Cotlook Index: 29-09-2026
93.35 ( +0.10 )
India, Qatar accelerate talks on BIT, FTA & $10 bn investment plan
Wednesday, 30th Sep 2026, (Source: www.fibre2fashion.com)
Insights: India and Qatar have agreed to quicken work on a Bilateral Investment Treaty and Free Trade Agreement after ministerial talks in Doha.The agenda covers Qatar's $10 billion investment commitment and a proposed Qatar Investment Authority office in India. Exporters, importers and sourcing teams will monitor moves on Gulf trade flows and Strait of Hormuz commerce.
India and Qatar have agreed to accelerate engagement on a Bilateral Investment Treaty (BIT) and a Free Trade Agreement (FTA), while advancing Qatar’s $10 billion investment commitment in India and plans to establish a Qatar Investment Authority (QIA) office in the country.The issues were discussed during India's Finance Minister Nirmala Sitharaman’s three-day visit to Doha, which concluded on September 29, including meetings with Qatar’s Minister of State for Foreign Trade Ahmad bin Mohammed Al-Sayed and Finance Minister Ali bin Ahmed Al-Kuwari on the sidelines of the Asian Infrastructure Investment Bank (AIIB) 2026 Annual Meeting.The two sides also discussed expanding the use of India’s Unified Payments Interface (UPI) across Qatar, engagement with India’s National Infrastructure and Investment Fund (NIIF), and the Double Taxation Avoidance Agreement (DTAA) as a framework for greater trade, investment and tax certainty.“The leaders discussed expansion of Indian UPI payments across Qatar; implementation of $10 billion Qatari investment commitment in India; engagement with National Infrastructure and Investment Fund; and finalisation of the Bilateral Investment Treaty. They also discussed the Double Taxation Avoidance Agreement as a strengthened framework for trade, investment and tax certainty,” the Ministry of Finance said in a post on X.Qatar highlighted investment opportunities in India’s ports, airports, highways and power sectors. Opportunities for Indian companies in Qatar were also discussed across food security, pharmaceuticals, petrochemicals, education, healthcare and start-ups.Sitharaman also stressed the need to restore regular trade movement between India, Qatar and other Gulf countries, including unimpeded shipping and commercial navigation through the Strait of Hormuz, according to media reports. Separately, Sitharaman addressed the Qatari Businessmen Association (QBA) Business Roundtable in Doha, where India’s economic growth and investment opportunities were presented to Qatari businesses. The Ministry said India’s real GDP growth reached 7.8 per cent in the first quarter of FY26, while investment grew 11.9 per cent.The Ministry also highlighted Japan Credit Rating’s upgrade of India’s long-term issuer rating from BBB+ to A-, and said India recorded annual gross foreign direct investment (FDI) inflows of $94.53 billion in FY26, the highest level in 15 years.At the business roundtable, Sitharaman discussed emerging economic opportunities in both countries and encouraged Qatari businesses to explore trade and investment partnerships with India.
During her Qatar visit, Sitharaman also held bilateral meetings with counterparts from Saudi Arabia, Jordan and Nepal covering areas including investment, trade, reconstruction, food security and digital payments.
ICE cotton plunges on aggressive selling pressure, stronger dollar
Wednesday, 30th Sep 2026, (Source: www.fibre2fashion.com)
Insights: ICE cotton futures plunged as US harvest pressure, a firm dollar, weaker crude oil and position adjustments drove broad selling.December 2026 settled at the 400-point daily limit at 78.86 cents per pound; trading volume rose to 112,170 contracts.China suspended 2026 State Reserve sales from September 30, while shipments lagged projections and traders watched crude and the dollar.
ICE cotton futures plunged on Tuesday as aggressive selling swept across the board amid seasonal harvest pressure, a firm US dollar, weaker crude oil, and month-end and quarter-end position adjustments. Increasing availability of the US crop added supply pressure, while higher interest-rate expectations supported the dollar and weighed on export competitiveness. Heavy trading volume reinforced the bearish move, although China’s suspension of State Reserve cotton sales offered a potentially supportive supply-side development.The most-active December 2026 cotton contract closed at the 400-point daily limit, settling at 78.86 cents per pound. Its synthetic settlement was calculated at 78.63 cents, implying an effective decline of 423 points.March 2027, May 2027 and July 2027 contracts also closed at the 400-point limit, with synthetic losses of around 412–423 points. Other contracts declined by 175–393 points, indicating broad-based selling across the futures board rather than pressure confined to the nearby contract.Trading volume surged to 112,170 contracts from 61,336 contracts in the previous session. It was the highest daily volume since June 11, when 123,082 contracts were traded, highlighting strong market participation in the decline.Open interest had reached a record 386,954 contracts on Friday, surpassing the previous high of 386,418 contracts recorded on February 4. Open interest has remained above 300,000 contracts throughout 2026.Seasonal supply pressure also remained an important factor as the US harvest accelerated and availability of the new crop increased. Better-than-expected yields could keep prices under pressure in the coming weeks, although adverse weather or concerns over crop quality and yields could provide temporary support.
