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Higher budgetary support for cotton procurement by the Cotton Corporation of IndiaRoSCTL extended for garment exports, which will provide the stable policy regime essential for long-term planning in the textile sectorThe Interim Budget 2024 presented on Thursday saw ₹1,000 crore higher allocation for the textile and apparel sector. Of the total allocation of ₹4,392.85 crore compared with ₹3,443.09 crore last year, the Budget provided ₹600 crore for the procurement of cotton by the Cotton Corporation of India (CCI) under the price support scheme, though there was almost no allocation for this in the previous financial year. With a slump in cotton prices, the CCI is buying cotton from farmers in several parts of the country at the minimum support price (MSP) since the beginning of the cotton season in October 2023.The Budget also increased the allocations for schemes for handicraft development, the National Technical Textiles Mission, and the PM MITRA scheme.Also read: Central govt. wants to create 75 textile hubs across India, says Piyush GoyalThough textile and apparel exports have been declining for more than a year, allocations for export promotion studies and activities was reduced to ₹5 crore from ₹59 crores in 2023-2024.Meanwhile, in a separate press release, the Ministry of Textiles said the Union Cabinet chaired by Prime Minister Narendra Modi had approved the continuation, till March 31, 2026, of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for the export of apparel and garments. This will provide the stable policy regime essential for long-term planning in the textile sector.The Cabinet had approved the scheme till the end of March 2020 and extended it till March 31, 2024. Now, it will continue for another two years. The Budget allocation for the scheme this year is ₹9,246 crore.Welcoming the extension of the RoSCTL, the textile industry hoped the full Budget would address the need for changes in customs duties. Source : The Hindu

The rupee opened strongly against the dollar today.The rupee opened strongly against the dollar today.Today, the rupee opened 9 paise stronger at Rs 82.87 against the dollar. At the same time, on Thursday, the rupee strengthened by 8 paise and closed at Rs 82.96 against the dollar.Today BSE Sensex opened with a rise.Today, BSE Sensex opened at the level of 72200.96 points with a gain of about 555.66 points. Whereas NSE's Nifty opened with a gain of 171.30 points at the level of 21868.80 points. A total of 2,137 companies started trading in BSE today.

This evening, the rupee strengthened by 7 paise and closed at Rs 82.97 against the dollar.Whereas today the Sensex closed at the level of 71,645.30 with a fall of 106.81 points or 0.15 percent. Whereas Nifty closed at the level of 21697.45 with a fall of 28.25 points or 0.13 percent.

Telangana : Sangareddy Cotton farmers protest as CCI closes purchasing centreFarmers led by CPI (M) activists staged a protest as the Cotton Corporation of India has decided to close the cotton purchasing centre at Sadasivapet town from February 1While a few lorries and tractors carrying the cotton lined up at the CCI purchasing centre, the CCI officials have decided to close the Centre for five days informing the farmers that the jinning mill was filled with the cotton due to increased arrivals during the last few days.However, the farmers have alleged that the CCI was planning to close it down permanently for this year though a huge number of farmers have not yet sold their produce this year.

Recycled yarn: Mills’ new spin on sustainability goalsAhmedabad: Cotton spinning mills in Gujarat are taking a sustainable approach by recycling old clothes into recycled yarn. This eco-friendly initiative is gaining traction, with global brands actively retailing clothes made from recycled yarn. Typically, these recycled yarns consist of 70% of fresh cotton and 30% of recycled cotton yarn. Five spinning mills in the state have adopted this practice.Dr Bharat Boghra, chairman of the Spinners’ Association Gujarat (SAG), said, “The trend of recycling can be seen in various sectors. Five spinning mills have embraced this initiative due to growing demand, and more mills will follow suit if the concept proves successful.”Sources reveal that spinning mills reduce their reliance on the market by recycling old clothes. Omax Cotspin Pvt Ltd in Dhrangadhra, for example, recycles around 500 tonnes of old garments a month, producing recycled yarn to blend with virgin cotton yarn for global and domestic brands. Jayesh Patel, director of Omax Cotspin, said, “International consumers are aware about the usage of water, energy and manpower needed to produce clothes. Many global brands have set different goals for sustainability by 2030 and have increased focus on recycling to achieve their targets. We have installed a shredding machine in our factory and recycle around 500 tonnes of old garments every month. A number of global and domestic brands encourage the use of recycled yarn and we supply to them. We supply fresh yarn and recycled yarn based on demand.”Vaibhavlaxmi Spinning Mills Pvt Ltd in Kadi has also joined the initiative. Niranjan Patel, the company’s director, said, “We recycle waste generated during yarn-making and old fabric to turn it into fibre again. Increasing awareness of sustainability and steady demand for recycled yarn are driving factors.” The company incorporates 5-7% recycled yarn in its total production.

