Cotlook Index: 06-10-2026
91.45 (+2.10)
ICE cotton continues to rise on weaker dollar, physical demand
Wednesday, 7th Oct 2026, (Source: www.fibre2fashion.com)
Insights: ICE cotton futures rose for a third session, with the December 2026 contract up 35 points at 81.21 cents per pound on weaker US dollar support, agricultural strength and lower-price demand. The contract has gained 345 points in three sessions, but volume fell to 46,256 contracts and open interest dropped to 382,377.US crop conditions slipped, while China's post-holiday reopening is awaited.
ICE cotton futures rose for the third consecutive session on Tuesday, supported by a weaker US dollar, strength across agricultural commodities, improving physical demand at lower prices and continued commercial buying. However, lower trading volume and declining open interest indicated that short covering remained an important part of the recovery.The ICE December 2026 cotton contract settled 35 points higher at 81.21 cents per pound. It traded between 80.37 and 81.73 cents during the session. The contract has recovered 345 points, or 3.45 cents, over the past three sessions. It has also risen around 4.16 cents from the October 2 low of 77.05 cents, with three consecutive higher closes signalling an improvement in short-term sentiment.Despite the recovery, December cotton was still around 11.93 cents below its August 31 high of 93.14 cents. The latest rise therefore remained a recovery within the broader bearish structure rather than a confirmed trend reversal. Other ICE cotton contracts gained between 21 and 57 points during the session, taking their cumulative three-session gains to between 157 and 356 points.
Trading volume, however, declined to 46,256 contracts from 63,113 contracts in the previous session and was the lowest in around three weeks. Open interest fell by 1,263 contracts to 382,377. It has remained above 380,000 contracts for around three weeks after reaching a record 389,494 contracts on September 29. Rising prices accompanied by lower open interest suggested that short covering and position liquidation remained important drivers of the rally.
The US dollar index weakened during the session, providing support to dollar-denominated commodities. The broader agricultural complex also strengthened, with soybean futures gaining around 1.7 per cent, corn rising 2.2 per cent and wheat advancing 1.7 per cent amid a softer dollar and concerns over harvest delays.Fresh enquiries for US cotton emerged after prices fell into the 77–80 cents per pound range, with some business reported since the weekend. Mills also continued to fix on-call sales, while the large volume of unfixed call sales could create further futures-buying requirements.Recent Commitments of Traders data continued to show trade buying alongside speculative selling for the fourth consecutive week. Commercial participants reduced their net-short exposure, while speculative traders liquidated longs and increased short positions.China also remained in focus after State Reserve cotton sales were suspended from September 30. Chinese cotton futures on the Zhengzhou Commodity Exchange are scheduled to resume trading on October 8 after the Golden Week holiday, with the reopening likely to provide an important signal for the global market.
US crop data remained mixed. Cotton bolls were 74 per cent open as of October 4 compared with the five-year average of 76 per cent. Harvesting reached 23 per cent, slightly ahead of the five-year average of 21 per cent. Crop conditions deteriorated further, with 33 per cent of the crop rated good to excellent, down from 35 per cent a week earlier. Recent cool and wet weather in Texas and some other producing regions also raised concerns over harvesting and fibre quality.
Immediate resistance was seen around 81.70–82.00 cents, followed by 82.50 cents and 83.00–83.50 cents. On the downside, 80 cents remained the immediate psychological support, followed by 79.00–79.20 cents and the recent swing low of 77.05 cents.
The market has shifted from strongly bearish sentiment towards recovery mode, supported by lower-price demand, commercial buying, a weaker dollar and declining crop conditions. However, low volume, falling open interest, slow export shipments and the still-large US crop supply kept traders cautious ahead of the key 82–83 cents resistance zone.
