Cotton prices saw a sharp increase on Monday with the Cotton Corporation of India (CCI) revising upwards the prices by ₹2,900 per candy (356 kg) by over 4 per cent, following the global price rise. On Monday, the Cotton for July delivery on ICE edged up to over 84.5 cents per pound intra-day.
CCI increased the price by ₹2,900 per candy of 356 kg, the sharpest single day increase this season, according to trade sources. With this latest increase, the prices are hovering at a two-year high, sources said. The Cotton Futures on ICE have gained over 28 per cent since the beginning of March till now.
From a seasonal low of ₹54,600 per candy, the cotton prices have moved up currently to around ₹65,600 levels. “This is the highest price in the past two seasons and the quantum of increase by CCI has surprised the trade. It is said that CCI has sold over more than two lakh bales despite the price increase,” said Ramanuj Das Boob, a sourcing agent in Raichur.
The increase in prices of cotton and yarn has already started facing some resistance from the fabric makers. “From airjet to conventional looms, there is a significant shortage of workers leading to major delays in fabric deliveries. At the same time, due to the sharp rise in yarn prices, even lower-level deliveries are getting delayed,” Boob said.
Demand abroad
In the recent weeks, the demand for the Indian cotton yarn has also gone up from countries such as China, Bangladesh and Vietnam amidst the disruption in the global supply chain due to the ongoing war.
According to Anand Poppat of Cotyarn Tradlink, unsold stocks with CCI are around 40 lakh bales out of the total procurement of approximately 105 lakh bales. “CCI is expected to continue its selling activity. Rising international cotton prices are supporting the pace of sales. The CCI price basis against ICE cotton futures is currently around zero, compared to a premium of over 10¢ earlier. This competitive pricing is likely to attract multinational companies (MNCs) to purchase CCI cotton,” Poppat said in the latest CotYarn weekly newsletter.
The kapas (raw cotton) arrivals are currently estimated at 35,000–45,000 bales per day. “Arrivals remain stable and are expected to continue into the coming month, supported by higher-than-expected production and additional kapas arrivals. Cumulative arrivals have reached 305.00 lakh bales,” Poppat said.
Published on May 4, 2026