Monsoon Delays And Global Trends Support Cotton Market
Indian cotton prices have strengthened in recent days, supported by a rally in international cotton futures and concerns over delayed monsoon progress in key cotton-growing regions. The Cotton Corporation of India (CCI) has increased its cotton prices by nearly Rs 1,100 per candy (356 kg), reflecting stronger market sentiment and improving demand from spinning mills.
The upward movement comes amid a slow start to the 2026-27 cotton sowing season. According to the latest data from the Ministry of Agriculture, cotton acreage reached 17.13 lakh hectares as of June 19, significantly lower than the 22.82 lakh hectares recorded during the corresponding period last year. Industry participants attribute the decline primarily to delayed rainfall across major producing states, particularly Maharashtra and parts of Central India.
International market trends have played a key role in supporting domestic cotton prices. Market experts noted that ICE December cotton futures have climbed from around 75 US cents per pound to nearly 80 cents per pound over the past few weeks, boosting confidence across global cotton markets. The stronger futures market has encouraged higher price quotations in India and prompted mills to secure supplies amid expectations of tighter availability.
Monsoon uncertainty continues to be a major factor influencing market sentiment. In Vidarbha, one of the country’s largest cotton-producing regions, sowing activity remains limited due to insufficient rainfall. While farmers with access to irrigation have begun planting, large-scale sowing is yet to gather pace. With the sowing window extending until mid-July, market participants remain hopeful that improved rainfall could help recover acreage in the coming weeks.
Demand for CCI cotton has also witnessed a notable increase. Industry sources indicate that the corporation sold approximately seven lakh bales during the previous week, reflecting active procurement by spinning mills. CCI cotton is currently quoted in the range of Rs 62,500–Rs 63,200 per candy, while private traders and multinational companies are offering cotton at premiums above CCI rates due to tighter availability and rising replacement costs.
Despite the rise in cotton prices, yarn markets have remained relatively subdued. The lack of a corresponding increase in yarn prices is emerging as a concern for spinning mills, as higher raw material costs could put pressure on operating margins if finished product realizations do not improve.
Industry estimates place total cotton stocks at around 182.5 lakh bales. Spinning mills are believed to hold nearly 94 lakh bales, while CCI retains approximately 25.5 lakh bales of unsold inventory. The remaining stocks are held by ginners, traders and exchange warehouses.
Looking ahead, cotton prices are expected to remain firm in the near term, supported by stronger global futures, lower arrivals, active mill demand and weather-related uncertainties. Market participants will closely monitor monsoon progress over the coming weeks, as improved rainfall could accelerate sowing activity and influence price trends during the remainder of the season.
