Cotlook Index: 21-07-2026
88.00 (+0.35)
ICE cotton extends gains for second day on higher crude oil
Wed. 22nd July 2026 (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures extended gains for a second consecutive session, with the December 2026 contract settling 1.90 per cent higher at 80.42 cents per pound.
Stronger crude oil prices, successful Chinese state cotton reserve auctions and delayed cotton planting in India supported prices.
However, the rally came on the lightest trading volume of 2026, indicating mainly short covering.
ICE cotton futures extended gains on the second consecutive day, yesterday. US cotton prices were supported by rising crude oil which lends support as polyester fibre becomes costlier due to stronger crude oil. Optimism for better Chinese demand was surrounded by Chinese state reserve cotton auctions.
The most active December 2026 contract settled at 80.42 cents up 1.50 cent or 1.90 per cent. The contract recovered 179 points over the past two trading sessions. While other nearby contracts gained 45 to 159 points. The frond months led the advance, a generally supportive sign for nearby demand.
Cotton was supported by stronger crude oil prices, continued optimism surrounding China's state reserve cotton auctions, and ongoing concerns about weather-related production risks in India. This marked the first time since July 1, that the entire ICE cotton board posted back-to-back higher closes.
Crude oil prices climbed about 2 per cent, reaching a five-month high, after tensions between the United States and Iran escalated further and attacks on commercial shipping in the Red Sea increased concerns over global energy supplies. Higher crude prices raise the production cost of polyester fibre, improving cotton's competitiveness against synthetic fibres.
Trading volume fell to just 28,096 contracts, the lightest trading session of 2026 and the lowest since Christmas Eve, compared with 32,026 contracts in the previous session. The strong price gain on very light volume suggests much of the rally was driven by short covering rather than aggressive new buying.
China's second state cotton reserve auction again recorded 100 per cent sales, with 8,045 tonnes sold. Around 85 per cent of the cotton offered was of US and Brazilian origin, with the remainder from Xinjiang, like the first auction. The consecutive sell-outs reinforced expectations of steady mill demand, although traders noted that the auctions remain too small to significantly alter the overall supply outlook.
Market analysts said cotton was supported mainly by higher crude oil prices, continued geopolitical uncertainty in the Middle East, and the successful Chinese reserve auctions, which highlighted underlying demand.
Analysts said India's monsoon rainfall remains below normal, with cotton planting estimated to be about 23 per cent behind last year's pace. The delayed sowing has raised concerns over India's production potential, providing additional support to global cotton prices.
China's Zhengzhou Commodity Exchange (ZCE) cotton futures eased slightly after the previous session's sharp rally. Traders noted there is still no consistent short-term correlation between ZCE and ICE price movements.
ICE certified cotton stocks declined further to 97,800 bales as of July 20, down from 98,838 bales previously, reflecting the continued tightening of deliverable US cotton supplies.
Overall, cotton benefited from higher energy prices, weather concerns and continued Chinese reserve buying, but the exceptionally light trading volume suggests the rebound still lacks strong confirmation. Traders will continue to watch US export demand, weather developments in key producing regions, and upcoming Chinese reserve auctions to determine whether the recovery can be sustained.
This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 79.99 cents per pound (down 0.43 cent), cash cotton at 75.21 cents (up 1.59 cent), the October 2026 at 78.96 cents (up 1.59 cent), the March 2027 contract at 81.38 cents (down 0.36 cent), the May 2027 contract at 82.28 cents (down 0.35 cent), and the July 2027 contract at 82.03 cents (down 0.23 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India boosts export promotion with broader FTA strategy
Wed. 22nd July 2026 (Source: www.fibre2fashion.com/news)
Insights: India is expanding free trade agreements (FTAs) and economic partnership pacts to widen textile and apparel export access.
Promotion will use overseas missions, councils, and district hubs, while FTA provisions address technical barriers and standards transparency.
MSMEs and small exporters are backed by e-commerce export hubs, finance, compliance, logistics support, and courier-export reforms.
India has outlined trade and export-promotion measures to diversify export markets, including expanding its network of Free Trade Agreements (FTAs) and Comprehensive Economic Partnership/Cooperation Agreements (CEPAs/CECAs), and pursuing negotiations with major economies and regions.
The government said FTAs are intended to support sectors including textile, apparel and leather goods by enlarging market access and building on trade complementarities.
