Cotlook Index: 03-11-2026
89.40 (-0.15)
Telangana Cotton Farmers Demand ₹12,000 Per Quintal Amid El Niño Impact
Wednesday, 4th Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Telangana: Cotton production declines due to El Niño; farmers demand a price of ₹12,000 per quintal
Warangal: The impact of El Niño, a deficit in rainfall, and rising cultivation costs have compounded the challenges faced by cotton farmers in Telangana. Amidst a decline in production, farmers are hesitant to sell their cotton at current market rates. They argue that the prevailing prices—ranging from ₹8,500 to ₹9,160 per quintal—are insufficient to cover their escalating production costs. Consequently, farmers are demanding a remunerative price of ₹12,000 per quintal. Farmer organizations have urged both the central and state governments to intervene and initiate commercial procurement through the Cotton Corporation of India (CCI).
Decline in yield due to rainfall deficit
The cotton crop has been adversely affected this Kharif season by delayed rainfall, insufficient precipitation, and a shortage of water for irrigation. According to farmers, while a typical yield is 10 to 12 quintals per acre, this year it has dropped to just 5 to 7 quintals per acre.
Meanwhile, cultivation costs have surged to approximately ₹50,000 per acre. With lower yields and rising expenses, farmers are struggling to even recover their input costs. They state that selling their cotton at current market prices would result in a financial loss.
Reduced market arrivals as farmers await better prices
Due to the drop in production and uncertainty regarding market prices, farmers are holding back their produce. This delay in sales—driven by the hope for better prices—has impacted both the arrival and sale of cotton in local markets. Currently, farmers are selling their cotton in the open market only when absolutely necessary.
Sadanandam, a farmer from the Geesugonda mandal, stated that the central government must ensure a fair price for the farmers' produce. They have demanded that the state government provide a bonus of ₹1,000 per quintal to help mitigate farmers' losses and enable them to continue farming.
Manda Sanjeev, a farmer from Chennaram village in Wardhannapet, stated that drought-like conditions—characterized by reduced yields and rising costs—have intensified the financial pressure on farmers. He urged for the price of cotton to be set at ₹12,000 per quintal and called upon both the central and state governments to announce a special relief package.
Farmer organizations are demanding that the government take prompt action to ensure fair procurement prices, bonuses, and state support, so that cotton farmers can find relief from the current crisis.
Bangladesh Unrest May Impact Yarn and Fabric Exports, Create Opportunities for India
Wednesday, 4th Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Unrest in Bangladesh Likely to Impact Yarn and Fabric Exports
Short-term disruptions possible due to wage-related protests; Indian apparel exporters may secure additional orders in the long run
Ongoing protests over wages in Bangladesh’s garment factories are expected to impact the global textile supply chain, as well as India’s exports of yarn and fabric. According to Indian industry officials, this could lead to short-term trade disruptions. However, in the long term, Indian apparel exporters may find opportunities to secure additional orders.
Sanjay Jain, Group CEO of PDS Limited, noted that the disruption in factory operations in Bangladesh could have a temporary impact on India’s exports of yarn and fabric. Bangladesh accounts for approximately 45% of India’s total cotton yarn exports.
In the 2025-26 fiscal year, India’s total exports to Bangladesh amounted to $10.58 billion, with cotton yarn, fabrics, and handloom products contributing about $2 billion. Jain stated that factory disruptions could affect yarn procurement and increase the risk of payment delays.
Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council, mentioned that the industry is working to adapt to these temporary disruptions. He expressed hope that the situation would return to normal soon.
According to Rahul Mehta, an advisor to the Clothing Manufacturers Association of India, the impact of supply chain disruptions is not immediately apparent. The current protests are relatively smaller in scale compared to previous ones. Nevertheless, a second consecutive wave of protests could heighten concerns among international buyers, who may take labor-related instability into account when placing future orders.
Opportunities for Indian Exporters
According to Jain, the direct impact on the import of Bangladeshi garments into India is likely to remain limited. This trade route was already constrained following the imposition of restrictions on land-based imports last year. However, branded retailers that source garments from Bangladesh may now face supply delays.
A major impact on Christmas-related supplies is unlikely, as the bulk of the stock destined for Western markets for the holiday season is typically shipped by early autumn.
