Cotlook Index: 11-09-2026
98.20 (+1.00)
Cotlook Index: 14-09-2026
96.15 (-2.05)
India, MERCOSUR move towards wider preferential trade pact
Tuesday, 15th Sep 2026, (Source: www.fibre2fashion.com)
Insights: India and MERCOSUR have launched negotiations to expand their existing Preferential Trade Agreement and are finalising terms of reference for the wider pact. A new protocol gives electronic Certificates of Origin the same legal value as paper documents. The changes aim to cut transaction costs, speed origin checks and improve preferential trade.
India and MERCOSUR have launched negotiations to expand their Preferential Trade Agreement (PTA), a move intended to widen the current pact into areas of mutual interest and create greater benefits and opportunities for the private sectors on both sides. The announcement was made by India’s Minister of Commerce and Industry Piyush Goyal and Uruguay’s Minister of Foreign Affairs Mario Lubetkin, who was acting in the exercise of the Pro Tempore Presidency of MERCOSUR. India and MERCOSUR are also finalising the Terms of Reference that will define the scope and structure of the proposed expanded agreement, India's Ministry of Commerce & Industry said in a press release. Alongside the launch of expansion talks, India and MERCOSUR signed the First Additional Protocol to the PTA to facilitate acceptance of electronic Certificates of Origin, marking a step towards paperless trade and modernised customs procedures between India and MERCOSUR countries. The protocol was signed by Rajesh Agarwal, commerce secretary, Government of India; Alberto Guani, Ambassador of Uruguay to India; and Fleming Raul Duarte Ramos, Ambassador of Paraguay to India. It was signed in the presence of Mario Lubetkin, in the exercise of the Pro Tempore Presidency of MERCOSUR, and representatives from the embassies of Argentina and Brazil. The release said the First Additional Protocol amends Article 16 of Annex III, covering Rules of Origin, of the PTA. Under the amendment, Certificates of Origin issued in electronic format will have the same legal validity and identical value as certificates issued in paper format. The electronic certificates must be issued and electronically signed under the respective domestic legislation of the parties by duly authorised entities and officials.
The measure is expected to support the shift towards digital and paperless trade documentation, reduce transaction costs and processing time linked to the issuance and verification of Certificates of Origin, and improve the efficiency of preferential trade under the existing India-MERCOSUR PTA. The initiative follows discussions in the Joint Administrative Committee of the India-MERCOSUR PTA. At its fourth meeting held on November 27, 2025, both sides supported updating the agreement to enable the use of digital Certificates of Origin. The proposal for the Additional Protocol was later adopted by mutual consent at the fifth meeting of the Joint Administrative Committee held on April 9, 2026, the Commerce Ministry said in another release.
The protocol will enter into force after India and the MERCOSUR parties complete their respective internal procedures and notify each other. The signing underscored the commitment of India and MERCOSUR to deepen trade facilitation, adopt modern customs practices and strengthen the institutional framework supporting bilateral trade. The India-MERCOSUR PTA was signed on January 25, 2004, and entered into force on June 1, 2009. The agreement provides preferential tariff concessions on 450 tariff lines by India and 452 tariff lines by the MERCOSUR side.
India's WPI rises to 9.92%, textile inflation at 12.63%
Monday, 14th Sep 2026, (Source: www.fibre2fashion.com)
Insights: India's all-commodity WPI inflation rose to 9.92 per cent YoY in August 2026 from 9.78 per cent in July, with the index at 110.8. Manufacture of textiles inflation eased to 12.63 per cent from 12.80 per cent, while apparel stood at 3.12 per cent. Fuel, food products, basic metals, non-food articles and chemicals were key price drivers, affecting sourcing cost visibility.
