourcing agent from Raichur, said quality variation has been observed across states. “Weak yarn demand has reduced mill buying. While buyers are willing to pay reasonable prices for quality cotton, larger mills have covered part of their requirements through imports,” he said.
Currently, good-quality cotton is trading at ₹50,500–52,000 per candy (356 kg), while lower-grade cotton is priced between ₹47,500 and ₹49,000 per candy, reflecting the growing premium for quality produce in the market.