Cotlook Index: 26-10-2026
90.70 (-0.75)
ICA announces stronger protection against extreme contract delays
Tuesday, 27th Oct 2026, (Source: www.ica-ltd.org)
Eimear McDonagh, ICA’s new President
Photography ©Aidan Brooks
New ICA Bylaws & Rules provisions will introduce additional compensation for extreme shipment and carry delays from 1 January 2027.
The International Cotton Association (ICA) is introducing changes to its Bylaws & Rules to provide greater clarity and protection to buyers and sellers where contractual performance is subject to extreme delays.
The new provisions, which take effect on 1 January 2027, respond to concerns raised by ICA members and participants across the global cotton industry about the challenges created by prolonged delays.
Where parties agree that the ICA Bylaws & Rules apply to their contract, the new provisions will provide an additional liquidated damages mechanism once a defined period of extreme delay has been reached.Under the new rules, where shipment has not been executed within 120 days of the contractual shipment date, an additional liquidated damages amount of 4% per month, calculated pro rata for each business day, may apply until shipment is executed, subject to the conditions set out in the Rules.The provision applies where the buyer has provided the required operable Letter of Credit, shipping instruction or other payment instrument in accordance with the contract.
The Rules also establish a corresponding provision where a buyer has not provided the required operable Letter of Credit, shipping instruction or other payment instrument within 120 days of the contractual date. The same liquidated damages of 4% per month pro rata will apply. This is in addition to any carry provision contained in the contract.
The Rules also recognise circumstances where delays arise because a required payment or shipping instrument has not been provided. In such circumstances, the relevant period of delay will be treated in accordance with the provisions of the Rules when determining whether the 120-day threshold has been reached.
The amendments will apply to contracts governed by the ICA Bylaws & Rules from 1 January 2027.
ICE cotton futures extend losses as dollar strengthens
Wednesday, 28th Oct 2026, (Source: www.fibre2fashion.com)
Insights: ICE cotton futures fell for a fourth session as a stronger US dollar, weak grain markets and favourable US harvest weather pressured prices.
The December 2026 contract lost 100 points, or 1.26 per cent, to 78.06 cents per pound, taking its four-session loss to 377 points. USDA said 52 per cent of the US cotton crop was harvested by October 25, above the five-year average of 45 per cent.
ICE cotton futures declined for the fourth consecutive session on Tuesday, pressured by a stronger US dollar, weakness in grain markets and favourable harvest conditions. The most active December 2026 contract fell 100 points, or 1.26 per cent, to settle at 78.06 cents per pound, taking its cumulative loss over four sessions to 377 points. The contract also touched its lowest intraday level since October 8.
Other cotton contracts through October 2028 settled 79–113 points lower. Trading volume stood at 64,652 contracts, compared with 64,593 in the previous session. Open interest declined by 2,019 contracts on Monday to 398,768, marking the third consecutive decline after reaching a record 402,264 contracts on October 21.
According to market analysts, technical pressure intensified as the December contract closed below its 200-day moving average for the first time since March 4. However, prices remained above the October 2 low of 77.05 cents, which is considered an important support level.
The US dollar index rose 0.4 per cent to its highest closing level since October 14 as traders positioned themselves ahead of the Federal Reserve's monetary policy decision. A stronger dollar makes US cotton more expensive for overseas buyers, reducing its export competitiveness.
Market analysts said that dollar strength was exerting modest downward pressure on cotton. Weakness in Chicago grain markets also weighed on sentiment, as corn and soybeans faced harvesting pressure, while wheat declined to a nearly three-and-a-half-month low amid currency concerns and developments in Black Sea grain exports.
Favourable weather conditions across major US cotton-growing regions added to bearish sentiment. Dry weather in the Delta and Southeast, along with limited rainfall and higher temperatures in the Southwest, is expected to support harvesting activities. According to the USDA, 52 per cent of the US cotton crop had been harvested as of October 25, compared with the five-year average of 45 per cent.
Meanwhile, expectations of increased duty-free cotton imports by India and relatively high open interest provided some underlying support. However, continued selling pressure and weakness across agricultural commodities kept market sentiment cautious.
Market participants are now monitoring support at 77.05 cents, followed by 76.87 cents, while resistance is seen at 79.23 cents and subsequently at 79.80–80.00 cents. The Federal Reserve's decision, dollar movements, harvest progress and upcoming index fund rolls are expected to influence cotton futures in the coming sessions.
