The widely traded Shankar-6 cotton variety, primarily grown in Gujarat, was priced at Rs. 60,500 (US $ 645) per candy (356kg), up about 8.5% from a month ago. The increase comes at a time when apparel manufacturers face pressure from weak demand and geopolitical uncertainties.
Domestic supply remains tight as the Committee on Cotton Production and Consumption has estimated India’s cotton output for the current season ending 30th September at around 291 lakh bales, marginally lower than last year. At the same time, consumption by textile mills is rising and is projected at 312 lakh bales, indicating steady demand.
The situation has been further impacted by policy changes. The expiry of the 11% import duty waiver on cotton at the end of December 2025 has pushed domestic prices higher, limiting cheaper imports and tightening availability for mills. In Tamil Nadu, home to nearly half of India’s spinning capacity, mills have reported rising costs and supply challenges.
Spinning mills are grappling with the mounting cost pressures due to sharp increase in raw material prices. Cotton prices have surged from Rs. 52,000 (US $554) per candy on 1st March to Rs. 63,000 (US $671) by 6th April, marking an increase of Rs. 11,000 (US $117) per candy.
In contrast, 40s cotton yarn prices rose from Rs. 265 (US $2.82) to Rs. 290 (US $3.09) per kg, an increase of Rs. 25 (US $0.27), indicating that yarn prices have not kept pace with cotton costs.
Similarly, polyester fibre price has increased from Rs. 101 (US $1.08) to Rs. 131 (US $1.40) per kg, while viscose staple fibre price has gone up to Rs. 188 (US $2) from Rs. 168 (US $1.79) between 1st March and 1st April.
Adding to cost pressures, 60s polyester–viscose yarn prices have risen from Rs. 218 (US $2.32) to Rs. 235 (US $2.50) per kg, highlighting a widening gap between input costs and output realisations. At the same time, labour shortages have intensified as migrant workers from West Bengal, Assam and Odisha returned home to vote, leaving some mills operating at around 50% capacity.
