Indian cotton bale prices are set by the domestic spot trade, quoted per candy of 356 kg, and they move daily with arrivals, mill demand, the international price and the exchange rate. The government also sets a minimum support price for seed cotton each season, which puts a floor under the market, and the Cotton Corporation of India buys at that price when market rates fall below it. An export buyer pays a price built up from that domestic candy rate plus pressing, handling, inland transport, port charges and the exporter's margin.
How the quote is built
Farmers sell seed cotton, called kapas, to ginners at local market yards. The ginner separates lint from seed and presses the lint into bales of roughly 170 kg. Lint is then traded in candies, so a candy is roughly two bales. The candy rate quoted in Ahmedabad or Rajkot for a given variety and grade is the number the whole trade watches, and the Cotton Association of India publishes reference rates that many contracts refer to. Rates are usually quoted for prompt delivery, with forward months carrying a separate quote.
What moves the price
- Arrivals: heavy daily arrivals from November to February tend to soften prices, and thin arrivals late in the season tend to firm them.
- Mill demand: yarn export orders and domestic fabric demand pull cotton prices up or down within weeks.
- International prices: Indian rates track global cotton futures loosely, with the rupee exchange rate widening or narrowing the gap.
- Minimum support price: when the market approaches the support level, Cotton Corporation of India buying slows the fall.
- Quality: longer staple, lower trash and a tighter micronaire range all carry premiums over the base rate.
- Government policy: changes to export or import duties and stock limits can move prices quickly.
From candy rate to your landed cost
An exporter starts with the candy rate, converts it to a per-kilogram or per-bale figure, and adds pressing, moisture and weight adjustments, transport to Mundra, Kandla (Deendayal) or Pipavav, port and documentation charges, and a margin. Freight and insurance come on top depending on the Incoterm. Because the candy rate moves daily, most exporters hold a quote for only a day or two unless you fix the price with a deposit.
Weight matters as much as price. Bales are sold by weight at an agreed moisture level, and a lot that arrives heavier with moisture or lighter after storage changes the real cost. Agree the weighing point and the moisture tolerance in the contract. Bale weights also vary from press to press, so a contract that states a number of bales without a weight tolerance can mislead.
What we do
We follow the candy rate through the season and tell you plainly when arrivals and prices suggest booking or waiting. We visit the ginner, check weights and moisture at pressing, send sealed samples to an NABL-accredited lab and supervise loading at the port. With one approved supplier and one backup and a short weekly update, you always know where your lot stands. A free 20-minute sourcing review is a good first step if you have not bought Indian cotton before.