CCI again reduced the selling price of cotton to increase sales.
Cotton Corporation of India on Monday announced another reduction in the selling price of cotton for the 2025-26 crop. CCI has cut prices by ₹700-1100 for 356 kg of candy to boost its sales. This is when government procurement of cotton at Minimum Support Price (MSP) had reached 98.9 lakh bales of 170 kg on Monday.
The sale price reduction on Monday is the second such move by CCI in the last two weeks, primarily to attract buyers. Earlier, on February 10, CCI had announced a reduction in the selling price by ₹1,400-1,700 per candy. According to trade, the low response from mills and trade to CCI's previous price cut may have prompted the government company to correct its prices in a short period of time.
Trade sources said that the market prices are running lower than the CCI price, due to which the interest of buyers is increasing. Although arrivals have reduced in some states like Karnataka, arrivals are still continuing in the mandi in parts of Maharashtra, Gujarat and Telangana.
CCI's cotton procurement is still going on in states like Maharashtra and Telangana. CCI Chairman and Managing Director Lalit Kumar Gupta said that the quantity purchased at MSP in the current season has reached 98.9 lakh bales.
on global signals
Earlier, Gupta had told BusinessLine that the price reduction by CCI is in line with international prices and sales will increase only after March.
CCI, which started sales of the 2025-26 crop on January 19, is expected to sell around 5 lakh bales due to low response from trade and industry, which are finding cotton and imports attractive in the market.
Ramanuja Das Boob, a sourcing agent in Raichur, said that since arrivals are also declining, CCI can increase its sales if they increase the delivery time from the current 30 days to 60 or 90 days and reduce the price further by ₹500 per candy.
Right now, market prices are around ₹500-1,000 lower than CCI prices. He said cotton prices in Maharashtra and Gujarat are around ₹7,600-7,700.
He said cotton imported especially from Brazil is at the level of ₹52,000-54,000 on port delivery, which is lower than domestic prices.
CAI estimate
Cotton Association of India has estimated the crop size to be 317 lakh bales of 170 kg in 2025-26 and the consumption for the year is estimated to be 305 lakh bales. By the end of January, cotton consumption was estimated at 104 lakh bales.
CAI has projected a year-end surplus of 122.59 lakh bales for the 2025-26 season, which is 56 per cent more than the record import of 50 lakh bales during the year. By the end of January, imports were more than 35 lakh bales and exports were more than 6 lakh bales.
read more :- Special conversation with Mr. Atul Ganatra: Discussion on the current situation of cotton
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