The US dollar remained firm amid expectations of tighter monetary policy. A stronger dollar makes US cotton relatively more expensive for overseas buyers and can weaken export competitiveness. Month-end and quarter-end portfolio adjustments also encouraged position rebalancing, with the unwinding of speculative long positions potentially adding to selling pressure.Crude oil prices weakened during the session. Lower energy prices can reduce polyester production costs, potentially improving the competitiveness of man-made fibres against cotton.US cotton export sales had improved in the previous week, but shipments continued to lag the pace needed to meet US Department of Agriculture projections, leaving the demand outlook relatively subdued.
Meanwhile, the China National Cotton Reserves Corporation decided to suspend 2026 State Reserve cotton sales from September 30. The move will halt the regular flow of additional reserve cotton into the market and could provide some support from the supply side.The planned September 29 reserve auction comprised 2,456.21 tonnes, entirely of US cotton. Cotton China reported a 100 per cent transaction rate for the auction, with an average transaction price of 17,636 yuan (~$2,624) per tonne.Technically, the decisive fall below 80 cents strengthened the bearish tone. The 78.63–78.30 cents range has emerged as the next important reference zone, while 80 cents is likely to act as the first major psychological resistance level.The sharp limit-down move could also leave the market technically oversold, raising the possibility of short-covering if a supportive fundamental trigger emerges.Market participants are expected to closely watch US harvest progress, export sales and shipments, China’s reserve-sale suspension, movements in the US dollar and crude oil, and speculative positioning for further direction.This structure keeps the first paragraph market-wide, the second paragraph contract-specific, and the subsequent paragraphs focused on participation, fundamentals and technical analysis.This morning (Indian Standard Time), December 2026 cotton was trading at 79.18 cents per pound (up 0.32 cent). Cash cotton was traded at 76.61 cents (down 3.75 cent), while the October 2026 contract traded at 75.13 cents (down 3.93 cent). The March 2027 contract was at 82.03 cents (up 0.28 cent), May 2027 at 83.75 cents (up 0.32 cent), and July 2027 at 84.12 cents (up 0.30 cent).
Middle Corridor could emerge as efficient Europe-Asia trade route: WB
Wednesday, 30th Sep 2026, (Source: www.fibre2fashion.com)
Insights: Strategic investments and reforms could make the Trans-Caspian Transport Corridor a more reliable Europe-Asia trade route, according to the World Bank. Upgrading infrastructure and improving co-ordination could more than triple trade volumes, halve travel times, raise GDP by 3.3 per cent and create 2 million jobs by 2040.
Strategic investments and reforms in the Trans-Caspian Transport Corridor (TCTC), also known as the Middle Corridor, could make the route a more reliable and efficient option for Europe-Asia trade, widening routing choices and lowering logistics costs for shippers facing supply-chain disruptions, heightened protectionism and climate impacts, according to the World Bank.
The report covers nine countries along the corridor: Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkiye, Turkmenistan and Uzbekistan. Armenia is not yet a TCTC host country but is expected to establish direct physical links to the corridor in the 2030s.
For exporters, importers, manufacturers and sourcing teams moving goods between Europe and Asia, the report highlights the need to develop the TCTC beyond a freight route into an integrated logistics and economic corridor
Targeted investments to upgrade and better integrate the Middle Corridor could more than triple trade volumes along the route, halve travel times, boost GDP by 3.3 per cent and create 2 million additional jobs by 2040, bringing better market access and greater economic opportunities to nearly 200 million people living in the corridor countries, the World Bank said in its report, 'Integration: World-Class Trade Logistics Along the Trans-Caspian Transport Corridor.'
If Middle Corridor countries combine infrastructure investment with reforms to improve trade and transport efficiency, corridor volumes could quadruple and travel times could fall by two-thirds by 2040 compared with 2023, the World Bank noted.