The measures include focused promotion through the Export Promotion Mission, Indian Missions overseas, Export Promotion Councils, industry associations and other stakeholders, alongside district and sector-specific export promotion under the Districts as Export Hubs initiative and capacity-building programmes, the Ministry of Commerce & Industry said in a press release.
FTA provisions on Technical Barriers to Trade (TBT) are aimed at improving mutual understanding of standards, technical regulations and transparency measures.
The government also engages trading partners through bilateral, regional and multilateral mechanisms to address non-tariff barriers, including market access issues, sanitary and phytosanitary (SPS) measures, TBT, standards, conformity assessment and regulatory requirements.
For smaller exporters, the government has listed policy and facilitation measures for cross-border e-commerce exports, particularly for micro, small and medium enterprises (MSMEs), startups, artisans and small exporters. The Export Promotion Mission (EPM), launched in 2025, comprises NIRYAT PROTHSAHAN for trade finance access and NIRYAT DISHA for quality, compliance, branding, packaging, market access, logistics, warehousing and trade intelligence.
The 'E-Commerce Export Hub' initiative is being implemented on a pilot basis to create an integrated ecosystem for e-commerce exports by facilitating logistics, customs clearances and other export-related services. Under the District Export Hub initiative, each district is to identify and prioritise 3-5 products or services with viable export potential for targeted interventions, the bureau said.
The government has also cited reforms to simplify courier-mode exports and lower compliance burdens, including Reserve Bank of India relaxation of export reconciliation requirements for small-value exports, removal of the per-consignment value limit for courier exports through notifications dated March 27, 2026 and March 31, 2026, and simplified reverse logistics for re-import of export rejects and returned goods.
Cotton Entrepreneurs Seek Removal of RCM and Minimum Electricity Charges in Madhya Pradesh
Wed. 22nd July 2026, Jayesh Chouhan (Source: www.smartinfoindia.com)
Entrepreneurs Raise Issue of Abolishing RCM and Minimum Charges on Cotton
A meeting of local entrepreneurs was organized during the visit of the State President and Malwa Regional President of Laghu Udyog Bharati to the city. The discussion primarily focused on issues related to the Reverse Charge Mechanism (RCM) applicable to cotton and the minimum charges being levied by the MPEB (Madhya Pradesh Electricity Board).
Office bearers and members of the local unit of Laghu Udyog Bharati welcomed State President Rajesh Mishra and Malwa Regional President Rajendra Dubey upon their arrival. During the subsequent meeting, entrepreneurs inquired about the organization's functioning and its initiatives for the benefit of the industry, while also presenting their key concerns to the State President.
The issue concerning the cotton industry took center stage. Entrepreneurs explained that the RCM system applicable to cotton was causing a significant portion of their working capital to get tied up in GST, thereby adversely affecting industrial operations.
In response, State President Rajesh Mishra stated that this matter would soon be placed before the GST Council, and necessary efforts would be made to find a solution. Regarding the minimum charges levied by the electricity company, he mentioned that the organization was already actively pursuing the matter and promised to raise it again forcefully with the concerned senior officials.
The State President elaborated on the functioning of Laghu Udyog Bharati, the importance of the organization, and the work undertaken for the welfare of the industrial sector.
During the meeting, the Sendhwa unit of Laghu Udyog Bharati was also reconstituted. Ankit Agrawal was unanimously appointed as the President of the Sendhwa unit, and Nilesh Agrawal was appointed as the Secretary.
At the conclusion of the meeting, members of the Sendhwa unit expressed their gratitude to the State President for the organization's efforts to resolve tax-related issues concerning cotton.
Prominent attendees included Media In-charge Durgesh Sharma, former President Suresh Bagrecha, Joint Secretary Sharad Goyal, Girdharilal Goyal, Narendra Mittal, Mukesh Shekhawat, Shivam Joshi, Rajkumar Mangal, Harpalsingh Chhabra, Hemant Sharma, Nilesh Tayal, and Gopal Goyal, along with other entrepreneurs.
India Strengthens Global Cotton Position, Ranks Second in Production and Consumption
Wed. 22nd July 2026, Jayesh Chouhan (Source: www.smartinfoindia.com
India's Cotton Sector Strengthening Its Position in the Global Market
New Delhi: India is continuously strengthening its position in the global cotton industry. India ranks first in the world in terms of cotton cultivation area, while it is the second-largest country in terms of both cotton production and consumption.
India's cotton production for the year 2025-26 is estimated at 290.91 lakh bales, while domestic consumption is projected to reach 328 lakh bales. India contributes approximately 19% to global fiber production. Meanwhile, in 2024-25, India's share in global cotton exports stood at approximately 3.37% by value, amounting to around US$ 11.49 billion.
