Gandhinagar

Cotton Prices Fall By ₹1,580 Per Quintal In Four Years, Gujarat Farmers Struggle With Rising Costs

By GS Team
9 Nov 20262 mins read
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Gujarat cotton farmers face mounting debt as market prices plummet from ₹8,829 to ₹7,249 per quintal by 2025-26, while input costs soar. Inadequate government procurement and alleged trader collusion leave farmers unable to recover production costs, impacting loan repayments and future cultivation in key regions like Saurashtra.

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Cotton Prices Fall By ₹1,580 Per Quintal In Four Years, Gujarat Farmers Struggle With Rising Costs
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Cotton cultivation, once a major source of income for farmers in Gujarat, is increasingly becoming a financial burden as market prices decline while the cost of seeds, fertilisers and labour continues to rise.

The average model price of cotton has dropped from ₹8,829 per quintal in 2022–23 to ₹7,249 in 2025–26, a decline of ₹1,580 over four years, according to data from the Union Ministry of Agriculture.

The fall in prices has added to the difficulties of farmers who have invested thousands of rupees per acre in cultivation. With both government procurement rates and open-market prices reportedly failing to provide adequate returns, farmers fear they may not even recover their production costs.

Cotton Prices Decline After 2022–23

Official government figures show that the average model price of cotton fell sharply in 2023–24 and has remained considerably below its 2022–23 level.

The year-wise average model prices are:

Year
Average model price per quintal
2022–23
₹8,829
2023–24
₹7,038
2024–25
₹7,161
2025–26
₹7,249

The price recovered marginally after 2023–24 but remained ₹1,580 per quintal lower in 2025–26 than in 2022–23.

Rising Input Costs Add To Farmers’ Financial Burden

Farmers say the declining prices have come at a time when the cost of agricultural inputs, including expensive seeds, fertilisers and labour, has increased.

They allege that inadequate government procurement and collusion among traders have further affected the prices they receive in the market. According to farmers, the support prices offered for cotton are not sufficient to cover the actual cost of cultivation.

As a result, farmers who have spent heavily on preparing and harvesting their crops are struggling to secure remunerative returns when they take their produce to market.

Saurashtra And North Gujarat Farmers Face Debt Pressure

The declining returns have also affected farmers' ability to repay loans taken from cooperative societies and banks.

Farmers, particularly in Saurashtra and North Gujarat, are facing mounting financial pressure as poor price realisation combines with losses caused by natural disasters and rising cultivation expenses.

With cotton prices remaining below their 2022–23 levels, farmers are concerned about meeting household expenses, repaying existing loans and arranging finance for the next cropping cycle.