Higher MSP, Monsoon Boost Cotton Sowing Across India

Cotton sowing is gaining momentum across key growing regions of India, with farmers increasingly favouring the crop during the ongoing kharif season, supported by higher minimum support prices (MSP), assured procurement and lower water requirements compared to competing crops.

In Gujarat, the country’s largest cotton-producing state, farmers had planted cotton on 93,499 hectares as of June 8, significantly higher than the 34,011 hectares reported during the same period last year, according to data from the State Agriculture Department. Industry estimates suggest the area under cotton in the state has already crossed one lakh hectares.

Atul Ganatra, Chairman of the Crop Committee of the Cotton Association of India (CAI), expects cotton acreage to increase across major producing regions this season. He estimates sowing in Central India could rise by around 15 percent, while southern states may witness an increase of 10–20 percent.

Although cotton area is likely to decline in Punjab and Haryana, a substantial increase in Rajasthan is expected to offset the losses, resulting in an overall rise of 7–10 percent in the northern region, he said.

According to Ganatra, total cotton acreage in India could exceed 130 lakh hectares during the 2026-27 season, compared with 114.82 lakh hectares planted in the previous year.

The increase is being driven by a combination of factors, including the Centre’s decision to raise the MSP for cotton by Rs 557 per quintal, taking the support price to Rs 8,267 per quintal for medium staple cotton and Rs 8,667 per quintal for long staple cotton. Continued procurement by the Cotton Corporation of India (CCI) has also boosted farmer confidence.

“Cotton requires less water than several competing crops. With concerns over lower rainfall and a possible El Niño impact, many farmers see cotton as a safer option,” Ganatra said.

In southern India, sowing activity has accelerated following the advance of the southwest monsoon. Ramanuj Das Boob, a cotton sourcing agent based in Karnataka, said planting has progressed rapidly in regions that have received adequate rainfall.

In major cotton-growing belts of Andhra Pradesh, including Adoni, Nandyal and Yemmiganur, around 70 percent of sowing has already been completed, while planting activity is also advancing in parts of Telangana, including Mahabubnagar and adjoining areas.

Meanwhile, the Cotton Corporation of India has reduced its cotton selling price by Rs 2,500 per candy in an effort to stimulate demand. Industry sources said CCI sold around 8,500 bales to mills on Monday, while trader purchases exceeded 20,000 bales.

Despite the price reduction, market demand remains subdued. Weak yarn demand and declining yarn prices continue to weigh on cotton consumption by spinning mills.

“Yarn movement remains slow, and unless demand improves, cotton consumption is unlikely to see a significant recovery,” market participants said.