This morning (Indian Standard Time), December 2026 cotton traded at 77.68 cents per pound (down 0.38 cent). Cash cotton traded at 75.81 cents (down 1.00 cent), while the March 2027 contract traded at 81.52 cents (down 0.30 cent). The May 2027 contract traded at 83.14 cents (down 0.25 cent), the July 2027 contract at 83.64 cents (down 0.25 cent), and the October 2027 contract at 77.83 cents (down 1.12 cents). A few contracts remained at their previous closing levels, with no trading recorded so far today.
India's Leading Economic Index rises 0.6% in September: TCB
Wednesday, 28th Oct 2026, (Source: www.fibre2fashion.com)
Insights: India's Leading Economic Index rose 0.6 per cent in September 2026 to 193.9 (2016=100), after a 0.8 per cent rise in August, according to the Conference Board.The LEI expanded 5.9 per cent from March to September, nearly triple the 2.0 per cent growth in the previous six months. The Coincident Economic Index grew 3.5 per cent to 192.8, reversing August's 2.7 per cent fall.
The Conference Board (TCB) Leading Economic Index (LEI) for India rose by 0.6 per cent in September 2026 to 193.9 (2016=100), after increasing by 0.8 per cent in August.
The September gain took the LEI’s expansion over the six-month period from March to September 2026 to 5.9 per cent, almost triple the 2.0 per cent growth seen over the previous six-month period from September 2025 to March 2026. The Conference Board Coincident Economic Index (CEI) for India grew by 3.5 per cent in September 2026 to 192.8 (2016=100), after falling by 2.7 per cent in August. The CEI rose by 11.8 per cent over the six-month period from March to September 2026, a substantial reversal from the 0.9 per cent decrease recorded between September 2025 and March 2026, The Conference Board said in a press release.
The eight LEI components for India are interest rate spread; BSE monthly average SENSEX; real effective exchange rate across 40 currencies; M3 bank credit to the commercial sector; merchandise exports deflated by the Wholesale Price Index; cargo handled; industrial production of capital goods; and India PMI services business activity.
Indian economy stays resilient amid global headwinds: RBI
Wednesday, 28th Oct 2026, (Source: www.fibre2fashion.com)
Insights: RBI Bulletin says India's economy is anchored by strong fundamentals and policy steps, with industry and services indicators firm.
Global risks include West Asia-linked inflation, trade tensions, high bond yields and debt, even as IMF upgraded its 2026-27 outlook.
CPI inflation has broadened; RBI steps curbed forex speculation, while August FDI stayed robust in services and manufacturing.
India’s economy remains anchored by strong macroeconomic fundamentals and targeted policy interventions, even as global headwinds include inflation linked to the West Asia crisis and continuing trade tensions, according to the Reserve Bank of India’s (RBI) October Bulletin.
The 'State of the Economy' article said high-frequency indicators across industry and services showed continued strength in the Indian economy. It also said gross domestic product growth had been supported by sustained domestic demand and services, despite India being a net energy importer.
Globally, the article described the economy as passing through a difficult phase marked by multiple shocks. It said renewed geopolitical frictions in West Asia and supply chain disruptions had intensified inflationary pressures, prompting major central banks to raise policy rates, while elevated sovereign bond yields in advanced economies had brought fiscal sustainability and financial stability concerns into focus.
The article said the International Monetary Fund (IMF) had upgraded the global economic outlook for 2026 and 2027, but added that the outlook remained exposed to significant downside risks. It cited rising inflationary pressures linked to the West Asia crisis and repeated trade tensions, multi-decade-high sovereign bond yields, elevated public debt and wider fiscal sustainability concerns. Positive technology shocks and dividends linked to artificial intelligence were identified as silver linings.
On domestic inflation, the article noted that headline consumer price index (CPI) inflation had moved up over recent months and showed signs of becoming more generalised across commodities, requiring a corresponding shift in the monetary policy stance.
External pressures were being addressed through RBI regulatory measures aimed at curbing speculative activity in the foreign exchange market, the article said. Strong inflows under the FCNR(B) swap window augmented reserves, while foreign direct investment (FDI), external commercial borrowing (ECB) and remittance flows strengthened in August.
