Cotton Prices Rebound On Supply Concerns, Stronger Mill Demand
Cotton prices rose by Rs 3,000–4,000 per candy last week to around Rs 68,000 as slow arrivals, concerns over lower yields and improving demand from spinning mills supported the market. Farmers also held back supplies in anticipation of further price increases.
The recovery coincided with gains in December and March cotton futures on the Intercontinental Exchange. The Cotton Corporation of India increased its auction prices for the 2025–26 crop by Rs 500 per candy of 356 kg across all states.
Gujarat’s benchmark Shankar-6 cotton reached Rs 68,000 per candy on Monday, up from Rs 64,000 on September 30. Deficient rainfall and reduced acreage have raised concerns over production, while lower yields have made farmers reluctant to sell their limited stocks.
Arrivals during the first nine days of the 2026–27 season totalled approximately five lakh bales. Monday’s arrivals stood at around 78,000 bales, including 17,000 in North India, 16,000 in Madhya Pradesh, 15,000 in Gujarat, 9,000 in Karnataka, 8,000 in Andhra Pradesh, 7,000 in Maharashtra and 6,000 in Telangana.
Despite the arrival of the new crop, immediate supplies remain tight. October availability could fall short of domestic consumption requirements, while low inventories at several spinning mills are supporting fresh purchases. Substantial import requirements are also expected to influence the supply outlook.
Demand has strengthened in southern markets, where limited arrivals have encouraged buying of locally available cotton. Prices in Raichur increased to Rs 9,700 per quintal on Monday from Rs 9,500, while prices in Telangana reached around Rs 9,200 per quintal.
The market outlook remains firm, supported by supply constraints and improving mill demand. However, the pace of new arrivals, rainfall conditions and international price movements could cause short-term fluctuations.
