A sudden surge in cotton prices has taken farmers by surprise and brought renewed optimism to the market. While prices remained stable at the beginning of the season, a sharp upward trend has emerged within a short span. Supported by limited arrivals, strong demand, and global market factors, cotton prices have climbed close to ₹8,500 per quintal. This rally has enabled farmers to secure rates well above the Minimum Support Price (MSP), positioning cotton once again as a profitable crop.
At the start of the cotton season, farmers did not anticipate such favorable prices. Cotton was trading in the range of ₹6,500 to ₹7,000 per quintal, raising concerns about limited returns. However, the sudden market momentum has completely changed the outlook, with prices now hovering around ₹8,500 per quintal. The sharp rise has boosted farmer sentiment across major cotton-producing regions.
For the 2025–26 season, the government has fixed the MSP for medium staple cotton at ₹7,790 per quintal and for long staple cotton at ₹8,100 per quintal. Despite this, private traders in Akola district are offering prices higher than the MSP. In several mandis, cotton is being sold between ₹8,400 and ₹8,500 per quintal. Due to better price realization, farmers are increasingly preferring private traders over the Cotton Corporation of India (CCI).
Several factors are contributing to the rise in cotton prices. This year, the area under cotton cultivation has declined, resulting in lower market arrivals. Additionally, the re-imposition of import duty on cotton has reduced the inflow of foreign cotton. Concerns over lower production in the international market have further strengthened prices.
Rising Cottonseed Prices Fuel Market Strength:
Prices of cottonseed (kapas seed), also known as sarki, have witnessed a sharp increase. Earlier trading at ₹3,000 to ₹3,200 per quintal, cottonseed prices have now crossed ₹4,000 per quintal. The rise in cottonseed prices has positively impacted overall cotton valuations. Anticipating future shortages, traders are stocking cottonseed and lint, which is further pushing prices upward.
Traders’ Outlook Remains Bullish: Cotton traders point out that reports of reduced cotton sowing in major producing countries such as Brazil and China have heightened concerns about a global supply crunch. According to trader Rajkumar Rungta, expectations of lower international production combined with rising cottonseed prices are directly benefiting farmers. Akot mandi trader Dhiranjan also believes that strong demand for lint and yarn, along with limited arrivals from outside markets, is keeping cotton prices firm.