Nevertheless, repeat orders and business for the upcoming season could be affected. Between November and February, Bangladeshi manufacturers secure approximately 40% of their annual export orders. In the event of a prolonged disruption, buyers might shift their orders for the 2027 spring-summer season to other countries. This could create opportunities for Indian textile and apparel exporters to secure new orders.
Rising Cotton Stocks and Weak Textile Demand Pressure China’s Cotton Market
Wednesday, 4th Nov. 2026, by Yash Chouhan, (Source: www.smartinfoindia.com)
Rising Stocks and Weak Demand Pressure China’s Cotton Market
Decline in Spot and Futures Prices; Market Outlook Remains Soft
China’s cotton market faced downward pressure throughout October 2026. The arrival of the new harvest and low operating rates at textile mills weighed on prices. Despite high costs for seed cotton, cotton lint failed to gain sufficient price support.
Prices initially rose at the start of the harvest, but increased availability—driven by accelerated harvesting and ginning activities in Xinjiang—pushed prices lower. Spinning and weaving mills are currently operating below capacity, which has limited consumption and squeezed margins for ginners.
Spot and Futures Prices
As of October 29, the spot price for 3128B-grade cotton lint in China stood at approximately 16,845 yuan per tonne—a 3.2% decline since the beginning of the month. On the Zhengzhou Commodity Exchange, January cotton futures fell by 3.8% in October, settling at 15,170 yuan per tonne. The overall market sentiment remains soft.
Rising Stocks and Supply
China’s cotton inventory stood at 1.77 million tonnes at the end of September, rising to 2.61 million tonnes by October 15 and 2.91 million tonnes by October 23. By October 22, 80.1% of the national crop had been harvested, with reports indicating that over 90% of the harvest in Xinjiang is complete—a process facilitated by favorable weather conditions.
Weak Textile Demand
In Xinjiang, the average price for machine-picked seed cotton between October 19 and 25 was 7.33 yuan per kilogram, an increase of 16.7% year-on-year. However, the soft prices for cotton lint have negatively impacted the profitability of ginners. By the end of October, spinning mills were operating at 69% capacity, while weaving mills were at 35%. In mid-October, textile companies held an industrial cotton stock of approximately 831,900 tonnes. Weak yarn orders and limited buying activity continue to exert pressure.
Market Outlook
In the near term, Zhengzhou cotton futures are likely to face mild downward pressure. However, the high cost of seed cotton may limit any decline. A sustained recovery will require an increase in yarn orders and mill operating rates, alongside a reduction in inventory levels. An improvement in demand is essential
India’s Cotton Consumption Could Reach 425 Lakh Bales as Spinning Capacity Expands
Wednesday, 4th Nov. 2026, (Source: www.textilevaluechain.in)
With 28.5–30 lakh new spindles expected to enter production in 2027, industry commentary calls for a national mission to raise domestic cotton output to 5 crore bales by 2030–31.
The extension of the customs duty exemption on cotton imports until December 31 provides temporary relief to India's spinning industry amid price volatility and concerns over domestic fibre availability. However, with new spinning capacity expected to increase cotton consumption to 400–425 lakh bales in 2027–28, the industry faces growing pressure to strengthen domestic cotton production and productivity.
Cotton Import-Duty Exemption Provides Temporary Relief
The government's decision to extend the customs duty exemption on cotton imports until December 31 gives domestic spinning mills continued access to international supplies from Brazil, the United States, Australia, Africa and other cotton-producing regions.
Imported cotton offers mills an alternative when domestic arrivals are limited or local prices rise beyond import parity. It also provides a price-balancing mechanism that can help manage raw-material costs and protect operating margins.
However, greater access to international supplies also increases competition for Indian farmers and ginners. Productivity, fibre quality and price competitiveness will become increasingly important for domestic cotton to remain competitive. Imported Cotton Influences Domestic Price Movements The availability of imported cotton can limit the extent to which domestic prices rise, as mills can compare local prices with import parity.
Domestic arrivals, international cotton prices and exchange-rate movements will therefore remain important factors in determining market prices. While the exemption offers a supply option for spinners, the longer-term challenge is to improve domestic production and competitiveness without creating structural dependence on imported fibre. New Spinning Capacity Could Push Cotton Consumption to 425 Lakh Bales Industry estimates indicate that approximately 28.5–30 lakh new spindles are expected to be commissioned between January and December 2027. As these installations become operational and reach commercial utilisation, India's cotton requirements could increase substantially.
