Indian cotton arrivals improve, while buyers turn cautious in easing market

Indian cotton arrivals have shown signs of improvement as the 2026 kharif crop arrives across various Indian states. However, buyers remain cautious as global prices ease, leading to a decrease in domestic prices. According to trade sources, daily arrivals of raw cotton are estimated at around 30,000 bales of 170 kg each, with an expected increase from the first week of October onwards.

In North India, daily arrivals stand at approximately 8,000 bales, while in Karnataka, Andhra, and Madhya Pradesh, arrivals are around 4,000, 5,000, and 5,000 bales respectively. Gujarat is estimated to have around 4,000 bales arriving daily.

The demand for cotton is sluggish due to a slowdown in the yarn market, with yarn export demand also slow as yarn prices are linked to ICE Futures, which have dropped from 93 cents per pound to 83 cents per pound. Raw cotton prices in Raichur and Adoni hover around ₹9,300-9,500 per quintal and ₹9,200-9,500 per quintal, respectively, while in Maharashtra, they are around ₹8,600 per quintal due to high moisture levels.

The State-run Cotton Corporation of India reduced auction prices by ₹1,600 per candy (356 kg) to around ₹67,000 levels in response to the easing trend on ICE. However, buyers have not responded to the price cut and are waiting for better opportunities as the new crop supply improves. The 2025-26 crop price has dropped to around ₹66,500-67,500 levels, down from previous highs of Rs 70,000 per candy.

Cotton acreage as of September 18 was reported at 109.61 lakh hectares, slightly lower than the 110.60 lakh hectares in the previous year. States like Telangana, Gujarat, and Madhya Pradesh have seen an increase in area, while others have experienced a decline.