Indian govt raises cotton MSP up to 11.84% for 2025-26 season
The Indian government has increased the Minimum Support Price (MSP) of cotton by up to 11.84 per cent for the upcoming 2025–26 season (October–September). MSP is the price at which the government purchases cotton from farmers through its nodal agency, the Cotton Corporation of India (CCI).
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in MSP for 14 Kharif crops, including cotton, for the next marketing season 2025–26.
India has raised the Minimum Support Price (MSP) for cotton by up to 11.84 per cent for the 2025–26 season, with medium staple at ₹7,710 and long staple at ₹8,110 per quintal. While aimed at supporting farmers, traders argue the hike makes Indian cotton less competitive globally, with domestic prices now higher than Brazilian cotton on a CIF basis.
According to a government press release issued on Wednesday, the MSP for medium staple seed cotton has been raised by 8.27 per cent to ₹7,710 ($90.18) per quintal. The purchase price for long staple fibre has been increased by 11.84 per cent to ₹8,110 ($94.86) per quintal. Over the past 12 years, the government has increased MSP by up to 108 per cent, with medium staple cotton rising 108 per cent and long staple cotton 103 per cent during this period.
However, the increase in cotton MSP has not been well received by the trading community. Traders believe that excessive MSP hikes make Indian cotton uncompetitive in the global market and place the Indian textile industry in a difficult position. Jagdish Soni, a trader from Ahmedabad, compared pricing dynamics, noting that Indian cotton would cost around ₹63,000 per candy of 356 kg or 94 cents per pound, while Brazilian cotton (ICE cotton December 2025 contract) would be available at ₹60,600 per candy (90.45 cents per pound) on a CIF basis.
Fibre2Fashion News Desk (KUL)
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