Cotton consumption during 2027–28 is projected to potentially reach 400–425 lakh bales of 170 kg each, compared with the current-season estimate of 365 lakh bales. This would represent an increase of approximately 35–60 lakh bales. The expansion presents a supply challenge for the domestic cotton sector. While additional spinning capacity can support yarn production, employment, value addition and textile exports, insufficient domestic cotton availability could increase reliance on overseas suppliers. The industry's manufacturing expansion will therefore need to be supported by a corresponding improvement in domestic fibre production. Proposed Mission to Raise Cotton Production to 5 Crore Bales The industry commentary proposes a national-level white paper and action plan under Mission 5 Crore Bales by 2030–31. The proposed initiative would bring together farmer organisations, Cotton Farmer Producer Organisations (FPOs), ginners, spinners, textile manufacturers, research institutions and government departments.
The suggested production trajectory is:
Cotton season Proposed production target
2026–27
280 lakh bales
2027–28
330 lakh bales
2028–29
385 lakh bales
2029–30
440 lakh bales
2030–31
500 lakh bales
These figures are proposed industry targets, not official production forecasts, and would require annual review.
Key Areas for Improving Domestic Cotton Productivity
The proposed mission identifies several interventions to increase output, including high-yielding seeds, improved agronomy, efficient water management, mechanisation, integrated pest management and wider adoption of modern farming technologies.
The suggested implementation measures include:
Industry Focus on Farming Practices and Research
The commentary also calls for the textile industry to examine the factors behind stagnant cotton yields and insufficient productivity improvement.
While seed quality and availability remain important, it argues that progress will also depend on farming practices, research partnerships, technology adoption and greater willingness to experiment with new approaches.
It further cautions against allowing the urgency for reform to fade when market conditions improve. Sustained coordination between farmers, industry participants and research institutions is identified as necessary for long-term productivity gains.
District-Level Productivity Improvement as a Strategic Priority
The commentary recommends that the 5-crore-bale ambition should be implemented through a district-wise productivity improvement programme rather than focusing only on increasing cultivated acreage.
Each major cotton-growing district should have a defined yield-improvement target based on its soil conditions, climate, irrigation facilities and existing productivity.
The proposed interventions include:
The proposed yield ambition of 800 kg of lint per hectare is also highlighted, with region-specific and scientifically validated interventions recommended to support its achievement.
Building Domestic Fibre Security Alongside Spinning Capacity
The commentary notes that surplus and competitively priced cotton has historically supported the growth of the textile industry. Reliable fibre availability can encourage investment, support capacity utilisation, enable downstream value addition and strengthen exports.
With 28.5–30 lakh additional spindles expected and cotton consumption potentially reaching 400–425 lakh bales in 2027–28, the need to expand domestic production has become more pressing.
Imports may help bridge temporary supply gaps, but the proposed strategy is for them to supplement domestic production rather than become a permanent source of fibre security.
The central recommendation is to build domestic competitiveness through more productive farms, improved cotton quality and stronger collaboration across the value chain.
“BUILD COMPETITIVENESS, NOT DEPENDENCE” is the guiding message of the proposed 5-crore-bale mission, which aims to align India's cotton production ambitions with the expansion of its spinning and textile manufacturing capacity.
BTMA targets stronger UK-India partnerships at India ITME 2026
Wednesday, 4th Nov. 2026, (Source: www.fibre2fashion.com)
Insights
BTMA will use India ITME 2026, taking place on 4–9 December in Greater Noida, to strengthen UK–India textile machinery partnerships and expand export opportunities.
Supported by the UK–India Textile Machinery Coalition, members will showcase innovations in automated fabric inspection, laboratory testing and colour assessment to support efficient, competitive and sustainable manufacturing.
