Indian cotton prices have rebounded by ₹3,000–₹4,000 per candy as concerns over lower crop yields and improving mill demand support the market. Prices have reached around ₹68,000 per candy, driven by slow new-season arrivals and expectations of tighter supplies.

Deficient rainfall and reduced cotton acreage have affected crop prospects in several regions. As a result, farmers are holding back their produce in anticipation of better prices rather than selling immediately at the minimum support price (MSP).

Slow Arrivals Support Cotton Prices

India recorded around 5 lakh bales of new-season cotton arrivals during the first nine days of the 2026–27 season. However, market arrivals remain limited compared with the potential demand from domestic textile mills.

Gujarat S6 cotton prices rose to ₹68,000 per candy on Monday, up from ₹64,000 on September 30. In Raichur, local cotton prices increased to ₹9,700 per quintal from ₹9,500. Prices in Telangana also reached around ₹9,200 per quintal.

The Cotton Corporation of India (CCI) has raised its auction prices for the 2025–26 cotton crop by ₹500 per candy across all states. Meanwhile, international cotton futures also recovered, adding support to the domestic market.

Textile Mills Maintain Buying Interest

Market participants report improved buying interest from spinning mills. Low cotton inventories and expectations of limited supplies in October could increase the need for domestic purchases and imports.

Farmers are also reluctant to sell at the MSP of ₹8,650 per quintal, as lower yields have reduced the quantity of cotton available for sale. Many growers expect prices to improve further if supply remains tight.

Cotton Market Outlook Remains Firm

Industry experts expect cotton prices to remain supported by the current supply-demand situation. However, increasing arrivals and movements in international markets could trigger short-term fluctuations.

For India's textile industry, cotton price movements will remain important in the coming weeks. Higher raw material costs could affect spinning mills and yarn prices, while better cotton demand may support trading activity across the textile value chain.

The market outlook remains firm to cautiously bullish, with rainfall, crop yields, farmer selling and mill demand likely to determine the next phase of price movements.