The rupee showed a depreciating bias from late September because of a stronger US dollar and rising crude oil prices, before appreciating in mid-October with support from RBI steps to restrain speculative dollar demand and a softer greenback.
FDI flows remained robust in August 2026, helped by strong gross inflows and moderation in outward FDI, the article said. Communication, miscellaneous services and manufacturing together received more than two-thirds of FDI inflows, while the US, Singapore and Mauritius accounted for about 72 per cent of inflows as major source countries.
Indian equity markets were mostly bearish in September and October up to October 19 amid risk-off sentiment driven by escalating geopolitical tensions, elevated crude oil prices and tightening financial conditions, the article added. Bearish foreign institutional investor sentiment weighed on foreign equity inflows, while domestic institutional investors remained net buyers and provided support.
India nears Chile trade deal, advances talk with Canada
Wednesday, 28th Oct 2026, (Source: www.fibre2fashion.com)
Insights: India is nearing an FTA with Chile, while talks with Canada are progressing and SACU negotiations have begun, Piyush Goyal said. India also seeks expanded trade ties with Mercosur and other partners. Talks with GCC and Israel remain slow amid regional tensions, while US negotiations continue. India has developed manuals to strengthen institutional capacity for handling trade negotiations.
India's free trade agreement (FTA) negotiations with Chile are nearing conclusion and talks with Canada are making progress, while negotiations have also started with the South Africa-led Southern African Customs Union (SACU), Indian Minister of Commerce and Industry Piyush Goyal said during a visit to the Netherlands. At a press conference in The Hague, Piyush Goyal said: "I can see Chile's quite ripe for conclusion; Canada is making very good progress. We have just started SACU negotiations, so it may take some time (for conclusion)." He was in the Netherlands on a two-day official visit and was accompanying a business delegation. India and SACU signed terms of reference (ToR) in August to formally begin negotiations towards a preferential trade agreement (PTA). SACU comprises Botswana, Eswatini, formerly Swaziland, Lesotho, Namibia and South Africa. On South America, Goyal expressed hope that continuity in Brazil’s government after the election would help accelerate talks to expand India’s PTA with the Mercosur bloc. Mercosur comprises Brazil, Argentina, Bolivia, Uruguay and Paraguay, the Indian media reported. The India-Mercosur PTA came into effect on June 1, 2009, and provides preferential tariff concessions on 450 tariff lines, or product categories, by India and 452 tariff lines by Mercosur. Both sides are now looking to widen the pact. Goyal further said that negotiations with the Gulf Cooperation Council (GCC) and Israel are slow due to the West Asia crisis and may take time, though India is ready to speed them up. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, and was established in 1981 as a political, economic and security grouping. India already has trade pacts with the UAE and Oman.For Eurasia, he said the proposed FTA covered only goods and did not include services, so India was still assessing the benefits of entering into it. India and the five-nation Eurasian Economic Union (EAEU) signed ToR on August 20, 2025, to formally start talks, and the first round of negotiations was held in November 2025.The Indian minister also said Ecuador wanted an FTA, Egypt had invited India to discuss possible cooperation, and other African countries had approached India on possible agreements with Africa, the African Union or through sectoral FTAs.
On the US, Goyal said a trade pact would give India a comparative advantage over other countries and preferential access. India and the US announced in February the finalisation of the framework for the first phase of the bilateral trade agreement (BTA), but changes in the US tariff landscape have led to further negotiations on the pact.Asked about capacity building for handling multiple negotiations, Goyal said Indian Prime Minister Narendra Modi had focused on ensuring that the learning from trade negotiations did not remain a one-time exercise. Over the past three years, India has prepared manuals as standard operating procedure guides for organised FTA negotiations, and each agreement is documented for future reference and to guide officials, he said.
India open to Chinese suppliers, to act on unfair pricing: Goyal
Wednesday, 28th Oct 2026, (Source: www.fibre2fashion.com)
Insights: India is open to Chinese suppliers meeting its growing demand for intermediate goods and raw materials, while unfair pricing concerns will be addressed through established legal channels, Commerce Minister Piyush Goyal said.
India-China trade rose nearly 29 per cent to $91.76 billion in April-September 2026-27.
Goyal hopes to boost exports to China and ASEAN despite trade and export-curb concerns.
