Cotton prices have risen above the MSP level due to a rise in cottonseed prices and the end of duty-free imports. | Photo credit: S. Harpal Singh
According to the trade, CCI has so far procured around 80 lakh bales of 170 kg each and the procurement is still underway in several states including Telangana and Maharashtra.
Prices harden
Cotton prices have risen above the minimum support price (MSP) level in recent weeks after cottonseed prices rose and the government ended the import duty waiver on December 31. At the end of August, the government announced an exemption from import duties to give textile and spinning mills access to cheaper raw materials from abroad.
Production estimates up
“Cottonseed prices have increased by about ₹700 per quintal in the past month, from about ₹3,600-3,700 per quintal to a high of about ₹4,300, and have fallen to ₹R4,100. Similarly, cottonseed prices have increased by about ₹4,000 per sweet to about ₹4,000 per sweet. 55,000-56,000 levels Raw cotton prices have increased from around Rs 7,700 levels to around ₹8,200-8,300 levels,” said Ramanuj Das Boob, a purchasing agent in Raichur. “With the CCI announcing its sales plans from next week, buyers are waiting for their price,” he said.
Imports are increasing
Recently, trade body Cotton Association of India (CAI) revised the crop estimate for 2025-2026 upward by about 2.5 per cent, or 7.5 lakh bales of 170 kg each, to 317 lakh bales, due to higher-than-estimated production in Maharashtra and Telangana. CAI expects a year-end surplus of 122.59 lakh bales for the 2025-26 season, an increase of 56% year-on-year from the record imports of 50 lakh bales during the year. Imports were higher at 31 lakh bales till December 31. For the current cotton year 2025-26 ending September, CAI expects imports to reach a record 50 lakh bales, compared to last year’s 41 lakh bales.
Published on January 16, 2026
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