Indian cotton prices have firmed up following the bullish trend in global prices and amidst concerns over a decline in acreage due to deficient rain. The cotton acreage is down by 15 per cent till July 10 at 79.54 lakh hectares (lh) over 93.95 lh as per the recent Agriculture Ministry data.Cotton Corporation of India’s prices have been raised by ₹800 per candy (356 kg) over the past two days even as demand from both mills and the trade rules firm.“The market is tight and New York prices have also firmed up with futures on ICE moving from around 75-76 cents per pound to around 81-82 cents,” said Ramanuj Das Boob, a sourcing agent in Raichur. “Uncertainty over the coming crop due to delayed monsoon is moving the market,” he said, adding that CCI is witnessing good demand with sales of over 1.2 lakh bales on Monday and 1.5 lakh bales on Tuesday.The multinational companies are also off-loading their stocks and are pricing higher than CCI price by about ₹1,000 per candy, Das Boob said.‘No El Nino impact’Further, he said the cotton that has already germinated needs rains. “There are no rains in parts of Karnataka and Telangana, where cotton has already been sown. If it doesn’t rain now, it may become difficult,” he added.Atul Ganatra, chairman of the Crop Committee of Cotton Association of India (CAI), the apex trade body, is bullish about the cotton prospects, despite concerns over the deficit rain. “El Nino will not impact cotton crop. Actually, it will help in increasing the cotton sowing area. Less rains would been better yield and quality and quantity,” he added.“Cotton sowing is complete in about 80 lh against last year same time 86 lh. By July 25 sowing will cross over 100 lh as almost all growing areas have received good spell of rains. Due to the pause in rains now, farmers are carrying out sowing of cotton speedily,” Ganatra said.In South India, cotton area is 20 per cent excess this year compared to last year. “Due to the late rains, farmers now have the only option of sowing cotton. Total cotton sowing will be in 125-130 lh, about 10-15 per cent more than last year due to late rains,” Ganatra said.Comfortable availabilityGanatra said the big mills are covering cotton at ₹64,000 levels, though they have 3-4 month stocks inside the mills. “As they have bought at cheaper rates, they are buying at the current prices to average,” he said. All big Indian mills are having cotton stock upto November and a few mills up to December 31.Anand Popat, a broker in Rajkot, in his weekly newsletter, said that overall cotton availability remains comfortable in India. However, the premium quality cotton is relatively limited, with a significant share of the available stocks held by CCI and multinational trading companies. “This could keep the cotton prices well supported during the remaining months of the season,” Popat said.The daily kapas arrivals have declined to around 7,000-8,000 bales. Demand from spinning mills remains steady while domestic and export yarn demand has shown a gradual improvement, he said.Published on July 15, 2026