Cotlook Index: 22-09-2026
93.65 (+2.30)
India's textile growth hinges on value addition & automation
Wednesday, 23rd Sep 2026, (Source: www.fibre2fashion.com)
Insights: SIMA says India's textile industry needs higher-value products, automation and diversification to strengthen global competitiveness. Palanisamy urged investment in man-made fibres, technical textiles, recycled and sustainable products to tap export opportunities and FTAs.
Cotton price volatility remains a constraint, with cotton making up 65–70 per cent of yarn manufacturing costs.
India’s textile industry needs to move beyond capacity expansion and focus on higher-value products, automation and diversification to strengthen its global competitiveness, according to Southern India Mills’ Association (SIMA) chairman Durai Palanisamy. He said investment across man-made fibres, technical textiles and recycled products would help the industry make better use of emerging export opportunities.Although India’s textile sector has traditionally been built around natural fibres, particularly cotton, changes in global demand call for a stronger presence across the value chain, Palanisamy said in a statement issued after SIMA’s annual general meeting in Coimbatore on September 22.He urged manufacturers to improve productivity through advanced technology and innovation while expanding into sustainable and value-added products. Market diversification would also help the industry benefit from opportunities arising from India’s free trade agreements, he said. Volatile cotton prices remain a constraint for mills considering such investments. Cotton accounts for around 65–70 per cent of yarn manufacturing costs, according to Palanisamy. He called for measures to curb speculation in raw material prices and urged the government to consider permanently removing the 11 per cent cotton import duty. He also proposed changing the Cotton Corporation of India’s role to place greater emphasis on maintaining price stability. Palanisamy welcomed recent policy measures affecting the sector, including changes to quality control orders, revisions to the production-linked incentive scheme and export support. He said sustained attention to raw material costs, technology and product development would be important for the industry’s next phase of growth. Palanisamy, executive director of Pallava Textiles, was unanimously re-elected SIMA chairman for 2026–27 at the association’s 67th annual general meeting. S Krishnakumar was re-elected deputy chairman and K Sivaraj vice-chairman.
India's FY27 GDP growth forecast raised to 7% from 6.6%: S&P Global
Wednesday, 23rd Sep 2026, (Source: www.fibre2fashion.com)
Insights: S&P Global raised India's FY27 GDP growth forecast to 7 per cent from 6.6 per cent, citing stronger-than-expected industrial activity, consumption, exports and government investment. It expects growth to moderate in the second half of the fiscal year as GST rationalisation and tax-cut benefits fade, while forecasting average consumer inflation of 5.1 per cent and a 25-basis-point RBI rate hike
S&P Global has raised its forecast for India’s GDP growth in fiscal 2026-27 to 7 per cent from 6.6 per cent, citing stronger-than-expected growth in the June quarter driven by robust industrial activity, healthy consumption, strong goods exports and accelerating government investment.
In its report, Economic Outlook Asia-Pacific Q4 2026: Exports, Domestic Demand Will Shore Up Growth, the agency said growth in the first quarter exceeded its expectations, prompting the upward revision for the fiscal year ending March 31, 2027. S&P Global expects growth to moderate in the second half of FY27 as the boost from Goods and Services Tax (GST) rationalisation and income-tax cuts fades. It also flagged weather conditions as a key risk, noting that cumulative rainfall was 15 per cent below normal as of September 9 during the current monsoon season. Agricultural output and food inflation will therefore remain important variables to monitor, the agency said. On monetary policy, S&P Global expects conditions to increasingly favour higher interest rates, citing solid economic growth, persistent inflationary pressures, the unresolved conflict in West Asia and weather-related risks.The agency expects consumer inflation to average 5.1 per cent in FY27 and forecasts the Reserve Bank of India to raise its policy rate by 25 basis points during the fiscal year.
