CAI President discusses cotton market trends and import policy

CAI President Atul Ghanatra Highlights Key Cotton Market Trends and Duty-Free Import Extension

The President of the Cotton Association of India (CAI), Atul Ghanatra, shared key updates on the current cotton market scenario, including import trends, minimum support prices (MSP), and the impact of the government’s extension of duty-free cotton imports.

Duty-Free Cotton Imports Surge :- 

The government’s decision to extend the duty-free import window until December 31, 2025, has given spinning mills a major opportunity to import cotton at zero duty.

With domestic cotton prices remaining on the higher side, Indian spinning mills have taken advantage of the situation, importing an estimated 30 lakh bales of cotton ove the coming three months (October to December).

Of this total, spinning mills and consumers accounted for about 20 lakh bales, while multinational companies (MNCs) and traders import to we expected around 5–7 lakh bales.

“We expect total shipments of around 30 lakh bales to would have arrived in the coming three months,” Ghanatra said.

However, uncertainty remains over whether the government will extend the duty-free period further. “Spinning mills are expecting at least a one-month extension, but nothing is confirmed yet,” he added.

Farmers Protected by Higher MSP :-

The Minimum Support Price (MSP) for cotton has been increased to ₹8,110 per quintal, up from ₹7,500 last year — a hike of ₹600.
“This increase ensures that farmers remain protected,” Ghanatra noted.

Last year, the Cotton Corporation of India (CCI) procured around 100 lakh bales, roughly one-third of India’s total cotton crop of 312 lakh bales. About 30% of farmers benefited from MSP purchases, while the remaining sold their produce in open markets.

This year, CCI is yet to begin large-scale procurement, as officials are waiting for moisture levels in cotton to drop to 8–12%. Recent rains across major cotton-growing regions have delayed this process.
“We expect 30–35% of farmers to benefit from MSP procurement this year, while others may get between ₹7,000 and ₹7,500 per quintal, similar to last year,” he said.

Market Outlook: Price Pressure Likely to Continue :- 

According to CAI estimates, India began the current cotton year on October 1 with an opening stock of 61 lakh bales. With an expected new crop production of 315 lakh bales and potential imports of up to 50 lakh bales by September 2026, the market is likely to face continued price pressure.

On the global front, ICE futures are trading around 64–65 cents per pound, converting to approximately ₹45,000 per candy, which is considered to be very low side compared to last year.

“Until international prices improve, the Indian cotton market will continue to face downward pressure,” Ghanatra concluded.

read more :- Farmers agree, government purchase of cotton to begin from November 1

https://wa.me/919111677775