The Cotton Association of India (CAI) has projected a 7% increase in the area under cotton cultivation for the 2026-27 marketing season. This expansion is attributed to the remunerative prices and better income realized by farmers during the current season.
Supply Dynamics
The CAI's National Crop Committee, after a meeting in Mumbai, estimated the total cotton crop for the 2025-26 season at 334 lakh bales of 170 kg each. Imports are anticipated to increase by 15% to 47 lakh bales, while exports remain flat at 18 lakh bales.
- 2025-26 Crop Estimate: 334 lakh bales
- Imports: 47 lakh bales (+15%)
- Exports: 18 lakh bales (flat)
Demand Trends
Domestic demand for cotton is projected to rise by 7.6% to 338 lakh bales. The surplus is expected to increase to 103.59 lakh bales, up from the previous year's 78.59 lakh bales. The closing stocks for the 2025-26 season are estimated at 85.59 lakh bales, marking a 41% increase over the previous year.
"The increase in cotton cultivation area is a positive sign for the industry, reflecting the confidence of farmers in the market," said Vinay N Kotak, President of CAI.
Price Outlook
The minimum support price for cotton has been increased by ₹557 per quintal, reaching ₹8,267 for medium staple and ₹8,667 for long staple. This price adjustment is likely to support the expansion in crop area.
| Season | Crop Area Increase | Import Growth | Domestic Demand Growth |
|---|---|---|---|
| 2026-27 | 7% | 15% | 7.6% |
The CAI plans to conduct a survey to ascertain total cotton consumption in India, with discussions to continue in upcoming board meetings.
