Cotton prices surge ₹4,000 a candy, T.N. textile mills fret over costs

Cotton prices have surged ₹4,000 a candy in the past 10 days, barely 22 days into the 2026-27 cotton marketing season, raising concerns among more than 1,500 textile mills in Tamil Nadu over rising input costs.

“Cotton arrivals are not as expected for a couple of reasons,” said Nishant Asher, secretary of the Indian Cotton Federation.

Cotton prices have risen from ₹64,000 to ₹68,000 a candy on an ex-gin basis, an unusual increase for October. The anticipated decline in production, farmers holding back stocks in expectation of higher prices, and the scheduled reimposition of import duty from November 1 are contributing to the price rise, Mr. Asher said.

According to Durai Palaniswamy, chairman of the Southern India Mills’ Association, domestic cotton consumption in the 2025-26 season, which ended on September 30, 2026, stood at 336 lakh bales. Despite imports of 67 lakh bales, closing stocks were just 40 lakh bales.7

“Cotton farmers will not lose this year as the production is expected to be just 260 lakh bales as against a demand of 360 lakh bales. This is going to keep prices strong. However, if the import duty is reimposed, the textile industry will lose its competitiveness,” he said, calling for a balanced approach that will benefit the industry and the farmers.