India is the only country in the world where all four recognized species of cotton are cultivated. These include Gossypium arboreum and Gossypium herbaceum (Asian cotton), Gossypium barbadense (Egyptian, Sea Island, and Peruvian cotton), and Gossypium hirsutum (American or Upland cotton)
Cultivation Spanning Three Agro-Ecological Zones
Cotton is a Kharif and semi-xerophytic crop, primarily cultivated in tropical and subtropical regions. Optimal growth requires temperatures between 21–27°C, at least 210 frost-free days, and rainfall ranging from 50–100 cm.
Well-drained black (Regur) soil and alluvial soil are considered the most suitable for cotton cultivation. Cotton cultivation in India spans three agro-ecological zones across nine major states:
Northern Zone: Punjab, Haryana, and Rajasthan
Central Zone: Gujarat, Maharashtra, and Madhya Pradesh
Southern Zone: Telangana, Andhra Pradesh, and Karnataka
Major Challenges Facing the Cotton Sector
Low productivity is a key challenge for India's cotton sector. Factors such as erratic rainfall, drought conditions, and the fact that approximately 67% of the cotton area relies on rain-fed farming impact production capacity.
Additionally, infestations of the pink bollworm and other pests lead to crop losses and increase costs for farmers.
Price volatility in the cotton market, limited market infrastructure, and income-related risks affect farmers. Meanwhile, the limited production of Extra-Long Staple (ELS) cotton and inconsistencies in fiber quality pose challenges to India's export competitiveness.
By enhancing productivity, producing higher-quality cotton, and adopting modern agricultural techniques, India can further strengthen its role in the global cotton supply chain.
El Niño May Boost Cotton Cultivation in India, Offering Temporary Relief to Textile Industry
Wed. 22nd July 2026, Jayesh Chouhan (Source: www.smartinfoindia.com)
Rise in Cotton Cultivation Expected Amidst El Niño; Textile Industry Gets Temporary Relief
New Delhi: The prospect of below-normal rainfall due to El Niño is being viewed as a positive sign for the Indian cotton sector. Experts believe that in conditions of scanty rainfall, farmers may prioritize cotton cultivation over water-intensive crops, potentially offsetting the initial shortfall in sowing.
According to the Ministry of Agriculture, cotton sowing covered 92.53 lakh hectares across the country by July 17, marking a 5.96% decline compared to the 98.39 lakh hectares recorded during the same period last year. While sowing has decreased in Maharashtra and Gujarat, increases have been noted in Telangana and Andhra Pradesh.
L.K. Gupta, Chairman and Managing Director of the Cotton Corporation of India (CCI), stated that if rainfall remains limited, farmers will be more inclined towards cotton cultivation, as the crop can yield well even with relatively less water. He expressed confidence that the availability of raw cotton for the domestic textile industry would remain adequate. He added that the CCI is working to supply cotton directly to mills to keep prices in check and ensure farmers receive better returns.
The government has waived the approximately 11% import duty on raw cotton until October 2026. This move is expected to ensure the availability of raw material until the arrival of the new domestic crop and alleviate price pressure on textile products.
However, industry experts have advised caution regarding global risks. According to Raja M. Shanmugham, former President of the Tirupur Exporters Association, the impact of El Niño is not limited to India alone. If production declines in major cotton-producing nations, global supplies could be disrupted, leading to a rise in raw material prices. In such a scenario, the CCI’s buffer stock and timely supply would prove crucial for the industry. According to data from the Directorate General of Foreign Trade (DGFT), India's raw cotton imports rose by 54.9% to reach $1.89 billion in the 2025-26 fiscal year (FY26), while exports declined by 33.9% to $436.37 million. Although the situation in the domestic market remains stable, the impact of El Niño on global cotton supplies will continue to be a key factor to watch.
India’s White Gold: Cotton Powering Farm-to-Fabric Growth
Wed. 22nd July 2026, Yash Chouhan (Source: www.smartinfoindia.com)
India's White Gold: Weaving Prosperity from Farm to Fabric
From the cotton fields of India to wardrobes across the world, cotton weaves together agriculture, industry, trade, and livelihoods. Often called "White Gold," cotton is among India's most important commercial crops, supporting nearly 6 million farmers and providing employment to 40–50 million people across processing, textiles, and trade. India contributes about 23% of global cotton fibre production, making cotton a cornerstone of the country's rural economy and export sector.
