Recent News

India’s Textile & Apparel Exports Slip in FY26 Amid Weak DemandIndia’s textile and apparel exports declined by 2.22% in FY26 compared to the previous fiscal year, according to data released by the Ministry of Commerce. The downturn comes a year after the United States imposed higher tariffs, which have continued to impact export performance.In March 2026, exports fell sharply by 14.02% year-on-year, reflecting weakening demand and ongoing trade pressures.A detailed analysis by the Confederation of Indian Textile Industries shows that textile exports dropped by 2.86% during FY26, while apparel exports declined by 1.36%. The slowdown was even more pronounced in March, with textile exports decreasing by 9.91% and apparel exports contracting significantly by 18.99% compared to the same period last year.Overall, the combined textile and apparel exports for March 2026 recorded a year-on-year decline of 14.02%.Meanwhile, raw cotton imports surged by nearly 55% during FY26. This increase followed the government’s decision to ease import duties for a limited period, from August 28, 2025, to December 31, 2025.read more :- The rupee opened at 93.28, gaining 09 paise.

The rupee opened at 93.28/USD, up 09 paise.On Thursday, the Indian rupee opened at 93.28 against the dollar, gaining 09 paise, whereas it had closed at 93.37 on Wednesday.READ MORE :- Rupee Drops 20 Paise, Ends at 93.37 Against Dollar 

The Indian rupee weakened by 20 paise on Wednesday to settle at 93.37 against the US dollar, compared to its opening price of 93.17 in the morning.Meanwhile, equity markets ended on a strong note, with the Sensex surging 1,263.67 points, or 1.64 percent, to close at 78,111.24, and the Nifty climbing 388.65 points, or 1.63 percent, to settle at 24,231.30.read more :- Major Blow to Textile Industry, ₹4,000 Crore Loss: Raees Shaikh

Maharashtra's textile industry suffered a loss of ₹4,000 crore: MLA Raees ShaikhSamajwadi Party's Bhiwandi MLA Rais Shaikh said on Tuesday that due to the ongoing conflict in West Asia, the state's textile industry has suffered a loss of about ₹4,000 crore in just one month.Bhiwandi in Thane district, a major textile hub of the Mumbai Metropolitan Region, has been worst affected by the crisis. The MLA has demanded an immediate financial support package for the industry and warned that if timely steps are not taken, there is a danger of the industry coming to a standstill. This may also affect the jobs of millions of skilled and unskilled workers.In a letter to Chief Minister Devendra Fadnavis, the MLA said that due to rising prices of cotton and yarn, disruption in the supply of raw materials and blockage in export channels, mills are facing pressure to stop production two days a week.In this letter sent on April 10, citing the data of the State Textile Corporation, it has been said that the industry suffered huge losses due to the halt in exports in March 2026.There are about 9.48 lakh power looms operating in Maharashtra, which is about 39% of the total power looms in the country, apart from this there are also about 4,000 hand looms. This industry is considered to be the biggest employment generating sector in the state after agriculture.read more :- Cotton Procurement Policy to Change: Bhavantar Scheme to Replace MSP

Change in Cotton Procurement Policy: Preparations Underway to Implement ‘Bhavantar Scheme’ Instead of MSP ProcurementA major policy update regarding the cotton market has emerged. The Cotton Corporation of India (CCI) is now taking steps toward implementing the ‘Bhavantar Scheme’ (Price Difference Scheme) instead of directly procuring cotton at the Minimum Support Price (MSP). A pilot project for this new system is set to be launched in Andhra Pradesh and Telangana during the 2026-27 season. The industry has welcomed this proposal and has demanded its implementation across the entire country.Until now, the government provided a safety net to farmers by procuring cotton at the MSP through the CCI whenever market prices dipped. However, over the last two seasons, the CCI faced immense pressure and was compelled to procure over 100 lakh bales of cotton. Despite this effort, not all farmers were able to avail the benefits of the MSP.In light of this challenge, a meeting was held in December 2024, chaired by NITI Aayog member Ramesh Chand, to deliberate on how to ensure better benefits reach the farmers. During this meeting, the decision was taken to move forward with the ‘Bhavantar Scheme.’What is the Bhavantar Scheme?Under this scheme, farmers will sell their cotton in the open market. If the prevailing market price falls below the MSP, the difference between the two prices will be deposited directly into the farmer's account via DBT (Direct Benefit Transfer).For instance, if the MSP is ₹8,110 per quintal and a farmer receives ₹7,000 in the open market, the government will directly transfer the difference of ₹1,110 into their bank account.How will payments be processed?This scheme will be implemented under the Central Government's PM-AASHA program. Registered farmers will be able to sell their cotton at mandis (agricultural markets) at their own convenience, and the amount representing the price difference will be credited directly to their bank accounts.What are the concerns?Experts believe that while the scheme appears effective on paper, its ultimate success will depend heavily on its effective implementation. Rather than relying solely on the Bhavantar scheme, the option of MSP-based procurement should also remain available. Imposing a specific time limit on the scheme could increase the potential for market manipulation. Benefits for the Industry and Farmers  Farmers will have the freedom to sell their produce at any time, according to their needs.  They will receive the benefit of the MSP even if market prices fall.  Industries will have access to cotton at prevailing market rates.   This could make cotton, yarn,    and textile exports more competitive in the global market.Overall, the ‘Bhavantar Scheme’ has the potential to bring about a significant transformation in the cotton market; however, its success will depend on its transparent and effective implementation.read more :- Threat to pulses, soybean and cotton crops due to weak monsoon

