*Ex-gin cotton prices surge by ₹4,000 per candy; concerns rise among over 1,500 textile mills in Tamil Nadu*
Tamil Nadu:Cotton prices have seen a sharp rise following the commencement of the 2026-27 cotton marketing season in the country. Over the last 10 days, ex-gin cotton prices have climbed from ₹64,000 to ₹68,000 per candy. This increase of approximately 6.25 percent has sparked concerns regarding rising production costs for more than 1,500 textile mills in Tamil Nadu.
Market surge driven by limited cotton arrivals
According to Nishant Asher, Secretary of the Indian Cotton Federation, the arrival of new-season cotton in the market has fallen short of expectations. Such a steep rise in prices during October is considered unusual.
He noted that several factors are likely contributing to this price surge, including a potential decline in production, some farmers withholding their stock in anticipation of better prices, and the expected reinstatement of import duties effective November 1.
Production projected to fall short of demand
Durai Palaniswami, Chairman of the Southern India Mills' Association (SIMA), stated that domestic cotton consumption for the 2025-26 season—which ended on September 30, 2026—stood at 33.6 million (336 lakh) bales. During that period, 6.7 million (67 lakh) bales were imported, with a closing stock of approximately 4 million (40 lakh) bales remaining at the end of the season.
He projected that for the current season, cotton demand is expected to reach 36 million (360 lakh) bales, while production is estimated at around 26 million (260 lakh) bales. This gap between demand and production is likely to provide support to prices.
Concerns over rising costs for the textile industry due to import duties
According to Palaniswami, while higher cotton prices may offer better returns to farmers, they also raise concerns regarding increased costs for the textile industry. However, the reintroduction of import duties could increase raw material costs for textile mills. This raises concerns that the competitiveness of the Indian textile industry in the international market might be affected.
They emphasized the need for the government to adopt a balanced policy that takes into account the interests of both farmers and the textile industry.
read more :- ndhra Cotton Prices May Reach ₹10,000A