ICE cotton eases after sharp rally as export demand weighs
Wednesday, 23rd Sep 2026, (Source: www.fibre2fashion.com)
Insights: ICE cotton futures settled lower as traders weighed Monday's sharp rise, with volume easing to 52,195 contracts. US upland export sales fell 4 per cent week on week to 71,231 bales, while shipments dropped around 20 per cent to 142,076 bales. China's State Reserve auction sold all 8,049.53 tonnes offered, but the CC Index 3128B and Zhengzhou's January contract eased.
ICE cotton futures settled lower yesterday as traders assessed whether Monday’s sharp rise marked a sustained recovery. Trading volume declined, while weak US export sales and advancing harvest activity kept the market cautious. The most active December 2026 contract fell 55 points, or 0.66 per cent, to 82.87 cents per pound. The December contract gave back part of Monday’s 227-point gain but traded largely within the previous session’s range. Active futures contracts closed 16–55 points lower, offering little confirmation of a fresh direction.Trading volume fell to 52,195 contracts from 65,634 on Monday and was below last week’s daily average of 63,340. The quieter session suggested traders were waiting for further evidence before adding positions after Monday’s rebound. Demand remained a concern. US Upland cotton export sales for the week ended September 10 stood at 71,231 bales, down 4 per cent from the previous week and about 30 per cent below the four-week average. Upland shipments totalled 142,076 bales, around 20 per cent lower week on week. Direct sales to China were limited, despite shipments to the country of approximately 24,437 bales. China’s physical market presented a mixed picture. All 8,049.53 tonnes offered at Tuesday’s State Reserve auction were sold at an average price of 16,635 yuan ($2,479) per tonne. Cumulative sales reached 382,568.97 tonnes out of 385,675.94 tonnes offered by September 22, a sell-through rate of 99.19 per cent. Domestic Chinese cotton prices nevertheless eased. The CC Index 3128B fell 33 yuan ($4.92) to 17,414 yuan ($2,595) per tonne, while the 2129B index slipped 23 yuan ($3.43) to 17,754 yuan ($2,646) per tonne. Zhengzhou’s January cotton contract declined 35 yuan ($5.22) to 15,705 yuan ($2,341) per tonne.
Weaker crude oil, corn and soybean prices added to the cautious tone. Lower oil prices can reduce polyester production costs, potentially strengthening the synthetic fibre’s price competitiveness against cotton.
The market’s next test is whether buying emerges near 82 cents per pound and whether the December contract can regain and hold above 83 cents. Traders will also watch US export demand and incoming harvest data for clearer signals on supply, yield and quality.
This morning (Indian Standard Time), December 2026 cotton was trading at 82.95 cents per pound, up 0.08 per cent. Cash cotton was trading at 80.37 cents (unchanged), while the October 2026 contract traded at 79.69 cents (unchanged). The March 2027 contract was at 85.59 cents (up 0.02 cent), May 2027 at 87.17 cents (down 0.03 cent), and July 2027 at 87.16 cents (down 0.08 cent).
Canada & India aim to conclude trade talks by December
Wednesday, 23rd Sep 2026, (Source: www.fibre2fashion.com)
Insights: Canada and India aim to conclude talks on a comprehensive trade agreement by the G20 summit on December 14-15, with Canadian Prime Minister Mark Carney saying talks are making “good progress.” Indian Prime Minister Narendra Modi is also expected to visit Canada around the summit. The move comes as Canada seeks to diversify trade beyond the US and rebuild economic ties with India.
Canada and India are aiming to conclude negotiations on a comprehensive trade agreement by the G20 summit in December. Canadian Prime Minister Mark Carney, speaking on the sidelines of the United Nations General Assembly (UNGA) meeting, said the talks are making “good progress” and that he and Indian Prime Minister Narendra Modi have committed to try to wrap them up by the G20 summit, adding that Modi is also expected to visit Canada around the time of the summit, according to media reports. The G20 summit is scheduled for December 14-15 at Trump National Doral in Miami. The two countries formally launched negotiations on a comprehensive trade agreement in March and had committed to concluding the talks by the end of 2026. The earlier-than-expected target of the G20 summit could provide a key milestone for businesses planning bilateral trade and sourcing arrangements. For Canada, India is part of a broader effort to expand trade beyond the United States. Carney has set a goal of doubling Canada’s non-US trade over the next decade as Ottawa seeks to diversify its international trade relationships.