India's all-commodity Wholesale Price Index (WPI) inflation edged up to 9.92 per cent year on year (YoY) in August 2026 from 9.78 per cent in July 2026, while the all-commodities index rose to 110.8 from 110.0, according to provisional government estimates. For textile and apparel supply chains, the manufacture of textiles index increased to 104.3 in August from 104.0 in July, with YoY inflation at 12.63 per cent against 12.80 per cent. The manufacture of wearing apparel index moved to 112.4 from 111.6, while YoY inflation eased to 3.12 per cent from 3.33 per cent, the data showed. YoY inflation in the three major WPI groups stood at 7.76 per cent for Primary Articles, 22.93 per cent for Fuel and Power, and 8.37 per cent for Manufactured Products in August. Their respective July rates were 8.52 per cent, 20.05 per cent and 8.29 per cent. The August indices were 118.1 for Primary Articles, 108.3 for Fuel and Power and 108.8 for Manufactured Products, compared with 117.2, 105.4 and 108.4 in July, the Ministry of Commerce & Industry said in a press release. Across groups, the release identified mineral oils, containing petroleum products, food articles, manufacture of food products, manufacture of basic metals, non-food articles and manufacture of chemicals and chemical products as the major drivers of WPI inflation in August 2026. Among cost heads relevant to apparel and textile manufacturing, non-food articles recorded an August index of 113.3, up from 112.6 in July, while YoY inflation eased to 14.79 per cent from 17.66 per cent, the data showed. Leather and related products rose to an index of 109.7 from 109.4, with inflation at 4.48 per cent against 4.59 per cent. Chemicals and chemical products rose to 103.9 from 102.6, while rubber and plastic products rose to 107.4 from 106.3. Manufacture of basic metals, one of the identified inflation drivers, had a WPI weight of 8.41133 and an August index of 100.9, down from 102.2 in July, according to annexure data in the release. Manufacture of chemicals and chemical products had a weight of 6.12567, manufacture of textiles carried a weight of 4.08993, manufacture of wearing apparel had a weight of 1.32948, and leather and related products had a weight of 0.54137. The Fuel and Power increase was led by mineral oils, whose index climbed to 118.4 from 113.2 and whose YoY inflation increased to 38.48 per cent from 32.40 per cent, the release said. Crude petroleum and natural gas inflation rose to 34.41 per cent from 26.99 per cent, with the index at 120.3 against 114.8. Coal and lignite inflation turned positive at 1.57 per cent from minus 0.56 per cent, while electricity inflation moved to minus 1.73 per cent from 1.09 per cent. The WPI Food Index, with a weight of 24.99 per cent, recorded YoY inflation of 7.05 per cent in August, compared with 6.65 per cent in July, according to the release. Its index was 118.5 in August against 117.1 in July. Food articles inflation stood at 5.67 per cent against 5.44 per cent, and manufacture of food products inflation rose to 9.65 per cent from 8.89 per cent. The final WPI index for June 2026 was revised to 110.3 from the provisional estimate of 110.2, and June WPI inflation was revised to 9.97 per cent from 9.87 per cent, the release said. The final estimate for June was compiled with a weighted response rate of 99.3 per cent, while the August provisional estimate used an 84.4 per cent weighted response rate.
India prioritises textiles to help drive trade with Russia to $100 bn
Sunday, 13th Sep 2026, (Source: www.fibre2fashion.com)
Insights: Piyush Goyal said India has put textiles among five focus areas to lift India-Russia trade to $100 billion by 2030, with a $50 billion two-way investment aim. The plan means adding $40 billion from a $60 billion base in four years, requiring more than double-digit annual growth. Exporters are being asked to flag payment, logistics, certification, standards and visa barriers.
India has identified textiles among the priority sectors for expanding trade with Russia as the two countries pursue a bilateral trade target of $100 billion by 2030, a development relevant for exporters seeking to diversify demand and manufacturers assessing market access in Russia.
Indian Commerce and Industry Minister Piyush Goyal listed textiles, engineering goods, chemicals, pharmaceuticals and food products as the key areas for accelerating India-Russia commerce. He was addressing the India-Russia Business Dialogue in New Delhi along with Russian Industry and Trade Minister Anton Alikhanov. Goyal said the leadership of the two countries has set a target of $100 billion in bilateral trade and $50 billion in two-way investments adding that the current trade complementarity remains underused because several products that Russia imports in large volumes are also products in which India is a major global exporter, though not yet a major supplier to Russia. He also observed that moving from a $60 billion base to the $100 billion goal would require an additional $40 billion over the next four years adding that this would need more than double-digit year-on-year growth and co-ordinated effort from both governments and businesses. Goyal also cited stronger Indian food shipments to Russia as evidence of market potential. He said Indian farmers and micro, small and medium enterprise exporters are seeing rising demand in Russia, while only a small part of the opportunity has been captured so far. For textile and apparel exporters, payment and compliance issues remain central to any expansion. Goyal further said that India and Russia would continue to strengthen local-currency settlement mechanisms, noting that payment friction can slow trade more than tariffs.