The corridor countries will need to invest at least $25 billion through 2040 to relieve physical infrastructure bottlenecks, mainly in rail networks, port capacity and maritime links. In addition, about $30 billion will be needed for enabling investments, including connecting roads and rail links, logistics hubs, inland terminals and logistics equipment. A significant portion of these investments could be mobilised from the private sector, the World Bank said.
The World Bank's broader estimate puts economic activity-enabling investments at about $30.5 billion across the countries over the next 15 years. These include feeder roads and last-mile rail links, inland logistics clusters and terminals, rolling stock and other logistics equipment, as well as improved asset management systems.
Of the 16 most critical infrastructure investments identified by the World Bank, 75 per cent are already under way, while the remainder are embedded in government plans and expected to proceed in the near term. This means that improving operational performance, trade facilitation and cross-border coordination will be among the key challenges for the corridor.
Cross-border collaboration will be central to the corridor's performance. The World Bank recommends a single digital corridor system to replace fragmented paperwork with one entry point for transport, transit and trade data; an integrated, market-oriented rail freight and Trans-Caspian shipping operator structured as a joint venture between host-country rail and shipping operators; stronger corridor-wide co-ordination to monitor performance and resolve bottlenecks; and modernisation of corridor operators through improved governance, financial sustainability and regulation.
The corridor could also serve as a platform for economic diversification, job creation, foreign direct investment (FDI) and private-sector growth, while helping countries integrate into global value chains, the World Bank added.
State-owned enterprises (SOEs) own and operate most rail, port and shipping assets across the TCTC, making their performance critical to the corridor's success. The World Bank observed that many SOEs face persistent operational, financial and governance constraints and that strengthening and commercialising them is a prerequisite for, rather than a substitute for, private-sector participation.
Trade facilitation and digitalisation also need to improve. The World Bank said multiple contracts of carriage, customs transit documents and other transport and transit documents could be consolidated into a single Transport, Transit and Trade (T3) digital document or data entry.
The TCTC is a multimodal route linking Asia and Europe through Central Asia, the South Caucasus and Turkiye, using rail, Caspian Sea and Black Sea short-sea shipping and road connections. Its success will depend on how effectively countries and operators reduce border delays, simplify documentation, co-ordinate logistics hubs and provide reliable services.
The World Bank has proposed a TCTC Assessment and Response Structure (TARS) to strengthen cross-border collaboration and help governments, transport operators and the private sector address operational bottlenecks and improve corridor performance.
Indian Cotton Market Under Pressure
Wednesday, 30th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Pressure on Indian Cotton Market Due to Falling Global Prices; Arrivals Expected to Rise
Cotton Market: The Indian cotton market is feeling the impact of declining global cotton prices, rising arrivals of the new crop in the domestic market, and weak demand. In auctions conducted by the Cotton Corporation of India (CCI), prices for the 2025-26 season's cotton have dropped by approximately ₹1,200 per candy over the past two days. According to trade sources, domestic cotton prices have fallen from recent highs of around ₹70,000 per candy to the ₹64,500–₹65,500 range. In this market context, one candy is equivalent to 356 kilograms. Cottonseed prices have also declined, exerting downward pressure on raw cotton prices. Weakness has also been observed in the global market. Cotton futures for December delivery on the New York Intercontinental Exchange (ICE) were trading at around 80.13 cents per pound, down from a high of approximately 93 cents per pound reached in late August.
Sluggish Buying; New Crop Arrivals Expected to Increase
According to Ramanuj Das Boob, a sourcing agent based in Raichur, cottonseed prices have dropped by ₹300–₹400 per quintal, settling at around ₹4,600–₹4,700 per quintal. He noted that buying activity is currently slow. Demand for cotton bales from spinning mills remains limited, with many mills holding stocks sufficient for about 1 to 1.5 months.
Daily arrivals of the new crop are currently estimated at around 45,000–50,000 bales. Anand Popat of CotYarn Trade Link expects arrivals of the new crop to increase further in October. This could keep domestic cotton prices under pressure for some time. However, the limited availability of the old crop with spinning mills could provide some support to the market. According to Anand Popat, the Indian cotton market is now entering a supply-driven phase. Future price trends may depend on factors such as the arrival of the new crop, mill buying, and government policy regarding duty-free cotton imports. Meanwhile, Atul S. Ganatra, CMD of the Radhalakshmi Group, has projected—based on interactions with farmers in cotton-growing states and surveys of standing crops—that cotton production in 2026-27 could be around 10 percent lower than the previous year. According to Ganatra, rainfall was deficient between June and September this year; this could affect water availability for farmers during subsequent pickings and impact overall production.