This morning (Indian Standard Time), December 2026 cotton was trading at 81.15 cents per pound (down 0.06 cent). Cash cotton was traded at 78.96 cents (up 0.35 cent), while the October 2026 contract traded at 77.35 cents (up 0.35 cent). The March 2027 contract was at 84.15 cents (down 0.02 cent), May 2027 at 85.87 cents (up 0.03 cent), and July 2027 at 86.25 cents (up 0.01 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India to set up integrated transport and logistics authority
Tuesday, 6th Oct 2026, (Source: www.fibre2fashion.com)
Insights: India's Cabinet has approved the Integrated Transport and Logistics Authority (ITLA) as the national apex body for transport and logistics planning, appraisal, monitoring and data analytics.It will draft a 10-year-plus National Transport Master Plan, align sectoral plans, appraise and monitor projects above Rs 500 crore ($52 million), and build a National Transport Data Repository.
The Indian Cabinet, chaired by Prime Minister Narendra Modi, has approved the setting up of a special purpose vehicle named Integrated Transport & Logistics Authority (ITLA) to strengthen research, planning, appraisal, monitoring and impact assessment across transportation and logistics. The approval is aimed at addressing long-standing issues arising from fragmented planning and implementation across multiple transport-related ministries and agencies. By improving coordination and multimodal integration, ITLA is expected to enhance the efficiency, sustainability and effectiveness of transport infrastructure development in India.ITLA will function as the national apex body for integrated transport and logistics planning, research, project appraisal and monitoring, policy support and data analytics. It will prepare a comprehensive National Transport Master Plan with a planning horizon of ten years or more, covering roads, railways, ports and shipping, civil aviation, inland waterways, coastal shipping, urban mobility and logistics.The authority will also evaluate short-term sectoral plans of about five years and annual plans of transport ministries to ensure consistency with the National Transport Master Plan and promote multimodal infrastructure development. It will undertake technical appraisal of Government of India infrastructure projects costing ₹500 crore ($52 million) or more, while financial appraisal will continue through existing mechanisms, the Cabinet said in a press release.
For project execution, ITLA will monitor transport and infrastructure projects above ₹500 crore, provide a coordinated mechanism for issue resolution and carry out post-implementation impact assessment of these projects.
The authority will build a National Transport Data Repository by obtaining transport and logistics datasets from multiple sources, including Goods and Services Tax Network e-way bill, FASTag, Vahan, GPS-based systems, urban traffic management systems and other relevant databases. It will use data analytics, including freight flow and origin-destination analytics, for planning, monitoring and impact assessment.
Its mandate also includes advising and assisting in the review and updation of the National Logistics Policy (2022), capacity building, training and skilling in the logistics sector, and promoting research and innovations in transport and logistics.
The establishment of ITLA will play a role in realising India’s Vision 2047 by strengthening multimodal connectivity, improving infrastructure efficiency, reducing logistics costs and enhancing India’s global logistics competitiveness. It will also build institutional capacity for research, planning, big data integration, project monitoring and evaluation, while supporting capacity building and the adoption of international best practices.
Maharashtra Drought Measures Intensify
Wednesday, 7th Oct 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Drought in Maharashtra: Government Steps Up Measures to Boost Employment and Curb Migration Amidst Crop Loss Reports of crop damage are emerging from several areas in Maharashtra amidst drought conditions. The state government has announced new measures to boost employment in affected regions, curb migration, and ensure the safety of women and children.On Monday, October 5, the government announced the formation of a task force to ensure the effective implementation of the Employment Guarantee Scheme. The objective is to provide employment to more laborers under the scheme and prevent the migration of drought-affected families.Maharashtra's Women and Child Development Minister, Aditi Tatkare, expressed concern over the potential rise in child marriage cases during the drought. The state government has directed local administrations to conduct awareness campaigns and outreach programs in affected areas to reach women and families, particularly those migrating.The Women and Child Development Department has issued instructions to ensure a regular supply of adequate water and food at Anganwadi centers. According to the government, children of families migrating due to the drought will be provided shelter in government hostels and child care homes.
