- CCI raises cotton prices amid tightening sentiment
- Cotton sowing down 25% y-o-y amid uneven monsoon
Indian cotton prices have firmed over the assessment week ended 23 June 2026 as delayed monsoon progress across key producing regions and a rally in international cotton futures boosted market sentiment. The Cotton Corporation of India (CCI) has cumulatively increased cotton prices by around INR 1,100/candy (356 kg), reflecting growing concerns over sowing delays and stronger global benchmarks.
Sowing lag fuels supply concerns
According to the latest Agriculture Ministry data, cotton sowing reached 1.71 million hectares as of 19 June, down 25% from 2.28 million hectares during the same period last year. Delayed rainfall across Central India, particularly in Maharashtra’s Vidarbha region, has slowed planting activity, raising concerns over the pace of crop establishment.
Trade participants noted that uncertainty surrounding monsoon progress has encouraged buyers to build inventories, lending support to domestic prices. While sowing is expected to accelerate with improved rainfall, market participants expect planting activities to continue through mid-July in several regions.
Global market adds bullish momentum
The domestic uptrend has been reinforced by gains in ICE cotton futures. December ICE cotton futures climbed to nearly 80 US cents/lb from around 75 US cents/lb in recent weeks, improving overall market sentiment and supporting higher domestic quotations.
Robust offtake of CCI stocks
Demand for CCI cotton remains strong, with around 700,000 bales sold during the week. Market sources indicated that multinational buyers were quoting prices nearly INR 1,000/candy above CCI rates, while resellers were offering premiums of INR 300-500/candy. CCI cotton prices are currently assessed at INR 62,500-63,200/candy.
Outlook
Cotton prices are expected to remain firm in the near term, supported by delayed sowing, active procurement of CCI stocks and stronger global futures. However, rainfall progress over the coming weeks and its impact on acreage development will remain critical for determining the market’s next direction.
Leave a Reply