Drought Hits Five States, Rabi Focus Shifts
Wednesday, 30th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Drought conditions in 5 states; 6.11 lakh hectares of crop area affected; focus on low-water-consuming crops for Rabi season
New Delhi: The agricultural sector in several states has been impacted by a deficit monsoon and adverse weather conditions. According to Union Agriculture Minister Shivraj Singh Chouhan, drought conditions have been declared in Karnataka, Maharashtra, parts of Andhra Pradesh, Telangana, and Rajasthan. Meanwhile, preliminary reports indicate that approximately 6.11 lakh hectares of crop area across Karnataka, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, Rajasthan, and Gujarat have been affected by heavy rains, floods, or drought. A detailed scientific assessment of the damage is currently underway. By the end of the monsoon season, rainfall across the country was approximately 12.3% below normal. Consequently, the total sown area for Kharif crops declined by about 1%. The acreage for paddy decreased by 16.32 lakh hectares, while reductions were also recorded in the areas under maize, soybean, and cotton. Conversely, there was an increase in the cultivation area for crops such as urad (black gram), tur (pigeon pea), bajra (pearl millet), jowar (sorghum), sesame, and sunflower. For the Rabi season, the focus will be on promoting short-duration crops that require less water and are suited to local soil and weather conditions. The Central Government will assist states in identifying appropriate seeds and crop varieties. A central team is scheduled to visit Karnataka on October 3 to assess the drought situation, while Maharashtra has also requested a central assessment team. The government has set a total foodgrain production target of 373.93 million tonnes for 2026-27. Production stood at 376.56 million tonnes in 2025-26. The foodgrain production target for the upcoming Rabi season has been fixed at 177.72 million tonnes. Fertilizer requirement for the Rabi season is estimated at approximately 380 lakh metric tonnes. Currently, a fertilizer stock of over 163 lakh metric tonnes is available in the country. To promote balanced fertilizer use, the government has announced a ‘Khet Bachao Abhiyan’ (Save the Farm Campaign) to be conducted from October 22 to November 30. A pilot project demonstrated that balanced fertilizer use led to a 27% reduction in consumption and savings of over ₹1,400 crore.
Kasturi Cotton Quality Gets Focus
Wednesday, 30th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Focus on Kasturi Cotton Quality; ₹500 Incentive per Bale
Barwani: Farmers in the district are being sensitized about the 'Kasturi Cotton India' initiative, aimed at enhancing the quality and brand recognition of Indian cotton. A one-day workshop under the Kasturi Cotton India program was held on Tuesday, September 29, at the Anjad Agricultural Produce Market premises. Farmers were provided with information regarding cotton quality, cleanliness, storage, and transportation.
Kasturi Cotton India is neither a new cotton variety nor a new seed; rather, it is an initiative focused on the branding, certification, and traceability of Indian cotton. The workshop highlighted a provision for an incentive of ₹500 per bale of quality cotton. According to official information, the objective of Kasturi Cotton India is to strengthen the quality of Indian cotton and bolster its identity in the global market. Nitin Tomar, Project Coordinator for CITI-CDRA, advised farmers to purchase certified seeds suitable for their region exclusively from authorized dealers. He cautioned against selecting seeds based solely on low prices or the images on the packaging. Emphasis was also placed on soil testing, proper nutrition, organic manure, and natural crop protection methods. The adoption of HDPS (High-Density Planting System) technology was also encouraged.Care must be taken to ensure that soil, leaves, plastic, debris, and other foreign materials do not contaminate the cotton during picking. Maintaining cleanliness during packing, storage, and transportation is equally crucial. These measures help preserve the cotton's quality from the field to the ginning stage. The Anjad workshop provided details on quality parameters such as fiber length, trash content, moisture, strength, uniformity index, and micronaire. These details should be viewed in the context of the quality standards outlined during the workshop.
Meanwhile, the official Kasturi Cotton certification system covers long-staple cotton with a fiber length of 28 mm or more and Extra-Long Staple (ELS) cotton with a length of 35 mm or more. QR-based certification and blockchain technology are used to identify each certified bale, ensuring end-to-end traceability of the cotton.