The potential agreement could also provide greater market-access opportunities for businesses in both countries, although the final outcome will depend on the terms agreed by the two negotiating teams.
Canada and India have moved to rebuild economic ties following a period of strained diplomatic relations. Carney has since pursued closer ties with India. His visit to India earlier this year was the first bilateral visit by a Canadian prime minister since 2018.
The Canadian government has also been pursuing wider trade diversification, including closer economic ties with Europe and a trade arrangement with China.
Yavatmal Drought Hurts Cotton, Soybean
Wednesday, 23rd Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Drought-like conditions in Yavatmal; soybean and cotton crops affected; farmers seek immediate relief Yavatmal: Drought-like conditions have emerged in Maharashtra's Yavatmal district, particularly in the Pusad tehsil, due to a lack of rainfall. The rainfall deficit has impacted soybean and cotton crops. According to farmers, crops in many fields have been severely affected. The situation arising as early as September has heightened farmers' concerns; they also fear impending crises regarding water, fodder, and employment. Farmer Manish Jadhav stated that the financial condition of farmers has weakened due to crop failures over three consecutive years. He noted that the damage to soybean and cotton crops is creating an employment crisis not only for farmers but also for farm laborers. He mentioned that some laborers are migrating to other regions in search of work. Jadhav demanded immediate relief of ₹1 lakh per hectare—without stringent conditions—and the provision of crop insurance benefits for the affected farmers. Farmer Durgadas Rathod stated that he had spent approximately ₹20,000 to ₹25,000 per acre on soybean cultivation. According to him, the crop damage has made it difficult to even recover the cost of cultivation. He expressed concern regarding household expenses, his children's education, and the arrangement of fodder for livestock. Rathod urged the government to provide compensation to the farmers. Farmer Sachin Sakhre said that the disruption in farming activities is exacerbating the employment crisis for farm laborers. He noted that some families are moving towards cities and industrial areas in search of jobs.Meanwhile, farmer Aditya Jadhav demanded that the administration provide immediate relief and take necessary measures for the affected families. The farmers assert that, given the current situation, financial assistance and crop insurance benefits are essential, rather than mere assurances.
Tiruppur yarn producers seek support from garment units to modify role of CCI
Wednesday, 23 Sep. 2026 (Source: www.apparelviews.com)
The Tirupur Yarn Manufacturers Association has called for support from the garment units in seeking steps by the Union government to change the role of the Cotton Corporation of India (CCI). The China National Cotton Reserves Corporation maintains more than a year’s cotton stock and ensures stability in cotton prices. The CCI should, as such, not only procure cotton from the farmers at Minimum Support Price but also keep stocks and support the textile industry with stable raw material prices, the association said in a memorandum to the Apparel Export Promotion Council (AEPC) and the Tiruppur Exporters Association (TEA). Office-bearers of the Tirupur Yarn Manufacturers Association met A. Sakthivel, chairman of the AEPC, and K.M. Subramanian, president of the TEA, on Saturday. They pointed out that many garment buyers and brands nominate specific ginners for cotton procurement, leaving spinning mills with limited access to credit. The mills make upfront payments to buy cotton from the nominated ginners. However, many garment manufacturers continue to avail of credit from the mills for long durations. This has resulted in a significant working capital imbalance across the textile value chain, it said.
Yarn price is influenced by cotton price that accounts for 65%-70% of yarn manufacturing cost. The steep increase in cotton prices (around 30% in the domestic market and 50% in the international market) reflected in the yarn prices. With international cotton prices softening to 82.17 cents a pound from 91.55 cents a pound, yarn prices also declined to ₹379 a kg from 384 a kg. Further, over 70% spinning mills could not modernise in the recent years as yarn exports were sluggish. Of the 45 million spindle working capacity in the country, over 20 million are more than 10 years old. If the mills do not modernise, there will be shortage of yarn, the yarn manufacturers reasoned. In such a situation, the association sought the support of the garment sector for total removal of the 11% import duty on cotton and modifying the role of the CCI. The garment industry should also ensure timely payments to the spinning mills within the mutually agreed credit terms. “We seek your cooperation in ensuring a more balanced payment mechanism across the value chain, particularly in view of the prevailing financial pressures on the spinning sector,” the yarn manufacturers association said.
