According to market sources, CCI holds an unsold stock of nearly 43 lakh bales of cotton produced in the current season. Most of the previous season’s cotton stock has already been sold.
India’s cotton imports surged by 131.30 per cent to $189.18 million during the first two months of the current fiscal 2025–26 (April–March). In May 2025 alone, imports rose 133.14 per cent to $102.3 million. India’s cotton marketing season runs from October to September.
Cotton production in India is estimated to decline to 301 lakh bales this season, down from 327 lakh bales in the previous season. Despite lower production, cotton prices have remained subdued due to weak demand. Price disparity has dampened interest in domestic cotton, while sluggish demand for garments in both domestic and global markets has further affected cotton consumption.
The Indian government raised the minimum support price (MSP) by 8 per cent, prompting CCI to procure seed cotton directly from farmers at the higher rate. The increased MSP made domestic cotton more expensive, encouraging imports from foreign markets.
Market sources noted that the textile industry is more dependent on CCI’s stock this season, as private ginners refrained from purchasing significant quantities of seed cotton due to persistent price disparities. This has been the main driver behind the higher volume of auction sales from CCI’s stocks.
ALCHEMPro News Desk (KUL)
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