Crop Damage in Vidarbha: Cotton and Paddy
Apart from Marathwada and Solapur, reports of crop damage have also come from several parts of Vidarbha. The cotton crop has been affected in the cotton-growing districts of Vidarbha. Farmers are demanding that the central government not extend the permission for duty-free cotton imports beyond October 31.
Farmers fear that cheap imported cotton could exert downward pressure on domestic prices. There are also reports of heavy damage to the paddy crop in Vidarbha's Bhandara district. Paddy accounts for approximately 90% of the crops grown in the district.
*Lower Water Storage Compared to Last Year*
As of October 5, water storage in Maharashtra stood at 74.29%, whereas on the same date last year, it was 89.22%. Marathwada and Vidarbha are among the most severely affected regions.
Farmers in the state are grappling with the impact of drought amidst low water storage and crop losses. The state government is taking measures to boost employment, curb migration, and provide assistance to affected families.
Weak Monsoon and Global Uncertainties Raise Agricultural Risks: What Else Does RBI Say?
Wednesday, 7th Oct 2026, (Source: www.eng.ruralvoice.in)
India’s agriculture faces risks from deficient monsoon rainfall, low reservoir levels, possible El Niño conditions and volatile global agricultural commodity markets. RBI says rural resilience is improving as irrigation, crop diversification, allied activities and non-farm employment reduce monsoon dependence. Record foodgrain and horticulture output provide some cushion against these risks.India’s agricultural sector is facing a combination of domestic weather risks and uncertain global agricultural commodity trends, even as the rural economy is becoming less dependent on crop production. According to the Reserve Bank of India’s assessment in its October 2026 Monetary Policy report, the southwest monsoon remained uneven during the season. After a weak June, rainfall covered the entire country by July 9, while July rainfall was 1 per cent above the long-period average. However, cumulative rainfall by September 30 was 12.6 per cent below normal, with deficient rainfall across all regions. The production-weighted rainfall index stood at 90 per cent.Low reservoir storage adds to the concern. Water levels in major reservoirs on October 1 were at 71.8 per cent of capacity, well below the normal level of 81.8 per cent and last year’s 90.3 per cent. Kharif sowing as of October 2 was 1 per cent lower than a year earlier, although it remained 1 per cent above the normal area. Rice, sugarcane and cotton acreage declined, while pulses, coarse cereals and oilseeds recorded higher sowing.
The outlook for the rabi season could also face headwinds from low reservoir levels, above-normal temperatures and the possibility of El Niño conditions
Global agricultural commodity markets are also facing a mixed outlook. Weather disruptions in major producing regions, geopolitical tensions, changing trade policies and fluctuations in input and energy prices are influencing the global supply-demand balance. Developments in major exporting and importing economies could affect international prices of cereals, edible oils and other agricultural commodities, with implications for India’s farmgate prices, trade and food inflation.The global commodity environment is particularly relevant for India because movements in international prices can transmit to domestic markets through imports, exports and input costs. A combination of weather-related production losses in major exporting countries and trade restrictions could tighten global supplies, while weaker demand or improved production could exert downward pressure on prices.
Against this backdrop, India’s agricultural performance remains relatively strong. The third advance estimate for 2025-26 puts foodgrain production at a record 3,766 lakh tonnes, 5.3 per cent higher than the previous year. All major crops except cotton recorded an increase. Horticulture production is estimated at 3,778 lakh tonnes, 1.9 per cent above the final estimate for 2024-25, supported by higher output of banana, mango, potato, tomato and non-TOP vegetables.
It says that the government has increased MSPs by 0.1-8.8 per cent for kharif crops for the 2026-27 marketing season and by 1.0-10.3 per cent for rabi crops for the 2027-28 marketing season, partly aimed at encouraging crop diversification and addressing demand-supply imbalances.
