Cotton prices in India have increased by ₹4,000 per candy in just 10 days, putting pressure on more than 1,500 textile mills in Tamil Nadu during the 2026–27 cotton marketing season.

Prices have risen from ₹64,000 to ₹68,000 per candy on an ex-gin basis. Lower-than-expected cotton arrivals, anticipated production declines, farmers holding back stocks and the planned reintroduction of import duty from November 1 are contributing to the increase.

According to industry representatives, domestic cotton consumption reached 336 lakh bales in the 2025–26 season, while closing stocks stood at only 40 lakh bales despite imports of 67 lakh bales. With production expected to fall short of demand, prices may remain firm.

Industry leaders have called for a balanced approach to cotton import duties to protect farmers while maintaining the global competitiveness of India's textile industry.