Cotton prices in Maharashtra have surged to around Rs 8,900–9,000 per quintal, marking the sharpest increase since 2022, driven by strong global demand and higher polyester prices linked to rising crude oil costs.

However, the rally has brought little benefit to cotton farmers, as most had already sold their produce earlier in the season at significantly lower prices ranging between Rs 6,800 and Rs 7,000 per quintal.

Industry sources said nearly 90 per cent of farmers had exhausted their cotton stocks months before the recent price spike, leaving warehouses across key cotton-growing regions largely empty.

The price rise has been supported by a sharp recovery in international cotton markets, with cotton prices on the New York Exchange climbing from around 63 cents to 87 cents in recent months. Increased demand from China for cotton-based yarn production, amid higher polyester costs due to geopolitical tensions and crude oil volatility, has also pushed global cotton demand higher.

While farmers missed the rally, the Cotton Corporation of India (CCI) is expected to benefit significantly. The agency had procured nearly one crore bales earlier in the season at lower prices and is now reportedly selling its remaining stock of around 45 lakh bales at current higher market rates.

Many ginning and pressing units have also reportedly run out of cotton stocks, limiting their ability to benefit from the improved market conditions.