The rupee strengthened by 7 paise to close at Rs 83.04 against the dollar this evening.Today, the Sensex closed at the level of 71752.11 points with an increase of about 612.21 points. At the same time Nifty closed at the level of 21725.70 points with an increase of 203.60 points.

Cotton Dropped As World Consumption Is Forecast Lower Than Last MonthMCX Cotton faced a decline of -0.42%, settling at 57380, influenced by changes in global consumption and production forecasts. World consumption for the 2023/24 season is projected to be 1.3 million bales lower than the previous month's estimates, with reductions for countries including India, Indonesia, Pakistan, Uzbekistan, and Turkey. However, ending stocks are forecast to be 2.0 million bales higher, driven by increased beginning stocks and production along with lower consumption. Technically, the cotton market is undergoing fresh selling, with a 2.54% gain in open interest, settling at 283. Prices have decreased by -240 rupees. Cotton finds support at 57260, with the potential for a test of 57150 levels on the downside. On the upside, resistance is expected at 57540, and a breakthrough could lead to a test of 57710 levels.

Arrivals flood local markets even as global rates rise to near 3-month high  India’s domestic cotton prices are still stuck at the bottom despite volatile movements while global cotton prices have surged to near three-month highs. Textile industry players and traders say they have not seen the market fluctuate in such a volatile manner.According to Anand Popat, a Rajkot-based cotton, yarn and cotton waste trader, prices moved down on an hourly basis on Monday with any change in the fundamentals. “We are witnessing a short-term fluctuation with prices going up quickly and then taking a sharp u-turn,” said an industry insider, who did not wish to be identified. On Tuesday, prices of Shankar-6, the benchmark for exports, declined to ₹55,150 per candy of 356 kg. Prices are the lowest since January 18, when it ruled at this level before rising to ₹56,050 on January 25. Open interest upOn the InterContinental Exchange (ICE), New York, cotton March contracts quoted at 84.34 US cents a pound (₹55,450/candy) early on Tuesday. Over the past two sessions, prices on China’s Zhengzhou for March contracts have increased to 16,050 yuan a tonne (₹66,875/candy), up from 15,855 yuan (₹66,425) during the weekend.The open interest on ICE has increased to 0.46 million US bales (62 lakh Indian bales (170 kg each) signalling some bullishness, according to traders. “Currently, arrivals exceed demand. They are about two lakh bales (170 kg each) on a daily basis. Mills are buying some 1.25 lakh bales, additionally about 25,000 bales, while the Cotton Corporation of India (CCI) 25,000 bales and multinational companies (MNCs) 15,000-25,000 bales,” said Popat.MNCs are providing support to the cotton market with their purchases making up 40 per cent of the arrivals, said Ramanuj Das Boob, a sourcing agent for multinationals in Raichur, Karnataka.Last year stocks“Their purchases are providing liquidity in the market. They seem to be hedging by selling on ICE and buying here,” said Das Boob. A MNC official, who did not wish to be identified, said MNCs cannot go flat and need to hedge their positions on ICE. Das Boob said the Indian cotton crop was good and spinning mills were buying, though slowly. “Arrivals have been higher and they could be 170-175 lakh bales by January end and they are likely to be good in February too. Prices may rise once the arrivals drop to a trickle,” he said. Arrivals gave the impression that cotton production may be higher this year but they are faster than last year, said the MNC official. “In Telangana, arrivals are a shocking 35,000-40,000 bales daily. It has to drop to around 4,000 bales for prices to pick up. Popat said farmers are bringing to the market the stocks they held up last year, mixing with this year’s crop. “It is possible that the crop is good and last year’s held up stocks are also being brought to the market,” said the MNC official.Short-term swingsAccording to the Cotton Association of India, arrivals on Tuesday were 2.02 lakh bales with Maharashtra accounting for 60,000 bales, Gujarat 48,000 bales and Telangana 34,000 bales. But Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), said, “In this volatile environment, textile markets are behaving with short-term swings, both upside and downside. This leads to mills taking very careful and calibrated steps in cotton buying decisions.” Mills are buying cotton based only on their “own yarn and fabric order visibility,” he said. Yarn movement in the domestic market is better than on the export front. “This means, garment manufacturers are getting orders,” said Poppat. However, he said the higher arrivals trend will likely not continue for long. The MNC official said the higher arrivals may end soon.Cotton output estimateHowever, Dhamodharan said, “Yarn spreads continue to be at lower levels in major products with compressed margins and this factor also makes mills more careful in their buying decisions.”The industry insider said the trade would like to be bullish though several factors, including speculation, decide on the price behaviour. Traders such as Popat are pegging cotton production at 315 lakh bales this season, despite a section pegging it lower. According to the Committee on Cotton Production and Consumption, the production this season (October 2023-September 2024) is estimated at 317.57 lakh bales against 336.60 lakh bales the previous season. source : businessline

