Special conversation with Mr. Atul Ganatra: Discussion on the current situation of cotton
By yash chouhan 2026-02-24 12:05:29
An Exclusive Interview with Shree Atul Ganatra on the Current Cotton Scenario
Indian Cotton Crop and Stock Situation on a Rising Trend
According to Shree Atul Ganatra, as of 21st February, approximately 250 lakh bales of cotton have arrived across India. Nearly 30–40% of the crop still remains with farmers, primarily in Gujarat and Maharashtra. The total Indian cotton crop for this year is expected to touch 315–320 lakh bales, marking a significant increase over last year.
Last year’s closing stock stood at about 60–65 lakh bales, whereas this year it is projected to rise to nearly 100 lakh bales. The sharp increase in stock is attributed to two key factors:
1. Cheaper imported cotton was available between October and December 2025, a period when no import duty was applicable.
2. The Cotton Corporation of India’s pricing policy kept Indian cotton rates higher than global prices, prompting textile mills to switch from Indian to imported cotton.
CCI’s Procurement and Sales Policy
CCI continues to procure cotton under the Minimum Support Price (MSP) scheme, leading to higher acquisition costs. However, when selling cotton, CCI only guarantees staple length and micronaire, whereas private ginners offer comprehensive parameter coverage in their contracts.
It is estimated that CCI may carry unsold stock of nearly 50 lakh bales this year. Looking ahead, CCI’s continued MSP operations could encourage farmers to sow more cotton, potentially increasing the total sowing area by 15–20%, from 110 lakh hectares to 125 lakh hectares.
Indian Mills and Operational Challenges
Currently, Indian spinning mills are holding an average of 90 days’ stock, with several large mills covered through September.
Due to labour shortages, mills are operating at only about 85% of their capacity. Smaller mills with less than 10,000 spindles have increasingly shifted to synthetic fibers. Reports indicate that over the past two years, around 300 mills have shut down in Tamil Nadu.
Global Market Pressure
On the global front, Intercontinental Exchange (ICE) cotton futures are trading at 63–65 cents per pound, reflecting lower international prices. Brazil’s record cotton output of around 200 lakh bales has further pressured USA cotton prices.
The ongoing U.S.–China trade tensions have also impacted demand, as China has reduced purchases of U.S. cotton. Consequently, ICE futures have softened, currently hovering around 64 cents (approx. ₹45,000 per candy) — significantly cheaper compared to Indian cotton at ₹55,000 per candy.
Challenges for Ginning Factories
India has nearly 4,000 ginning factories, yet CCI is operating through only about 1,000 units. This has created a severe bottleneck, leading many factories to operate below capacity or shut down temporarily.
Recommendations to the Government
To address the current challenges, Shree Ganatra has proposed the following measures to the government:
(a) Replace MSP procurement with Direct Benefit Transfer (DBT) under the Bhavantar Yojana to support farmers directly.
(b) Allow CCI to procure raw cotton at MSP from farmers in market yards and sell it directly to ginners without processing it.
(c) Since CCI already sells cottonseed (which constitutes about 67% of kapas) immediately, it should also sell 100% of raw cotton directly to ginners rather than undertaking ginning operations itself.