India is open to Chinese suppliers meeting its growing demand for intermediate goods and raw materials, while concerns over unfair pricing will be addressed through established legal mechanisms, Commerce and Industry Minister Piyush Goyal said on Tuesday. He expressed hope that India would emerge as a major exporter of goods and services to China and the ASEAN region in the coming years. Goyal said India remained committed to free and fair trade and was seeking reciprocal market access for its goods and services. While welcoming Chinese supplies to meet domestic requirements, he said any instances of improper pricing or unfair trade practices would be dealt with through established legal processes, according to media reports. “They are also providing us important intermediate goods, important raw materials. If in any particular product, we find that the fair play or pricing is not proper, then there is an established judicial process, which is conducted,” Goyal said. “Other than that, we believe in the rules of fair play; we believe in the rules of open trade and we welcome suppliers to meet the growing needs of India.”
He was responding to a question on the future of India-China trade relations during a two-day official visit. Goyal said India was working to open markets in different countries on a reciprocal basis and hoped to expand exports to China and the Association of Southeast Asian Nations (ASEAN), comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. India’s bilateral trade with China rose nearly 29 per cent year on year to $91.76 billion during April-September 2026-27, from $71.24 billion in the corresponding period a year earlier, according to Commerce Ministry data. China was India’s largest trading partner during the first half of the current financial year. For the full financial year 2025-26, bilateral trade increased 7.9 per cent to $127.7 billion from $118.39 billion in 2024-25. India’s exports to China rose 36.62 per cent to $19.47 billion from $14.25 billion, while imports increased 16 per cent to $131.62 billion. The trade deficit consequently widened to $99.19 billion in 2025-26 from $85 billion a year earlier, remaining a key concern for New Delhi. Goyal’s remarks come amid efforts by the two countries to repair bilateral relations, which deteriorated following the 2020 Galwan Valley clashes and the subsequent military standoff in eastern Ladakh. On October 14, Goyal said India was working to rebuild ties with China, adding that the outcome of the process remained uncertain. Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the BRICS Summit in New Delhi last month. Modi told Xi that peace and tranquillity along the frontier remained essential for developing bilateral relations. Both leaders noted progress in ties. Relations began to improve after a meeting between Modi and Xi in Kazan, Russia, in October 2024, following the resolution of the military face-off. India also maintains restrictions on investments from countries sharing a land border with it, including China, under its foreign direct investment policy. The trade relationship therefore remains shaped by two parallel priorities: securing supplies of essential inputs for India’s domestic and infrastructure needs while expanding exports, addressing the widening trade deficit and managing concerns over trade practices, export restrictions and investment.
India Faces Cotton Shortage Risk as FTA Deals Boost Export Demand
Wednesday, 28th Oct 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Rules May Ease for MSMEs; Extension of Textile PLI Scheme by Four Years Under Consideration
The central government is considering extending the Production-Linked Incentive (PLI) scheme for the textile sector by approximately four years. As part of this proposed extension, eligibility criteria may be relaxed to encourage greater participation from Micro, Small, and Medium Enterprises (MSMEs). According to individuals familiar with the matter, the possibility of launching a fourth phase of the scheme is also being explored.
The current scheme is scheduled to run until the 2029-30 financial year. Under the proposed changes, companies that were not approved in earlier phases may be granted another opportunity to apply. However, final government approval for the extension and the adjustments to eligibility criteria has not yet been confirmed. Approved in September 2021 with a budgetary outlay of ₹10,683 crore, the scheme initially included a two-year preparatory period (FY 2022-23 and FY 2023-24), followed by a five-year performance period spanning from FY 2024-25 to FY 2028-29. The textile PLI scheme aims to promote the large-scale production of man-made fiber (MMF) garments, MMF fabrics, and technical textiles. Its objectives include enhancing domestic manufacturing capacity, attracting investment, and strengthening India’s competitive position in the global textile market. According to an official familiar with the situation, the government is considering revising the eligibility thresholds for minimum investment and turnover to make the scheme more accessible to MSMEs. This could provide an opportunity for small and medium-sized enterprises—which were previously unable to meet the existing requirements—to participate in the scheme. In the first three phases of the scheme, 170 applicants have been approved. These applicants have committed to a total proposed investment of ₹41,533 crore—more than double the scheme’s initial investment estimate of ₹19,000 crore. However, there is a difference between the proposed investment and the actual investment made; as of March 31, 2026, the actual investment recorded under the scheme stood at ₹8,117.64 crore. A state-wise breakdown shows that the approved applicants include 46 from Gujarat, 27 from Maharashtra, and 23 from Madhya Pradesh. It would be prudent to cross-check these figures against the relevant official records before citing them. If the proposed expansion is approved, it could help boost investment in the textile sector and increase the participation of MSMEs. The final details regarding the new duration of the scheme, the fourth phase, and the revised eligibility criteria will only become clear following an official government announcement.