India's association with cotton dates back thousands of years, when its textiles were prized across Asia and Europe. During the Swadeshi movement, cotton became a symbol of self-reliance, and today it continues that legacy under the vision of Atmanirbhar Bharat. India is the only country cultivating all four recognised cotton species and ranks first globally in cotton cultivation area and second in production and consumption, producing nearly 291 lakh bales in 2025–26.
Cotton cultivation is concentrated across eleven states, with nearly 62% grown under rain-fed conditions. Beyond fibre, cottonseed provides edible oil, livestock feed, biomass fuel, and surgical cotton, making the crop valuable far beyond the textile industry.
The Government has adopted a multi-pronged strategy to strengthen the sector. The Minimum Support Price (MSP) ensures remunerative returns, while the Cotton Corporation of India (CCI) procures cotton whenever market prices fall below MSP. During the 2025–26 season, CCI procured over 105 lakh bales worth ₹41,530 crore, benefiting millions of farmers.
To raise productivity, the Mission for Cotton Productivity aims to develop climate-resilient, pest-resistant, and high-yielding varieties, with special emphasis on Extra Long Staple (ELS) cotton. Complementing this, demonstrations under the National Food Security Mission have recorded significant yield gains through improved planting technologies.
Digital initiatives such as the Kapas Kisan App have made MSP procurement transparent and farmer-friendly by enabling online registration, slot booking, and Aadhaar-linked payments. Meanwhile, Kasturi Cotton Bharat is positioning Indian cotton as a premium global brand through certification, blockchain-enabled traceability, and quality assurance.
India also remains an important player in global cotton trade, exporting fibre, yarn, fabrics, and garments to major markets, including the United States, Bangladesh, and Sri Lanka.
Rooted in history yet driven by innovation, India's cotton sector continues to evolve through better technology, stronger policy support, and improved market access. From farm to fabric, cotton remains a vital thread connecting millions of livelihoods while strengthening India's agricultural economy and global textile leadership.
BKMEA, Swaniti propose Indo-Bangla textile decarbonisation alliance
Wed. 22nd July 2026 (Source: www.fibre2fashion.com/news)
Insights: Bangladesh's BKMEA and India's Swaniti Initiative recently mulled over setting up an Indo-Bangla Textile Decarbonisation Alliance to accelerate supply chain decarbonisation.
The alliance envisions fostering knowledge exchange among industry associations, developing bankable green projects, strengthening capacity building and technology collaboration, and showcasing regional best practices.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and New Delhi-headquartered Swaniti Initiative recently mulled over setting up a South Asia regional platform, tentatively titled the Indo-Bangla Textile Decarbonisation Alliance (IBTDA), to accelerate supply chain decarbonisation through strategic partnerships and regional collaboration.
Swaniti Initiative is a social enterprise that aims at catalysing the delivery of public services to socio-economically marginalised groups.
The proposed alliance envisions fostering peer-to-peer knowledge exchange among industry associations, developing bankable green projects for multilateral development banks, strengthening capacity building and technology collaboration, and showcasing regional best practices on global platforms, BKMEA said in a post on LinkedIn.
INNOVATIVE TEXTILE RECYCLING TECHNOLOGIES
Tue. 21st July 2026 (Source: www.pib.gov.in)
In the Union Budget 2026–27, the Union Finance Minister announced the "Tex-Eco Initiative" to promote a globally competitive and sustainable textile and apparel sector. The initiative aims to support innovative technologies for the circular economy, including textile waste management, recycling, and value addition, as well as the development of recycled fibres, new materials, sustainable packaging, and other high-value products from discarded textiles, in collaboration with research institutions, Textile Research Associations, Centres of Excellence, industry, start-ups, and other relevant stakeholders.
Further, the government in view of the growing global importance of environmentally sustainable production practices including green technology adoption, recycling and waste reduction, and their anticipated benefits in terms of enhanced global competitiveness, improved market access, enhanced environmental & economic resilience, and strengthened investor confidence, a number of initiatives have been taken:
i. The Government has been facilitating a series of pilot projects across the country to raise awareness and build capacity on global best practices of sustainable production & consumption with focus on subjects such as:
· A project titled “Eliminating Hazardous Chemicals from Textile Fashion Supply Chain” in partnership with UNIDO and supported by Global Environment Facility (GEF) to eliminate hazardous chemicals from the apparel fashion supply chain in India while promoting sustainable practices aimed at reducing environmental impacts particularly in terms of energy and waste use, and greenhouse gas emissions.