National Rainfed Area Authority Organizes High Level meeting for Watershed Development and Management
Wednesday, 23rd Sep 2026, (Source: www.pib.gov.in)
National Rainfed Area Authority (NRAA), MoA&FW organized a National Level Technical Committee (NLTC) meeting under the REWARD (Rejuvenating Watersheds for Agricultural Resilience through Innovative Development) programme yesterday ( 22.09.26) at NASC Complex, New Delhi. The Chief Executive Officer (CEO) of NRAA, Dr. Chandra Shekhar Kumar, IAS presided over the meeting. Dr. A. K. Nayak, DDG (NRM), ICAR ,Shri Nitin Khade, IAS, Joint Secretary (WM), DoLR, Dr. Subrat Panda, IAS, Director (DSC&WD), Odisha, Shri Upendra Pratap Singh, Commissioner, WDD, Karnataka (online) also attended the meeting. The scientists and representatives of State Level Nodal Agency (SLNA) Odisha and Karnataka, Technical partners from ICAR Institutes, Agricultural Universities, IIT, NGOs, consortium partners, REWARD PMU team of DoLR and NRAA, and CoE-WM (approximately 45 participants) participated in the meeting. The meeting was coordinated by Dr. Susama Sudhishri, Technical Expert (Watershed Development) and PI-REWARD, NRAA. Dr. Chandra Shekhar Kumar, the Chief Executive Officer (CEO) of NRAA, emphasized on the validation of the statement / claim made in the draft NTG on the basis of data collected in the REWARD programme. He also advised the state Governments Odisha and Karnataka to share the watershed data and Decision Support System (DSS) to all stakeholders. Dr. A. K. Nayak emphasized on integration of Land Resource Inventory (LRI) and Hydrology for improved planning of watersheds. Dr. A. K. Nayak, DDG (NRM), ICAR said that methodologies adopted to arrive at certain results / conclusions should be clearly written in the NTG and web portals should be developed at the earliest. Shri Nitin Khade, IAS, Joint Secretary (WM), DoLR opined that DPR preparation time may be compressed to 3 months from 6 months in order to get more time for execution of activities. Aspects of convergence of sectors should also be explored and may be included in the NTG. At the start of the meeting, Dr. Susama Sudhishri presented the action taken report of the last NLTC meeting and also presented the additions made in the 2nd draft of the National Technical Guidelines (NTG). Dr. Susama requested the State Level Nodal Agencies of Odisha and Karnataka to share the recorded data with NRAA and consortium partners for analysis and preparation of reports, and validation of NTG. The NTG being developed will be used for future generation watershed development in our country under Watershed Development Component- Pradhan Mantri Krishi Sinchayee Yojana 3.0.
Ministry of Textiles to Undertake Special Campaign 6 with Focus on Swachhata, Pendency and E-waste Management
Wednesday, 23rd Sep 2026, (Source: www.pib.gov.in)
The Government of India has announced Special Campaign 6, which will run from 2nd October to 31st October 2026, with a focus on Swachhta (cleanliness) and reducing pendency in government activities. The main goal of this yearly campaign is to make cleanliness a permanent habit in government offices and quickly finish all pending official work.
The Three Key Phases of the Campaign:
· Preparatory Phase (September 15th –30th, 2026): This phase has already started. Ministries will use this time to identify targets (pending references from MP’s, State Governments, Inter-Ministerial references (Cabinet Notes), PMO, Parliamentary Assurances pending for more than 3 months, Public Grievances and Appeals),Record Management – Review of files/recording and weeding of files/closing of e-files, find pending files, and locate scrap materials for disposal.
