Cotton Selling Below CCI Rates Amid Global Price Softness; Yarn Market Also Sluggish
As cotton futures prices on ICE soften, domestic re-sellers and multinational companies have begun selling cotton at rates lower than the prices fixed by the Cotton Corporation of India (CCI). This situation has emerged at a time when both domestic and global demand remain weak.
From the beginning of February through mid-May, ICE cotton futures prices witnessed a sharp surge. Rising from a level of approximately 60.52 cents per pound on February 9, prices reached 88 cents per pound by May 11. However, subsequently—driven by prospects of improved weather in the US and Brazil, a decline in crude oil prices, a strengthening US dollar, and uncertainties regarding global demand—prices retreated to the 76–77 cents per pound range.
According to Anand Popat of CotYarn Trade Link, the softness in the global futures market was reflected in the Indian spot market as well, though the decline in domestic prices remained limited. The primary reasons for this were low arrivals, limited availability in the spot market, and strong domestic basis levels. He noted that Indian cotton is currently still trading at a premium of approximately 8.55 cents per pound relative to ICE July futures.
The CCI had commenced the sale of cotton procured during the 2025–26 season. Initially, it had lowered its selling prices to around ₹54,600 per candy; however, in light of global trends, these rates were subsequently raised to ₹68,600 per candy. Nevertheless, sales have been suspended since May 22 due to technical reasons. The CCI procured approximately 10.5 million bales of cotton this season; of these, about 7.2 million bales have already been sold, while a stock of 3.3 million bales remains.
According to market sources, re-sellers and multinational companies are currently selling their stock at a rate approximately ₹2,000 per candy lower than the CCI's listed price. Meanwhile, the yarn market also remains sluggish. Due to weak demand, yarn prices have witnessed a decline of ₹30–35 per kilogram.
In the meantime, the Cotton Association of India (CAI) has projected that the area under cotton cultivation could increase by approximately 7 percent during the upcoming Kharif season. The government has also hiked the Minimum Support Price (MSP) for cotton by ₹557 per quintal for the 2026–27 season.
read more :- Cotton Prices Extend Losses Amid Weak Demand
