Cotton prices rise amid strong demand and supply constraints

Cotton candy prices increased 0.04 per cent to Rs 54,160 due to strong export orders and growing demand from apparel industry. However, domestic cotton arrivals in Punjab, Haryana, and Rajasthan have declined 43 per cent year-on-year as of November 30, 2024, due to farmers holding back kapas (un-ginned cotton) in anticipation of better prices. This has led to raw material shortages for ginners and spinners, further tightening supply.

India’s cotton production for the 2024-25 season is projected at 302.25 lakh bales, while imports are expected to rise sharply to 25 lakh bales, up from the previous season. As of November-end, 9 lakh bales had arrived at Indian ports.

Ending stocks for September 2025 are forecasted at 26.44 lakh bales, down from 30.19 lakh last year. Globally, cotton production is estimated at 117.4 million bales, with higher output in India, Argentina, and Brazil, while consumption is set to rise, led by India, Pakistan, and Vietnam.

Technically, prices face resistance at Rs 55,540, with further support at Rs 53,260 amid mixed supply-demand dynamics.