· ‘Accelerating the Transition of the Indian Textile Sector towards Circularity’ (In-Tex India) being implemented in collaboration with UNEP, focuses on scaling circular business models by leveraging Life Cycle Assessment (LCA) and Product Environmental Footprint (PEF) methodologies.
ii. Under the National Technical Textiles Mission (NTTM), several research and development (R&D) projects have been sanctioned with a focus on environmentally sustainable technologies and materials.
iii. The PM Mega Integrated Textile Region and Apparel Parks are designed as a world-class industrial ecosystem to build resilient infrastructure, promote sustainable industrialization and foster innovation.
iv. In order to mitigate effects of increasing textile waste, Government has undertaken number of activities including signing of an MoU among Textile Committee, Standing Conference of Public Enterprises (SCOPE) and the Government e-Marketplace (GeM) to promote the use of upcycled products in Government procurement.
v. Further, the Ministry has released the report "Mapping of Textile Waste Value Chain in India" which provides a comprehensive assessment of textile waste generation, recovery pathways, recycling technologies and opportunities to strengthen circularity across India’s textile value chain.
The Government's approach combines support for technology development, research and innovation, to strengthen demand for sustainable and recycled textile products. Together, these are aimed at improving resource efficiency and environmental performance across the textile value chain while enhancing the global competitiveness of Indian textiles and apparel.
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA MARGHERITA in a written reply to a question in Lok Sabha today.
TEXTILE INDUSTRY
Tue. 21st July 2026 (Source: www.pib.gov.in)
India’s exports of textiles and apparel, including handicrafts, stood at ₹3,25,339.0 crore in 2025–26, registering a growth of 1.8 per cent over ₹3,19,573.2 crore in 2024–25, despite fluctuations in global demand, variations in input costs and other trade-related challenges. India’s exports of textiles and apparel, including handicrafts, recorded growth in more than 100 export destinations during 2025–26 compared with the previous year.
Exports of textiles and apparel, including handicrafts, from Madhya Pradesh stood at ₹11,751.7 crore in 2025–26, compared with ₹11,748.9 crore in 2024–25. Exports from Bihar stood at ₹409.0 crore in 2025–26, compared with ₹375.6 crore in 2024–25.
The Government has implemented various schemes and initiatives to promote the growth of the Indian textile and apparel sector. The major schemes and initiatives include the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme; Production Linked Incentive (PLI) Scheme; National Technical Textiles Mission; SAMARTH—Scheme for Capacity Building in the Textile Sector; Silk Samagra-2; National Handloom Development Programme; National Handicrafts Development Programme; Comprehensive Handicrafts Cluster Development Scheme; Rebate of State and Central Taxes and Levies (RoSCTL) Scheme; Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme; Export Promotion Mission (EPM), comprising Niryat Protsahan and Niryat Disha; and the Credit Guarantee Scheme for Exporters (CGSE).
The Government of India also launched RELIEF (Resilience and Logistics Intervention for Export Facilitation) on 19 March 2026 under the Export Promotion Mission to support exporters affected by disruptions arising from the conflict in West Asia/Middle East and maritime challenges in the Gulf region. The Government has also exempted import of Cotton falling under Customs Tariff Heading 5201 from 1 June to 31 October 2026 to augment the domestic availability of cotton.
India's sixteen Free Trade Agreements (FTAs), including the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA), are already in force. In addition, negotiations for an FTA with the European Union were successfully concluded, while India has signed an FTA with New Zealand. These agreements provide opportunities for the Indian textile and apparel sector to expand exports and diversify into new markets.
The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme, operational since March 2019, provides for the rebate of embedded State and Central taxes and levies on the export of garments and made-ups, with a view to enhancing the competitiveness of these sectors. The Scheme has been extended for a further period of six months, up to 30 September 2026, to ensure policy predictability and stability for exporters in these sectors. The Remission of Duties and Taxes on Export Products (RoDTEP) Scheme has also been extended for a further period of six months, up to 30 September 2026.
These initiatives are aimed at ensuring sustainable growth, generating employment across the textile value chain, promoting value addition, strengthening supply-chain resilience and enhancing the global competitiveness of the Indian textile industry. The textile and apparel industry in Bihar, including in the Khagaria and Samastipur parliamentary constituencies, as well as in Madhya Pradesh, also benefit from these schemes and initiatives.
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA MARGHERITA in a written reply to a question in Lok Sabha today.