He also urged Russian companies to consider manufacturing in India rather than only selling into the Indian market, adding that the Indian industry should look at Russia both as an export destination and an investment market. Goyal asked officials from both sides to work with industry to identify obstacles affecting trade and investment, including payment systems, logistics, certificate requirements, approvals, standards and visas.
Barwani Cotton Crop Submerged After Rain
Tuesday, 15th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Barwani: 100 acres of cotton crop submerged due to rain; farmers seek compensation
Barwani. While the long-awaited rainfall brought relief to many, it became a source of trouble for farmers in the Anjad region. Following overnight rain, water levels rose to nearly two feet in several fields across the area. Standing cotton crops have been submerged, and farmers fear crop damage across more than 100 acres.
Waterlogging raises farmers' concerns
Farmer Kamal Singh Solanki stated that if the water does not drain from the fields within two to three days—followed by intense sunlight—the risk of the cotton crop perishing will increase significantly. According to the farmers, a large portion of the cotton crop has been affected by the waterlogging; however, the actual extent of the loss can only be assessed following an official administrative survey.
Four months of hard work at risk
Farmer Anshul Patidar mentioned that he owns approximately 40 acres of land near the road. The cotton crop had matured after four months of hard work, but the accumulation of rainwater in the fields has put the crop at risk of ruin. Farmers state that given their existing financial struggles, the loss of the crop would result in a massive financial blow.
Water accumulation due to lack of drainage
According to the farmers, rainwater flowing from the hilly areas passes through these specific fields. Due to inadequate drainage facilities, the water is pooling in the fields. Farmers allege that the traditional drainage path has been blocked by encroachments, leading to the current waterlogging situation.
Demand for survey and compensation
The farmers have demanded that the administration conduct an immediate survey of the crop damage, provide appropriate compensation, and establish a permanent drainage system. They insist that the traditional drainage route be kept open to prevent future water accumulation in the fields. For now, the farmers are awaiting the administration's survey. It will become clear in the coming days how long it takes for the water to recede and the extent of the damage to the cotton crop.
Scanty Rainfall Raises Concerns for Cotton and Paddy Farmers in Telangana’s Nalgonda
Monday 14th Sep 2026, Anand Lodhi, (Source: www.smartinfoindia.com)
Scanty rainfall raises concerns for cotton and paddy farmers in Telangana's Nalgonda. Nalgonda, Telangana: Farmers in the district are increasingly concerned due to a prolonged lack of adequate rainfall and rising temperatures. The rainfall deficit and mounting pressure on water availability are impacting Kharif crops such as cotton and paddy. Given the weather conditions and the potential impact of El Niño, farmers had been advised to select crops based on water availability. Officials had emphasized promoting the cultivation of low-water-consuming crops—such as red gram (arhar), black gram (urad), and green gram (moong)—instead of water-intensive crops like paddy and cotton. Farmers have also been urged to limit the area under paddy cultivation due to water scarcity. According to a report dated August 8, 2026, farmers in the district had already begun cultivating alternative crops instead of paddy across approximately 33,000 acres. A target had been set to expand this area to 1.5 lakh acres. The situation remains challenging for cotton farmers in rain-fed areas as well. A prolonged dry spell can deplete soil moisture, potentially hindering cotton growth and yield. The situation could prove particularly difficult for farmers lacking adequate irrigation facilities. Adequate water is also essential for paddy cultivation. If water levels in reservoirs and other irrigation sources remain low, farmers may have to rely on supplementary irrigation to save their crops, which could drive up cultivation costs. Under current circumstances, upcoming rainfall is crucial for farmers in Nalgonda. If rainfall does not improve, the productivity of Kharif crops—including cotton and paddy—is likely to face significant pressure.
Cotton Season Begins, Muhurat Prices Rise
Monday, 14th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Cotton Season Kicks Off in the Market; 'Muhurat' Purchase Prices Reach ₹8,575
Major news has emerged from the cotton market today. The cotton season has commenced with the arrival of the new crop. Significant market activity was observed as 'Muhurat' (auspicious inaugural) purchases began at the ginning mills in Dharangaon.
'Muhurat' for New Cotton at Shreeji Ginning, Dharangaon
The auspicious inaugural trading for new cotton took place today at Shreeji Ginning, Dharangaon. Approximately 1,000 quintals of new cotton arrived, and the price opened at ₹8,553 per quintal.
