- Higher landed costs of imports, MSP backing keep floor prices firm
- Demand may be need-based amid weak yarn demand, liquidity
The Cotton Corporation of India (CCI) has listed 424,200 bales of FP (fair and prime) cotton for sale through e-auction on 19 January 2026 for the 2025-26 season. The auction covers almost all major cotton-producing states, including Maharashtra, Gujarat, Telangana, Rajasthan, Madhya Pradesh, Punjab, Haryana, Andhra Pradesh, Karnataka, and Odisha. Alongside the listing, CCI has notified firm floor prices for each variety and centre, signalling its intent to release stocks while protecting MSP-linked price levels.
Floor prices of BB MOD (29.5+) cotton were fixed mostly at around INR 56,900-57,200/candy, while BB SPL MOD (29 mm) was largely placed in the INR 56,600-56,900/candy range across centres such as Akola, Adilabad, Warangal, Hubli, Mahabubnagar, and Rayagada. S6 SUP (28 mm) cotton from Gujarat centres such as Ahmedabad and Rajkot carried floor prices close to INR 56,500/candy. H4 MOD/H4 SUP CONV (28 mm) from Indore and Bhilwara was priced relatively lower at INR 55,300-56,300/candy, while J34 DR (27 mm) cotton from Bathinda, Sirsa, and Sriganganagar was placed near INR 54,100-54,300/candy, reflecting staple and quality discounts.
Prices remain supported as CCI stocks are backed by MSP, while the re-imposition of import duty has increased the landed cost of imported cotton. In addition, there is no immediate urgency from CCI or the government to liquidate stocks, as the cotton on offer belongs to the new season.
Despite the large volume on offer, buying interest remains measured. Spinning millers are largely purchasing only for near-term requirements, as yarn demand visibility remains weak and working capital discipline is tight. Mills are showing a preference for cleaner and more consistent FP BB cotton, even at higher prices, to avoid processing risk. Brokers and traders are highly selective, focusing on centres where freight advantage and quality alignment allow workable margins, while avoiding mixed or borderline lots due to strict auction terms.
Looking ahead, the size of the auction limits any sharp upside in spot cotton prices, but the firm floor prices and tight sales conditions also restrict downside risk. CCI’s continued stock rotation suggests prices are likely to stay range-bound, with actual auction realisations depending more on quality, centre-wise demand, and mill liquidity than on headline volume alone. Any improvement in yarn demand could quickly shift bidding towards better-grade FP cotton in upcoming auctions.
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