India's CCI procures 32.5 lakh bales cotton, puts pressure on mills

According to industry sources, CCI has procured 14.50 lakh bales from Telangana, accounting for nearly half of the total procurement. The government agency has also purchased 2.70 lakh bales from north India, 5.91 lakh bales from Maharashtra, 1.83 lakh bales from Madhya Pradesh, 3.63 lakh bales from Karnataka, 44,000 bales from Odisha, 1.97 lakh bales from Gujarat, and 1.61 lakh bales from Andhra Pradesh.

Traders said around 70 lakh bales of cotton were pressed by the end of November. Pressing is expected to accelerate in December, taking the total to over 140 lakh bales by year-end. Of this, CCI’s procurement is likely to reach about 50 lakh bales during the same period, implying a lifting of around 33–35 per cent by the government agency.

The Committee on Cotton Production and Consumption (CCPC) has estimated India’s total cotton production at 292.15 lakh bales in the 2025–26 season, down from 297.24 lakh bales in 2024–25 and 325.22 lakh bales in 2023–24.

Total cotton supply is projected to decline to 377.65 lakh bales in 2025–26 from 401.58 lakh bales in 2023–24 and 386.11 lakh bales in 2024–25. Against this, total demand is expected to ease to 337.00 lakh bales from 354.11 lakh bales and 340.61 lakh bales in the previous two seasons, reflecting softer mill offtake and subdued export prospects. Consequently, closing stocks are seen falling from 47.47 lakh bales in 2023–24 to 45.50 lakh bales in 2024–25 and a tighter 40.65 lakh bales in 2025–26, signalling a progressively tighter market.

On the consumption side, large mills (non-MSME) are expected to remain broadly stable at around 213 lakh bales in 2025–26, marginally lower than earlier levels, while MSME consumption is projected at about 93 lakh bales, indicating continued pressure on smaller spinning units. Non-textile use is steady at 16 lakh bales. Imports for 2025–26 are estimated at around 40 lakh bales, slightly lower than 41.4 lakh bales in 2024–25, though estimates vary widely, underscoring policy and demand uncertainty. Exports are forecast to weaken further to about 15 lakh bales in 2025–26 from around 18 lakh bales in 2024–25, weighed down by weak global demand and higher domestic prices relative to global benchmarks.

ALCHEMPro News Desk (KUL)