The rupee opened with weakness against the dollar today.The rupee opened with weakness against the dollar today. Today the rupee opened with a weakness of 1 paise at Rs 83.11 against the dollar. At the same time, on Tuesday, the rupee strengthened by 3 paise and closed at Rs 83.10 against the dollar.Today BSE Sensex opened with a decline.Today BSE Sensex opened with a fall of 194.24 points at the level of 70945.66 points. Whereas NSE's Nifty opened with a fall of 39.40 points at the level of 21482.70 points. Today, trading started in a total of 2,102 companies in BSE.

This evening, the rupee strengthened by 2 paise and closed at Rs 83.11 against the dollar.This evening the Sensex fell 802 points and closed at 71,140. Nifty fell 216 points and closed at 21,522.

Red Sea Crisis May Not Right Away Hit Textile Sector: CRISILPlayers operating in sectors like textiles, chemicals and capital goods may not be immediately impacted because of better ability to pass on higher costs, or because of a weaker trade cycle.“But a prolonged crisis over the next few quarters can make these sectors also vulnerable as working capital cycles would get stretched with orders put on hold,” according to CRISIL Ratings.According to CRISIL, 75 percent of home textiles are exported, mainly to Europe, North America, North Africa and the Middle-East and their mid-teen margins can absorb higher freight rates for some time.Indian companies use the Red Sea route through the Suez Canal to trade with Europe, North America, North Africa and parts of the Middle-East.These regions accounted for 50 percent of India’s exports worth Rs 18 lakh crore and 30 percent of imports worth Rs 17 lakh crore in the earlier fiscal.Increasing attacks on ships sailing in the Red Sea region since November 2023 have persuaded shippers to consider the alternative, longer route past the Cape of Good Hope.This has not only stretched delivery time by 15-20 days, but also increased the transit cost substantially because of incremental freight rates and insurance premium.“While the immediate impact of the crisis would be low for most of India Inc., a prolonged strife can affect the profitability and working capital cycle of export-oriented industries,” the ratings agency added.“The extent of this will vary depending on sectoral nuances. Supply chain issues could also intensify, curbing trade volume and renewing inflationary pressures,” CRISIL observed.