Cotton Prices Rise on Strong Mill Demand, CCI Price Hikes Support Market

Cotton prices moved higher on Tuesday evening across Gujarat and northern states, supported by increased buying from spinning mills. The Cotton Corporation of India (CCI) has also raised its selling prices by as much as ₹3,200 per candy over the past month, contributing to the bullish sentiment. In Ahmedabad, Gujarat, prices of the benchmark Shankar-6 variety rose by ₹250 to trade between ₹57,800 and ₹58,200 per candy (356 kg). In Punjab, spot delivery prices of kapas (raw cotton) strengthened to ₹5,700–5,910 per maund, while in Haryana, rates increased to ₹5,620–5,750 per maund. Upper Rajasthan markets reported prices of ₹5,600–5,970 per maund, whereas in lower Rajasthan, cotton was quoted at ₹54,500–55,500 per candy. Nationwide arrivals were estimated at 36,750 bales, each weighing 170 kg. On the global front, cotton prices showed an upward trend in electronic trading on the ICE exchange. On Monday, the CCI sold 2,88,700 bales (170 kg each), with spinning mills purchasing 1,13,700 bales and traders accounting for 1,75,000 bales. During this period, the corporation increased its selling price by ₹1,300 per candy. Since the beginning of March, CCI has cumulatively raised cotton prices for the 2025–26 season by ₹3,200 per candy. International cotton markets have also strengthened, with ICE futures gaining nearly 15% since the first week of March. Prices in major producing regions have firmed up in recent weeks. Market estimates indicate that over 280 lakh bales have already arrived in producing mandis this season, leaving only about 38–40 lakh bales yet to enter the market. In key regions such as Raichur, Adoni, and parts of Maharashtra and Gujarat, cotton prices have surpassed the MSP of ₹8,110 per quintal. The recent rise in prices has been largely driven by increased demand from spinning mills across Gujarat and northern India. Traders attribute the uptrend in domestic markets to strengthening global prices. Additionally, most domestic spinning mills are currently holding limited cotton stocks, while a weaker rupee against the dollar has improved yarn export demand. Despite the bullish trend, CCI continues to release significant quantities of cotton into the domestic market and holds substantial inventory. However, the corporation has been consistently increasing its selling prices on a weekly basis. As a result, domestic cotton price movements are expected to remain closely linked to CCI’s pricing strategy. Although production estimates for the current season are higher and imports are also expected to rise, selling by ginners remains limited at current price levels, further supporting the market.

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