Scientists engage directly with farmers in Delhi’s rural areas under ‘Khet Bachao Abhiyan'
Wednesday, 28th Oct 2026, (Source: www.pib.gov.in)
Scientists raise awareness among farmers about rabi crop management, balanced fertiliser use and sustainable agricultural practices
The Ministry of Agriculture and Farmers’ Welfare is organising the ‘Khet Bachao Abhiyan–Rabi 2026’ across the country from 22 October to 30 November 2026 through its two departments. The primary objective of the campaign is to ensure that farmers receive direct information about the latest agricultural technologies and government schemes through awareness programmes organised in villages. It also aims to raise awareness about the improved management of rabi crops and increased agricultural productivity through the adoption of modern technologies. The campaign is an important initiative towards developing agriculture for a developed India and ensuring the prosperity of farmers. Under the initiative, the concept of ‘Lab to Land’ is being put into practice, with agricultural scientists visiting farmers’ fields to share the latest scientific techniques, research-based knowledge and practical information that can help improve agricultural practices and productivity. As part of this nationwide campaign, Krishi Vigyan Kendra (KVK), Ujwa, Delhi, is also conducting special awareness programmes in various villages across rural Delhi from 22 October to 30 November 2026. For this purpose, 25 locations have been selected across the South-West, North-West and North districts of the National Capital Territory of Delhi. These programmes are facilitating direct interaction between farmers and agricultural experts, enabling farmers to access scientific guidance and information relevant to their agricultural needs.Each team constituted under the campaign comprises four to five subject-matter experts, scientists, officials from various departments and innovative farmers. Senior scientists from the Indian Agricultural Research Institute (IARI), Pusa, New Delhi, are also participating in these programmes, sharing the latest agricultural technologies and scientific knowledge with farmers. The teams are working to bridge the gap between agricultural research and its practical application in the field by providing farmers with relevant information and encouraging the adoption of improved farming practices. Under the campaign, KVK Ujwa, Delhi, organised an awareness programme in Qazipur village on 27 October 2026. The main objective was to sensitise farmers to the importance of conserving soil health, carrying out agricultural operations at the appropriate time for the forthcoming rabi season, using fertilisers in a balanced manner and adopting natural farming practices. During the programme, KVK scientists provided information on maintaining soil fertility, undertaking essential agricultural operations at the right time and using fertilisers and other agricultural inputs scientifically and according to actual requirements. Particular emphasis was placed on adopting balanced fertiliser application based on soil health and ensuring the efficient management of agricultural resources. Farmers were encouraged to make informed decisions about the use of inputs to maintain soil productivity while supporting sustainable agricultural practices.Keeping the upcoming rabi season in view, farmers were given detailed information about improved, high-yielding wheat varieties, appropriate crop management practices and the balanced application of fertilisers. They were also made aware of the importance of regularly monitoring mustard crops, identifying major pests and diseases at an early stage, and adopting appropriate management measures. These practices are intended to help farmers prevent potential crop damage, protect crop health and achieve better yields. The scientific guidance provided during the programme aimed to help farmers prepare for the season by adopting suitable crop-management measures and using agricultural inputs in accordance with crop requirements. The programme also highlighted the importance of adopting sustainable agricultural practices, including natural farming, conserving natural resources and maintaining soil health. Farmers were encouraged to use the agricultural resources available to them judiciously and adopt environmentally friendly farming technologies. The emphasis was on promoting practices that support long-term soil fertility, improve resource-use efficiency and contribute to sustainable agricultural production. Through such direct engagement with farmers, the campaign seeks to strengthen awareness of scientific farming methods and encourage the practical adoption of sustainable agricultural techniques at the village level.
