The Indian cotton market is witnessing significant intervention from the state-run Cotton Corporation of India (CCI), which has procured a substantial portion of the current season’s crop. As of early 2025, CCI has acquired over 6.3 million bales of raw cotton (kapas), representing approximately 46% of the estimated 13.6 million bales that have entered the market so far. This aggressive procurement strategy aims to stabilize the market and support cotton farmers.
Regional data highlights the concentration of CCI’s purchasing activity. Telangana leads with 3.2 million bales procured, followed by Maharashtra with 1.6 million. Smaller quantities have been purchased in Gujarat, Andhra Pradesh, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Haryana, and Punjab, showcasing a nationwide effort. Notably, CCI’s procurement pace has accelerated in recent weeks, doubling its purchases since mid-December.
Despite this substantial intervention, raw cotton prices remain a concern, lingering below the government’s minimum support price (MSP). Kapas prices currently range between ₹7,100-₹7,200 per quintal, falling short of the set MSP of ₹7,121 for medium staple and ₹7,521 for longer staple varieties. This price discrepancy underscores the challenges faced by cotton farmers despite market support.
However, there are positive indicators within the market. Prices for pressed cotton have seen a recent uptick of ₹1,000-₹1,250 per candy (356 kg), stabilizing within the ₹53,500-₹54,500 per candy range. This firming trend is partially attributed to rising cottonseed prices, which have increased by 10-15% due to constrained supply, now trading between ₹3,400-₹3,500. This increase in cottonseed value provides indirect support to overall cotton prices.
While raw cotton prices remain a concern for farmers, the textile industry’s response to the CCI’s procurement and the firming of pressed cotton prices is mixed. Mill buying remains sluggish, with limited bulk purchases observed. This cautious approach could be attributed to various market factors, including global demand and inventory levels.
Daily cotton arrivals currently exceed 200,000 bales, primarily from Maharashtra and Telangana. Arrivals in Maharashtra are expected to increase further following a delayed harvest and recent state elections. Telangana has seen over 3.4 million bales arrive, with CCI procuring a significant 3.2 million. Maharashtra’s arrivals stand at approximately 2.7 million bales, with CCI acquiring 1.6 million.
Approximately half of the anticipated 30 million bale crop has entered the market. While the Committee on Cotton Production and Consumption estimates a slightly lower crop size of 29.9 million bales, the Cotton Association of India projects 30.2 million bales, primarily due to reduced acreage this kharif season.
The CCI’s significant market presence is a key factor in the current cotton season. While price challenges persist at the farm level, the firming of pressed cotton prices and the rise in cottonseed values offer some stability to the broader textile market. The coming weeks will be crucial in observing the impact of increased arrivals, mill buying patterns, and the continued influence of state intervention on the overall health of the Indian cotton industry.