· Implementation Phase (October 2nd –31st, 2026): During this month-long phase, offices will actively clean up spaces, dispose of waste, and resolve pending files.
· Evaluation Phase (November 16th –30th, 2026): In this final phase, the overall work done and results achieved across all ministries will be reviewed and measured.
The Campaign this year will emphasize “Effective Collection, segregation and disposal of e-waste.
This year focus on scientific disposal/management of e-waste generated in Government offices and the main phase will be the action phase, during which all out efforts shall be made to achieve the targets identified in preparatory phase information shall be provided on monitoring portal on daily basis by a dedicated portal https://scdpm.nic.in/specialcampaign6/.
Achievements and Best Practices of Special Campaign 5
Special Campaign 6 builds upon the achievements of Special Campaign 5 to further the objective of improving the experience of citizens with government offices. During Special Campaign 5, the Ministry of Textiles conducted a comprehensive review of 19,376 physical files was conducted. As a result, 6264 physical files were weeded out, and 274 e-files were closed. This diligent review process led to the freeing up of 25498 square feet of space. Revenue amounting to Rs. 11.35 Lakh was generated from the disposal of scrap and other redundant materials. A total of 200 sites were successfully cleaned during the campaign.
It is also important to note that 63 VIP references were promptly addressed and resolved. Furthermore, regarding the Public Grievances pending at the start of the campaign, the Ministry achieved 100% of its target by redressing 44 Public Grievances.
The Ministry of Textiles is dedicated to advancing the goals and successes of previous campaigns. We will put forward the same level of dedication and collective effort to make Special Campaign 6 equally successful.
₹45.49 Crore Aid for Cotton Farmers
Wednesday, 23rd Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Maharashtra: Additional Aid of ₹45.49 Crore for Pachora-Bhadgaon Cotton Farmers
Jalgaon, Maharashtra: Farmers in the Pachora and Bhadgaon talukas of Jalgaon district, whose cotton crops were damaged by heavy rainfall in September 2025, will now receive additional assistance. The Maharashtra government has sanctioned a total of ₹45,48,76,000—approximately ₹45.49 crore—in additional aid for both talukas. A government resolution regarding this has been issued. In the initial damage assessment reports (panchanamas) prepared after the heavy rains, some of the affected lands were recorded as Jirayati (dryland/rain-fed) land. Consequently, the farmers concerned received aid at the rate of ₹8,500 per hectare. Later, these lands were reclassified as Bagayati (irrigated) land. Accordingly, the aid rate was set at ₹17,000 per hectare. The difference between the two rates will now be provided to the farmers as additional assistance. Kishor Patil Raised the Issue
Kishor Patil, the MLA for the Pachora-Bhadgaon assembly constituency, raised this matter with the government to ensure the farmers received fair assistance. Subsequently, revised damage assessment reports were prepared. The MLA presented the farmers' demands through meetings and correspondence with Chief Minister Devendra Fadnavis, Deputy Chief Minister Eknath Shinde, Sunetra Pawar, and Relief and Rehabilitation Minister Makarand Jadhav. Following this, the additional aid was approved during a meeting of the cabinet sub-committee.
₹27.23 Crore for Pachora, ₹18.26 Crore for Bhadgaon
For Pachora taluka, ₹27,22,92,000 has been sanctioned. This includes ₹26.50 crore for 31,176 hectares of affected land within the 0–2 hectare range and ₹72.90 lakh for 857 hectares in the additional 2–3 hectare range.For Bhadgaon taluka, ₹18,25,84,000 has been sanctioned. This includes ₹14 crore 60 lakh 67 thousand for an area of 17,184 hectares falling within the 0 to 2-hectare range, and ₹3 crore 65 lakh 17 thousand for 4,296 hectares falling within the additional 2 to 3-hectare range.
The approved assistance will be deposited directly into the farmers' bank accounts via DBT. Furthermore, instructions have been issued ensuring that the relief amount provided for natural calamities is not used for the recovery of outstanding loans.