RBI’s analysis in ‘Indian Agricultural Sector amidst Weather Shocks’ suggests that the broader rural economy is becoming more resilient to rainfall shocks. Among households with landholdings of up to one acre, wages account for more than 55 per cent of household income, while crop production and livestock together contribute about 36 per cent.The analysis shows that in years when rainfall deficiency exceeds 7 per cent, non-agricultural activities become the predominant contributor to rural economic growth. RBI’s regression analysis for 1994-95 to 2025-26 finds a statistically significant negative relationship between rainfall shortfalls and agricultural and allied growth, with a coefficient of -0.40. Rainfall variations explain around 39 per cent of the variation in agricultural growth, while the coefficient for the non-agricultural component is statistically insignificant.Greater irrigation coverage, weather-resilient crop varieties, diversification towards less water-intensive crops and the expansion of livestock, fisheries and other allied activities have reduced the rural economy’s dependence on rainfall.However, weather conditions remain a major risk to food inflation. A weak monsoon, possible El Niño effects and disruptions in global agricultural commodity markets could put pressure on food supplies and prices. The RBI’s assessment therefore points to a rural economy that is becoming more diversified and resilient, but an agricultural sector that remains exposed to both domestic weather shocks and increasingly interconnected global commodity markets.
India’s Cotton Sector Looks to New Age Fibres for the Next Phase of Growth
Wednesday, 7th Oct 2026, (Source: www.textilevaluechain.in)
From cotton cultivation and traceability to milkweed, hemp and banana fibre, India’s fibre strategy is expanding beyond its traditional cotton base.World Cotton Day, observed every year on 7 October, highlights the longstanding role of cotton in India’s textile and agricultural economy. India remains the world’s second-largest cotton producer and the largest cotton-growing nation by acreage, while new initiatives are also focusing on productivity, fibre quality, traceability and the development of alternative fibre resources.
India’s association with cotton dates back thousands of years, with Indian muslin historically described as “woven air”. Cotton has remained closely linked to the country’s textile production, agriculture and economic development.India currently has nearly 115.25 lakh hectares under cotton cultivation, representing more than one-third of the world’s cotton acreage. The country is the world’s second-largest cotton producer and the largest cotton-growing nation by acreage. India is also the only country in the world to commercially cultivate all four species of cotton.
Nearly six million farmers depend directly on cotton cultivation, while millions more are connected to the crop through ginning, spinning, weaving and garmenting. Cotton accounts for around 60 per cent of India’s textile fibre consumption, compared with about 30 per cent globally.The sector continues to face challenges including low productivity, dependence on rain-fed cultivation, climate and pest risks, uneven access to modern technology and concerns over fibre quality.
The Mission for Cotton Productivity—Kapas Kanti, with an outlay of more than 5,000 crore ₹, takes an integrated approach covering the cotton value chain from seed and farmers to ginning, spinning, manufacturing and global markets.The mission aims to increase cotton lint productivity from 440 kg to 755 kg per hectare and raise production to 498 lakh bales by 2030-31.Its measures include climate-resilient and high-yielding varieties, modern farming practices, farmer demonstrations, scientific research, quality improvement, testing, traceability and sustainable fibre development.MSP procurement has been expanded to 571 centres, alongside digital systems intended to improve transparency and efficiency in procurement.The CotBiz (Cotton Seed & Bale Billing System) and BITS (Bale Identification and Traceability System) are being used to strengthen efficiency, transparency and traceability across the cotton value chain.
At the same time, Kasturi Cotton Bharat is focused on quality, certification and traceability for Indian cotton.
Around 60 per cent of India’s cotton is grown in rain-fed areas, making productivity and resilience key areas of focus.Modern technologies, improved varieties, High Density Planting System (HDPS), improved agronomic practices and stronger extension activities are being taken to cotton-growing areas.Under conventional cultivation, farmers usually harvested about 5–7 quintals of seed cotton per acre. With HDPS, using about 5.5 packets of seed and 29,000 plants per acre, yields have risen to around 12 quintals per acre.The next stated target is 18 quintals of seed cotton per acre, with farmers playing an active role in the effort.