Trading also took place in cotton seeds; two truckloads were sold to Gujarat at a rate of ₹5,101 per quintal.
This information was provided over the phone by broker Sohanlal-ji from Burhanpur.
Key 'Muhurat' Prices in Dharangaon
Mahavir Fibers: 15 bales — ₹8,575
Jogeshwari Ginning: 150 bales — ₹8,571
Mahavir Cotton: 100 bales — ₹8,571
Shreeji Ginning: ₹8,553
New Arrivals in Amravati
An arrival of approximately 500 quintals of new cotton was recorded at Sagraj Cotton, Amravati. The price stood at ₹8,100 per quintal.
'Narma' (Soft Cotton) Price in Abohar
The price for 'Narma' cotton was recorded at ₹8,861 per quintal at Balchand Cotspin, Abohar. Key Prices Today
Dharangaon Mahavir Fibers — ₹8,575
Dharangaon Jogeshwari Ginning — ₹8,571
Dharangaon Mahavir Cotton — ₹8,571
Dharangaon Shreeji Ginning — ₹8,553
Amravati Sagraj Cotton — ₹8,100
Abohar Balchand Cotspin Narma — ₹8,861
Cotton Seed, Gujarat — ₹5,101
The cotton season has commenced with the arrival of the new crop and ceremonial purchases (Muhurat buying). Farmers and traders will be closely watching the market's direction as arrivals increase in the coming days.
CCI's cotton sales reached 94.27 lakh bales in the 2025-26 season.
Saturday, 12th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
State-wise CCI Cotton Sales Details – 2025-26 Season
The Cotton Corporation of India (CCI) kept its cotton candy prices unchanged during this week . CCI has sold approximately 94,27,700 cotton bales for the 2025-26 season. Sales are
highly concentrated in a few major cotton-producing states, Maharashtra, Telangana and Gujarat emerging as the leading contributors.
Sales amount to 2,835,700 bales in Maharashtra,
2,428,400 bales in Telangana,
1,775,000 bales in Gujarat,
710,800 bales in Karnataka,
566,400 bales in Madhya Pradesh,
328,700 bales in Rajasthan,
282,200 bales in Andhra Pradesh,
269,500 bales in Odisha,
185,500 bales in Haryana,
45,200 bales in Punjab,
and 300 bales in West Bengal.
Saturday, 12th Sep 2026, Anand Lodhi, (Source: www.smartinfoindia.com)
Cotton acreage in Maharashtra drops by 10% due to delayed monsoon
Maharashtra: The delay in the monsoon and a lack of early rainfall have impacted cotton sowing in Maharashtra. In the country's largest cotton-producing state, the cotton acreage for this Kharif season has declined by approximately 10% to 38.4 lakh hectares. The state's average cotton sowing area over the past five years has been 42.5 lakh hectares; consequently, there has been a reduction of about 4 lakh hectares. Maharashtra accounts for approximately 38% of India's total cotton area. Cotton is a major Kharif crop for the state, representing about 30% of the total 1.4 crore hectares of Kharif cultivation area. The reduction in sowing area has raised concerns regarding overall production and yield. The delayed monsoon has had the most significant impact on the Nashik division. In this division—comprising the districts of Jalgaon, Dhule, Nandurbar, and Nashik—cotton sowing has dropped to 7.48 lakh hectares from an average of 9.30 lakh hectares. This represents a decline of approximately 1.82 lakh hectares, or more than 24%. In Jalgaon specifically, cotton acreage has fallen from an average of 5.5 lakh hectares to 4.3 lakh hectares. A decline of approximately 22% in cotton sowing has also been recorded in the Chhatrapati Sambhajinagar division. In this division—comprising the districts of Chhatrapati Sambhajinagar, Jalna, and Beed—cotton has been sown on about 8 lakh hectares, compared to an average of 10.3 lakh hectares. In contrast, cotton sowing remained normal in the Amravati division. In the districts of Buldhana, Akola, Washim, Amravati, and Yavatmal, cotton was sown on an area comparable to the average of 10.9 lakh hectares. According to agricultural officials, rainfall distribution during the sowing period was better in these areas. However, farmers in several cotton-growing regions are now concerned about crop growth due to the absence of rainfall over the past two weeks. Laxman Patil, a farmer from Dhule, said that the cotton crop needs good rainfall in the coming days. A lack of rain could affect the crop and lead to a decline in yield.
