India is poised for a record cotton procurement season for the second consecutive year, with the Cotton Corporation of India (CCI) acting as the primary purchasing agency. As of now, the CCI has procured 100 lakh bales of 170 kg each during the current marketing season, which wraps up on September 30. The declining prices of cotton in both domestic and international markets are anticipated to drive more farmers to CCI procurement centers, where they can benefit from the higher minimum support price (MSP) guaranteed by the government.
Despite a decrease in cotton acreage for the 2025–26 season, several factors are expected to culminate in even greater government procurement this year. The Ministry of Agriculture reported that cotton acreage has dropped to 109.90 lakh hectares as of last Friday, down from 112.76 lakh hectares in the same period last year. Since sowing has concluded, this figure represents the final acreage. Previously, in 2023–24, the area was 123.71 lakh hectares, with a five-year average of 129.50 lakh hectares.
The CCI is set to initiate its annual procurement campaign for seed cotton (kapas) under the MSP scheme from the 2025–26 season. The Ministry of Textiles has confirmed that this procurement will commence in a phased manner starting in October.
The first phase will begin on October 1 in northern states such as Punjab, Haryana, Rajasthan, and parts of western Uttar Pradesh, where the harvest typically begins earliest. Procurement centers in these regions are already being established, and some farmers in Punjab have started delivering their cotton to mandis ahead of the official procurement timeline.
Following this, procurement efforts will shift to the central states—Maharashtra, Madhya Pradesh, and Gujarat—scheduled to commence on October 15, aligning with the peak arrival period. These states represent the largest share of India’s cotton acreage, and the CCI has announced plans to create a comprehensive network of procurement centers to ensure the coverage of MSP. The final phase will encompass the southern states—Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu—expected to initiate around October 21.
Officials from the Ministry of Textiles have emphasized that there will be no quantitative limits on procurement; CCI is prepared to purchase as much kapas as farmers deliver, as long as market prices remain below the MSP. Should prices exceed the MSP, the agency will limit its purchases to commercial transactions.
Once again, the upcoming season is forecasted to witness record procurement. New cotton arrivals in northern states have already led to a price decrease of approximately 5-6% over the past two weeks, with the influx beginning in mid-September.
Market observers have noted that the government has authorized duty-free cotton imports until December 31, 2025. Nonetheless, CCI and traders face challenges in selling last season’s cotton due to significant carryover stocks. Estimates indicate that around 62–65 lakh bales will remain as closing stocks this season, predominantly held by CCI. Clearing this inventory is essential to make room for the new crop.
Traders are concerned about the likelihood of price stabilization given the sluggish consumption patterns, particularly in light of the recently implemented 50% tariffs from the U.S. Falling cotton prices in the open market are expected to compel farmers to sell their produce to CCI. The government has set the MSP for seed cotton (kapas) at ₹7,710 (approximately $86.94) per quintal for the 2025–26 season, reflecting an 8.27% increase from the previous year’s MSP. Currently, seed cotton is being traded at ₹6,000–7,000 (approximately $67.66-78.94) per quintal in northern Indian markets, pending the start of CCI’s procurement operations.