Higher cotton production is also being linked with improvements in fibre quality and ginning efficiency. With lint recovery currently at around 32–33 per cent, modernising ginning has been identified as an important area. During interactions with ginners, the focus has been placed on quality and efficiency, with modern machinery interventions helping move lint recovery towards 35 per cent and improving the cleanliness and quality of Indian cotton supplied to global markets..
India’s fibre requirement is projected to increase from around 15 MMT today to nearly 23 MMT by 2030. Cotton alone is not expected to meet this projected requirement, creating a focus on other fibre resources.
The development of New Age Fibres is being positioned as another part of India’s fibre strategy, with emphasis on research, development and commercialisation.A dedicated 300 ₹ crore under the Mission for Cotton Productivity is supporting this area, with the stated objective of creating opportunities for farmers, rural enterprises and sustainable manufacturing.The fibre range includes milkweed, flax, ramie, sisal, kapok, hemp, bamboo, banana, nettle and pineapple leaf fibre.Milkweed, traditionally known as Aak or Madar and used in offerings to Lord Shiva, is being explored as a New Age Fibre. Cultivation has expanded to 15–16 acres, with around 10,000 kg of floss/fibre extracted from Uttar Pradesh, Haryana and Rajasthan. Its potential applications include insulation, sustainable filling materials, textiles and extreme-cold-climate defence clothing.Sisal has applications in automotive interiors, geotextiles, composites, construction reinforcement and sustainable packaging. Ramie has potential applications in apparel, denim blends and technical textiles.Pineapple Leaf Fibre (PALF) can be used to develop fashion textiles, leather alternatives and bio-composites from agricultural residue. Banana fibre is used for yarn, paper, handicrafts, furnishings and technical textiles.Other fibres, including bamboo, flax, hemp, nettle and kapok, add further options for textiles, home furnishings, insulation and technical products.
India’s fibre requirements and the development of renewable, biodegradable and low-carbon materials are creating a wider focus beyond conventional cotton.The strategy outlined for New Age Fibres covers both traditional fibre resources and newer applications, with attention to research, commercialisation and sustainable manufacturing.India’s fibre development approach is being linked to the 5F vision, covering Farm to Fibre, Fibre to Factory, Factory to Fashion and Fashion to Foreign markets The stated focus is to combine India’s long-established cotton base with the development of New Age Fibres, sustainable materials, innovation and advanced technology as the country works towards the next phase of its textile fibre economy.
Kasturi Cotton Certification Gains as Textile Traceability Gains Importance
Wednesday, 7th Oct 2026, (Source: www.textilevaluechain.in)
Nearly 2.1 lakh bales of Indian-grown cotton were certified as Kasturi Cotton Bharat during the cotton marketing season that ended on September 30. The increase in certified volumes and the expansion of blockchain-based coverage point to a growing focus on origin, quality and traceability within India’s textile value chain.
The adoption of Kasturi Cotton Bharat has increased since its launch, with certified volumes rising from 47,100 bales in 2023-24 to 2.13 lakh bales in 2025-26. More than 10 lakh bales have now been brought under the Kasturi Cotton Bharat blockchain. The system creates a technology-enabled trail covering cotton through to the final product.The initiative is aimed at providing buyers with greater confidence regarding the origin and quality of Indian cotton.
Blockchain-based certification is becoming increasingly relevant as textile buyers in international markets seek greater visibility across supply chains.Industry users point to growing demand for transparency and traceability among global textile buyers, particularly in the U.S. and Europe.
The development comes as traceability becomes an increasingly important part of cotton sourcing and textile supply-chain processes.
India’s cotton output is estimated at 498 lakh bales by 2031-32. Of this projected production, around 132 lakh bales are expected to qualify as Kasturi Cotton.The increase in certification and blockchain coverage indicates the expanding role of traceability in establishing the origin and quality of Indian cotton for buyers.
