CCI Resumes Cotton Sales, Lowers Price by ₹2,300 Per Candy

Cotton Corporation Restarts 2025-26 Crop Sales Amid Easing Global Cotton Prices

The Cotton Corporation of India (CCI) has resumed sales of cotton procured during the 2025-26 season and reduced prices by ₹2,300 per candy (356 kg). The move follows a decline in global cotton prices, though market response from traders and mills remained limited.

The Cotton Corporation of India (CCI) on Friday resumed sales of cotton procured from the 2025-26 season after reducing the price by ₹2,300 per candy (356 kg), citing softer global cotton prices.

Despite the reduction, demand from mills and traders remained subdued. Sources indicated that the CCI was able to sell only around 1,200 bales on Friday, with nearly 800 bales purchased by mills and the remaining quantity bought by traders.

This marks the second price reduction by the CCI in recent days. Last week, the corporation lowered prices by ₹700 per candy before suspending sales on May 22 due to technical reasons.

Price Gap Continues to Affect Demand

Market participants said the price correction has not yet generated significant buying interest.

“Even at these reduced prices, the sales were meagre as there are less buyers. There is still a mismatch in price. The buyers are seen preferring to wait and watch. Moreover, the prevailing yarn prices are not supporting them,” said Ramanuj Das Boob, a sourcing agent in Raichur.

Recent declines in international cotton prices prompted the CCI to revise its pricing strategy. Following a fall in ICE cotton futures, sellers reportedly offered cotton at a discount of approximately ₹2,000 per candy compared with CCI prices earlier this week.

ICE cotton futures, which had gained around 47 per cent since early February this year to reach 88 cents per pound on May 11, have since eased and are currently trading near 76 cents per pound. Improved weather conditions in the United States and Brazil, along with lower crude oil prices, have contributed to the decline.

MSP Procurement and Stock Position

The CCI has procured around 105 lakh bales of 170 kg each during the current season. The state-run agency now holds a substantial share of cotton stocks, with inventories estimated at around 32 lakh bales.

The corporation began selling cotton procured under the minimum support price (MSP) mechanism at ₹57,200 per candy. Prices were subsequently reduced to about ₹54,600 before being increased to ₹68,600 levels.