Indian cotton prices reached a seasonal low of ₹53,000 per candy due to weak demand and declining cottonseed prices. However, prices have shown signs of recovery, with support from the Cotton Corporation of India’s (CCI) MSP-based purchases.
Raw cotton prices remain below the MSP, and cottonseed prices have dropped due to weaker demand. Daily cotton arrivals have increased, with half procured by the CCI. Market experts suggest that prices are bottoming out, allowing millers to purchase.
However, weak demand for yarn and tight liquidity have slowed buying in the South, while farmers are reluctant to sell at current rates. The Cotton Association of India predicts a 7% drop in output for 2024-25 at 302 lakh bales, with consumption estimated at 313 lakh bales.
