Surge in Cotton Prices Driven by Monsoon Delay and Global Rally
By yash chouhan 2026-06-23 11:40:52
Surge in Cotton Prices Driven by Monsoon Delay and Global Rally
The Indian cotton market has witnessed a recent rally due to strengthening cotton futures in the international market and the sluggish progress of the monsoon in key cotton-producing regions. Industry experts attribute the support for domestic prices to global cues and delays in sowing.
Over the past few days, cotton prices set by the Cotton Corporation of India (CCI) have risen by approximately ₹1,100 per candy (356 kg). According to Ministry of Agriculture data, cotton sowing across the country dropped by 25 percent to 17.13 lakh hectares by June 19, compared to 22.82 lakh hectares during the same period last year. Sowing has been affected in several regions due to the delayed arrival of the monsoon.
Atul Ganatra, Chairman of the Crop Committee at the Cotton Association of India (CAI), stated that the rally in the international market is the primary reason for the price hike. ICE December cotton futures have risen from 75 cents per pound to nearly 80 cents per pound, while July futures are trading at around 76 cents per pound.
Arun Khetan, a cotton broker from Akola, noted that large-scale sowing has not yet commenced in major cotton-producing regions like Vidarbha. However, some farmers with irrigation facilities have already completed sowing. He projected a potential 10 percent increase in the total cotton acreage this year.
Ramanuj Das Boob, a sourcing agent from Raichur, stated that market strength persists due to uncertainty regarding the monsoon and production levels. He noted that while cotton prices have risen, yarn prices have not increased proportionately.
Meanwhile, demand for CCI cotton remains robust; approximately 7 lakh bales were sold last week. According to industry experts, the domestic market is being supported by the limited availability of high-quality cotton, dwindling stocks, and sustained buying by spinning mills.
