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Indian cotton prices face pressure as global prices ease and arrivals rise

Our read

Cotton softness offers apparel brands a delayed margin tailwind, but weak demand and the smaller-crop risk limit the upside.

For operators

Lower cotton prices and rising arrivals may ease near-term sourcing costs, but plan for volatility as the next crop is expected to be smaller.

Watch

October new-crop arrival volumes and whether they exceed seasonal expectations

The report,

Indian cotton prices fell to around ₹64,500-65,500 per candy (356 kg) as global futures eased and arrivals increased. New-crop arrivals of 50,000-55,000 bales of 170 kg each are expected to rise during October, while the 2026-27 crop may be 10 per cent lower.

Indian cotton traded around ₹64,500-65,500 per candy, with arrivals rising
Indian cotton price per candy (356 kg)
₹64,500-65,500 levels per candy (356 kg)
Expected new-crop arrivals, rising in October
50,000-55,000 bales of 170 kg each
Possible fall in 2026-27 cotton crop
10 per cent

What to track next

  • Indian spot cotton prices relative to the ₹64,500–65,500 per-candy range
  • Global cotton futures direction and domestic basis spreads
  • Confirmation of the projected 10% reduction in the 2026–27 crop
  • Yarn and fabric price pass-through, supplier lead times, and apparel discounting

The counter-case

The case against this reading — not reported by the source.

Lower cotton prices could reduce input costs for apparel brands and manufacturers, potentially supporting margins; the signal does not show whether brands can capture that benefit, given sourcing contracts, hedging, inventory timing, and yarn or fabric conversion costs. A smaller 2026–27 crop could also reverse the decline.

The source

Source Read the source at The Hindu BusinessLine

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