CCI sells more than half of cotton procured in current season

India's primary government agency for cotton procurement, Cotton Corporation of India (CCI) has successfully sold more than half of the cotton it acquired in the current marketing season. The CCI had procured a 100 lakh bales (each weighing 170 kg), which is nearly a third of India's total cotton output. As of the first week of July, the agency's sales have reached 56.34 lakh bales.

According to market sources, the CCI currently holds an unsold stock of approximately 43 lakh bales from the current season's production. Most of the cotton stock from the previous season has already been liquidated.

Despite lower domestic production, cotton prices in India have remained subdued due to weak demand. India's cotton production for the current season is estimated to decline to 301 lakh bales, down from 327 lakh bales in the previous season. This price disparity has made domestic cotton less attractive, leading to a surge in imports. India's cotton imports soared by 131.30 per cent to $189.18 million during the first two months of the current fiscal year (April-March). In May 2025 alone, imports increased by 133.14 per cent to $102.3 million. India's cotton marketing season runs from October to September.

The Indian government's decision to raise the minimum support price (MSP) by 8 per cent prompted the CCI to procure seed cotton directly from farmers at this higher rate. This increased MSP made domestic cotton more expensive, inadvertently encouraging imports from international markets.

Market sources indicate, the textile industry is increasingly relying on CCI's stock this season. Private ginners largely refrained from purchasing significant quantities of seed cotton due to persistent price disparities, making CCI's auctioned stock a primary source for the industry. This trend has been the main driver behind the higher volume of auction sales from the CCI.