Cotton farmers in Telangana are struggling to realise the minimum support price (MSP) of Rs. 8,110 (US $ 91) per quintal, as unseasonal and heavy rains have adversely affected crop quality, limiting their eligibility for government procurement.
The Cotton Corporation of India (CCI) has procured more than 45 lakh bales of cotton from farmers at MSP since 1st October this year. However, only farmers meeting the agency’s quality benchmarks and other prescribed norms are able to access MSP procurement, leaving many excluded due to rain-damaged output. In Tamil Nadu, for instance, CCI procurement from cotton farmers remains nil.
Lalit Kumar Gupta, chairman and managing director of the CCI, said daily cotton arrivals were currently around 2.5 lakh bales. He noted that during the first two-and-a-half months of the previous season, the agency had purchased about 38 lakh bales at MSP, whereas this year procurement had already crossed 45 lakh bales. He added that the CCI expected to buy close to 125 lakh bales during the current cotton marketing season. Gupta also said that while cotton quality was poor in October and November due to unseasonal rains, it had since improved.
In a written reply to a question in the Rajya Sabha, Union Minister of State for Textiles Pabitra Margherita said India had more than six million cotton farmers and that MSPs for the 2025–26 cotton marketing season had been fixed at Rs. 7,710 (US $ 86) per quintal for medium staple cotton and Rs. 8,110 (US $ 91) per quintal for long staple cotton. He said the MSPs ensured a minimum return of 50% over the cost of production. Margherita added that the CCI had operationalised 570 procurement centres across 11 states and had sourced cotton worth Rs. 13,492 crore (US $ 1.51 billion) through transparent e-auction mechanisms to prevent distress sales. The agency purchased 100 lakh bales of cotton at MSP during the 2024–25 season.
Textile industry representatives and cotton traders said quality issues persisted this year due to excessive rainfall in key growing regions. While the industry has sought removal of import duties on cotton, it has also urged the government to address structural challenges such as low yields and poor seed quality.
India’s MSP for cotton is estimated to be at least 10% higher than international prices. Despite this, the area under cotton cultivation in 2025–26 is around 3.5% lower than last season, while overall crop size is down by about 1.7%. Average yields stand at 448 kg per hectare, among the lowest globally, with at least 20 countries recording higher productivity.
Stakeholders across the cotton value chain said improving yields would require urgent focus on seed technology and agronomic research, arguing that higher productivity was essential to enhance farmer incomes and ensure the long-term sustainability of cotton cultivation in India.
Bharat Tex Special Report 2026 
