Heavy Procurement of Cotton at MSP Continues in Various Markets

Although there is a possibility of a decline in domestic cotton production this year due to a reduction in sowing area and damage to crops from natural disasters, in some cases, the wholesale market prices are still below the Minimum Support Price (MSP) set by the government. It is noteworthy that the central government has increased the MSP for cotton by ₹589 for the 2025-26 marketing season, setting the price at ₹7,710 per quintal for medium staple cotton and ₹8,110 per quintal for long staple varieties. However, the wholesale market price is still running well below these levels. The government has already removed the 11% import duty on cotton, and with international cotton prices declining, a large volume of cotton is being imported from countries such as Australia, Brazil, and the United States into India. According to the Cotton Association of India, India imported around 4.1 million bales of cotton during the 2024-25 marketing season, and it is expected to increase to about 4.5 million bales in the current 2025-26 season (October-September), a 10% rise.This has led to reduced interest from the Indian textile industry in buying domestic cotton. The rains in October caused damage to cotton crops in several states, and the moisture content in the cotton bolls increased. Additionally, the impact of the Cyclone Motha in Telangana and Andhra Pradesh partially damaged cotton crops. However, the weather has cleared now, and good quality cotton is beginning to arrive at government procurement centers. The Cotton Corporation of India (CCI) has made extensive arrangements for purchasing cotton in major producing states.

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