The British Textile Machinery Association (BTMA) is looking to India ITME 2026 as a major opportunity to strengthen industrial partnerships and mutually expand exports, following the introduction of the UK-India Free Trade Agreement and the formation of the UK-India Textile Machinery Coalition (UKITMC). Taking place from December 4-9th at the India Exposition Mart in Greater Noida, the exhibition is expected to attract more than 1,800 exhibitors and 150,000 visitors, reflecting India's position as one of the worl’'s largest textile manufacturing markets. The event comes at a significant moment for trade relations between the two countries. The Free Trade Agreement, which entered into force in July 2026, is expected to improve market access and competitiveness for British engineering and technology suppliers, while supporting the continued expansion of India's textile and apparel industries. The BTMA has also established the UKITMC to strengthen cooperation between machinery manufacturers in the two countries, encourage technology exchange and develop new commercial opportunities. “India represents an enormous opportunity for British textile machinery manufacturers, particularly as its textile industry moves towards higher levels of automation, quality assurance and sustainable production,” says BTMA CEO Jason Kent. “The combination of the Free Trade Agreement and our new coalition provides a much stronger framework for long-term collaboration. Our members have specialist technologies that can make a real difference to the efficiency and competitiveness of Indian textile manufacturers, and India ITME provides an ideal platform for developing those relationships.” Recent product launches from BTMA members demonstrate the breadth of British expertise and many innovations will be presented in India for the first time.
In fabric inspection, for example, Shelton Vision has further developed its WebSpector technology to detect defects in complex patterned, printed and coated fabrics, including printing faults identified directly on production lines. Meanwhile, Roaches International has completed its largest integrated laboratory equipment order to date, supplying 18 testing machines to Indonesia and is introducing further automation through its Martindale AXYZ abrasion and pilling tester and Sentire fabric handle measurement system. Colour consistency is another increasingly important requirement across international textile supply chains, with VeriVide advancing LED-based assessment through its UltraView light booth and associated digital colour management technologies. “Such ongoing developments demonstrate the strength of British engineering across the textile manufacturing value chain, from advanced fibre production to automated inspection and testing,” Jason Kent adds. “We see India as a long-term partner in innovation and industrial development, and the opportunities for cooperation have rarely been greater.”
US cotton futures hit four-month low amid harvest pressure
Wednesday, 4th Nov. 2026, (Source: www.fibre2fashion.com)
Insights
US cotton futures fell to a four-month low amid harvest selling and weak grains, with the December 2026 contract settling 0.80 per cent lower at 77.04 cents.USDA data showed 63 per cent of the US crop harvested by November 1, nine points ahead of the five-year average. Lower crude cut polyester costs, adding pressure; analysts see stronger US cotton demand later.
US cotton futures fell to a four-month low on Tuesday, weighed down by harvest-related selling and weakness in the grains market. The most active December 2026 contract settled 62 points, or 0.80 per cent, lower at 77.04 cents per pound, compared with 77.66 cents in the previous session. During intraday trading, the contract dropped to 76.85 cents, its lowest level since early July. According to market analysts, the Chicago market remained under pressure, and cotton futures appeared to be searching for a harvest low. Although the near-term outlook remained weak, they believed global supply-demand fundamentals could support stronger demand for US cotton towards the end of the year. The latest US Department of Agriculture (USDA) Crop Progress report showed that 63 per cent of the US cotton crop had been harvested as of November 1, up 11 percentage points from 52 per cent in the previous week. Harvest progress was also nine percentage points ahead of the five-year average of 54 per cent. Meanwhile, the proportion of cotton bolls opening reached 92 per cent, compared with 89 per cent a week earlier, but remained below the five-year average of 95 per cent. Weakness in the grains market added to bearish sentiment. CBOT corn futures declined to a four-month low amid concerns over US export sales, while wheat futures hovered near a four-month low as traders monitored the prospects of Russia–Ukraine peace negotiations. The US dollar traded within a narrow range on Tuesday as investors assessed uncertainty surrounding a possible US–Iran agreement and the outcome of the US mid-term elections. International crude oil prices declined by 1 per cent to their lowest level in nearly four weeks. Traders weighed diplomatic efforts to end the conflicts involving Ukraine and Iran against concerns that recent attacks could further disrupt energy supplies. Lower crude oil prices also reduced the production cost of polyester, a competing fibre, adding pressure on cotton prices. Market sentiment remained predominantly bearish, with rapid harvesting, weak grain prices and declining crude oil outweighing expectations of stronger US cotton demand later in the year. The possibility of a harvest-related price bottom and a relatively stable dollar provided some support. From a technical perspective, the December contract settled at 77.04 cents, marginally below its October 2 low of 77.05 cents. Its intraday decline to 76.85 cents also breached the July 2 low of 76.87 cents. No further downside support level was identified in the available data. On the upside, 77.05 cents has emerged as an immediate resistance level, followed by 79.23 cents and the 79.80–80.00 cents range.
