Cotton Market: Cotton prices rise by 5.24% in a week; farmers receiving rates above MSP
The country's cotton market is witnessing renewed strength. Prices have surged significantly due to a continuous decline in cotton arrivals at the mandis (wholesale markets). During the week ending June 28, the average market price of cotton in the country rose to ₹8,902 per quintal, marking a 5.24% increase compared to the previous week. This rally, occurring just before the start of the new cotton season, is considered welcome news for cotton-growing farmers.
According to market experts, the primary reason for the price hike is the sharp drop in cotton arrivals at the mandis. Total cotton arrivals across the country's Agricultural Produce Market Committees (APMCs) were 23.54% lower than the previous week. The impact was most pronounced in Maharashtra, where a 54.75% decline in arrivals was recorded. Limited stocks intensified buying competition among traders, thereby strengthening market prices.
The Central Government had set the Minimum Support Price (MSP) for medium-staple cotton at ₹7,410 per quintal for the 2025-26 season, while raising it to ₹8,267 per quintal for the 2026-27 season. Currently, the average price in the open market exceeds even the new MSP. Consequently, farmers are securing better returns by selling in the open market rather than at government procurement centers.
Among key markets, the highest average price was recorded in Amravati at ₹8,955 per quintal. Additionally, average prices stood at ₹8,902 in Rajkot, ₹8,304 in Parbhani, and ₹8,200 per quintal in Buldhana.
In the coming days, the trend of cotton prices will depend on sowing for the new season, the progress of the monsoon, domestic demand, and global market conditions. However, prices are likely to remain supported as long as stocks from the previous season remain limited. Therefore, farmers who still hold cotton stocks can decide when to sell by keeping a close watch on market trends.