Overall, US cotton futures remain under pressure as the accelerated harvest and weakness across commodity markets continue to outweigh expectations of improving demand. The breach of recent lows highlights the fragile near-term market outlook, although the possibility of a seasonal harvest bottom could influence trading sentiment in the coming sessions.This morning (Indian Standard Time), December 2026 cotton traded at 78.27 cents per pound (up 1.23 cents). Cash cotton was quoted at 74.79 cents per pound (down 0.62 cent), while the March 2027 contract traded at 82.04 cents per pound (up 1.14 cents). The May 2027 contract traded at 83.69 cents per pound (up 1.14 cents), the July 2027 contract at 84.03 cents per pound (up 0.98 cent), and the October 2027 contract at 78.54 cents per pound (up 1.05 cents). A few contracts remained at their previous closing levels, with no trading recorded so far today.
MANAGE Hyderabad Recognised as Centre of Excellence-Skills in Agriculture Sector by MSDE
Wednesday, 4th Nov. 2026, (Source: www.pib.gov.in)
The National Institute of Agricultural Extension Management (MANAGE), Hyderabad an autonomous organisation working under the Ministry of Agriculture & Farmers Welfare, Government of India has been recognised as a Centre of Excellence-Skills (CoE-Skills) in the Agriculture Sector by the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India.
The Institute, established in 1987, aims at strengthening the agricultural extension system in the country. The Institute offers training, consultancy, research and policy support in the field of agricultural extension. MANAGE also offers Educational Programs like Post Graduate Diploma in Agri-warehousing Management (PGDAWM) and Post Graduate Diploma in Agricultural Extension Management (PGDAEM). The Institute also offers a two years regular program called Post-Graduate Diploma in Management (Agri-Business Management). MANAGE has been playing an important role in strengthening the capacities of agricultural extension functionaries, promoting innovative approaches in agricultural extension and facilitating entrepreneurship development in the agricultural sector. Through its training programmes, knowledge-sharing initiatives and institutional activities, the Institute works towards equipping agricultural professionals and aspiring entrepreneurs with relevant knowledge and competencies.
The recognition as a Centre of Excellence has been formally conferred through a Certificate of Recognition presented by the Ministry at a ceremony held at Kaushal Bhawan, New Delhi, on 2 November 2026. The Certificate was presented to MANAGE by Smt Debashree Mukherjee, Secretary, Ministry of Skill Development and Entrepreneurship (MSDE), Government of India. The recognition is valid for a period of three years.
The empanelment will provide an opportunity to the Institute to diversify towards skilling which is vital for the growth of agriculture and the country. It will further strengthen the engagement of MANAGE in agricultural skill development and entrepreneurship in alignment with the Government of India's vision of creating a skilled, competent and entrepreneurial workforce. This recognition reinforces MANAGE's continued commitment to advancing agricultural extension, strengthening institutional capacity, promoting entrepreneurship and contributing to the development of a skilled and dynamic agricultural workforce in the country. The vision to contribute to the skill development mission of the country, with empanelment being a key component of this initiative, was developed under the leadership of Shri Sanjay Kumar Agarwal, IAS, Director General (MANAGE) and Joint Secretary (Ext) by a team consisting of Dr K C Gummagolmath, Dr Veenita Kumari and Dr Shalendra. Shri Sanjay Kumar Agarwal, IAS, Director General (MANAGE) and Joint Secretary (Ext) described the empanelment as a significant milestone reflecting the dedication, hard work and high standards upheld by the Institute in the field of capacity building. He emphasised that this recognition brings with it great responsibility to further strengthen the standards for program execution and enhance the contribution of the Institute to the nation’s skilling mission. The Institute, established in 1987, aims at strengthening the agricultural extension system in the country. The Institute offers training, consultancy, research and policy support in the field of agricultural extension. MANAGE also offers Educational Programs like Post Graduate Diploma in Agri-warehousing Management (PGDAWM) and Post Graduate Diploma in Agricultural Extension Management (PGDAEM). The Institute also offers a two years regular program called Post-Graduate Diploma in Management (Agri-Business Management). MANAGE has been playing an important role in strengthening the capacities of agricultural extension functionaries, promoting innovative approaches in agricultural extension and facilitating entrepreneurship development in the agricultural sector. Through its training programmes, knowledge-sharing initiatives and institutional activities, the Institute works towards equipping agricultural professionals and aspiring entrepreneurs with relevant knowledge and competencies.