Weak Monsoon: Pulses, Soybean, Cotton AffectedA weak monsoon is expected to have its most significant impact this year on crops such as pulses, soybean, and cotton, while rice appears relatively secure thanks to superior irrigation infrastructure.According to an analysis by Moneycontrol, the forecast for a below-normal monsoon in 2026 poses a heightened threat to crops cultivated primarily in rain-dependent regions. On April 13, the India Meteorological Department (IMD) projected monsoon rainfall at 92% of the Long Period Average (LPA)—marking the weakest initial forecast in approximately 26 years. This could adversely affect sowing, production, and rural demand, while also raising the risk of increased pressure on food inflation.Although current reservoir water levels remain satisfactory—with storage recorded at 27% above normal as of April 2—deficient rainfall in the future could impact water replenishment and the availability of water for Rabi crops. While risks will persist even in irrigated states, the greatest challenge lies in those regions that are entirely dependent on the monsoon.Among the various crops, soybean appears to be at the highest risk. Maharashtra and Madhya Pradesh collectively account for 83.6% of the country's total production; however—particularly in Maharashtra—irrigation coverage falls significantly below the national average, thereby exacerbating the risk.The situation for cotton is quite similar. Maharashtra, Gujarat, and Madhya Pradesh together contribute approximately 66% of the total output. Low irrigation coverage in Maharashtra renders the crop more vulnerable, whereas Gujarat's superior irrigation infrastructure offers some measure of relief.A weak monsoon could also have repercussions for the broader economy. According to Aditi Nayar, Chief Economist at ICRA Ltd, the combined impact of a weak monsoon and geopolitical tensions in West Asia could fuel inflation and dampen economic growth. She projects that average CPI inflation in FY27 could hover above the 4.5% mark. Meanwhile, CareEdge's Chief Economist, Rajani Sinha, believes that the inflation rate could hover around 4.6%. Rising oil prices and climatic factors such as El Niño could exert additional pressure on this figure.Overall, the potentially weak monsoon of 2026 is emerging as a significant risk for both rain-fed agriculture and inflation.read more :- The rupee opened at 93.17 gaining 21 paise.

The rupee opened at 93.17/USD, up 21 paise.On Wednesday, the Indian rupee opened 21 paise higher against the dollar at 93.17, whereas it had closed at 93.38 on Monday.READ MORE :- Challenge to increase cotton cultivation, sowing from 15th April

The challenge is to increase the area of cotton in Sonipat, sowing will start from April 15Increasing the continuously decreasing cotton area in Sonipat has become a big challenge for the Agriculture Department this time. Last year, cotton was cultivated in only 1200 acres in the district, which is much less than previous years. In such a situation, the department has formed special teams to make the farmers aware, which will go from village to village and provide information about the benefits of cotton cultivation and disease management.According to the Agriculture Department, the appropriate time for sowing cotton in Kharif season is from 15th April to 15th May. Due to recent light rain and drizzle, there is sufficient moisture in the fields, which will reduce the need for initial irrigation and the conditions have become favorable for sowing.The department has advised farmers to sow seeds only after seed treatment, so that the crop can be protected from early diseases and pests.If we look at the data, the area under cotton is continuously decreasing—5400 acres in 2022, 4500 acres in 2023, 2700 acres in 2024 and dropped to only 1200 acres last year. There are many reasons behind this decline, including pink bollworm infestation, rain at the time of harvest, dependence on laborers and low prices in the market.Farmers are now giving more priority to paddy cultivation, due to which the area under cotton is further shrinking.According to Sub-Divisional Agriculture Officer Dr. Sandeep Verma, the department has prepared a special strategy to increase the area under cotton. Also, this time the weather is also considered favorable for cotton sowing, due to which better production is expected.read more :-Compensation to be provided for selling cotton below MSP.

Big relief for cotton farmers: Will get direct compensation if sold at a price lower than MSPWith the aim of providing relief to cotton farmers from market price fluctuations, the Central Government has taken a new step under the PM AASHA scheme. Through this system called ‘Gap Support Mechanism’, if farmers sell their produce at less than the Minimum Support Price (MSP), the government will transfer the difference amount directly to their bank accounts.How will the plan work?Under this system, if the price of cotton in the market goes below the MSP, the difference between the MSP and the actual selling price will be paid by the government. this payment It will be deposited directly into the accounts of farmers through Direct Benefit Transfer (DBT), so that they can be saved from financial loss.For example, if the MSP is Rs 7500 per quintal and the farmer gets only Rs 6500 in the market, then the remaining Rs 1000 will be given as compensation by the government.Where is it applicable now?At present this scheme has been implemented as a pilot project in Andhra Pradesh and Telangana. If it is successful, it can be implemented across the country. What benefit will farmers get?Protection from falling prices freedom to sell in the open market Reduction in dependence on government procurement centers freedom to choose buyer What will farmers have to do?To avail the benefits of the scheme, farmers should:You will have to register your crop in the ‘e-crop’ system. Sales receipts must be kept safefurther prospectsIf this model is successful, the government can extend it to other cash crops also. This is expected to bring major improvements in the agricultural price support system and make farmers' income more stable.read more :- Cotton promoted in Punjab, 33% subsidy on seeds

Initiative to revive cotton in Punjab: 33% subsidy announced on seedsTaking a significant step to revive the declining cotton cultivation in the state, the Punjab government has announced 33% subsidy on indigenous and Bt cotton seeds. The initiative aims to attract farmers back to the cultivation of cotton, once known as the “white gold” of Punjab.Under this scheme launched by the Agriculture Department, farmers can apply online on the government portal between April 20 and May 31. This subsidy will be applicable up to a maximum of five acres and will be available only on seed varieties approved by Punjab Agricultural University (PAU).The area under cotton in Punjab has declined rapidly over the past few decades—from about 7 lakh hectares in the 1980s to just 1 lakh hectares in 2024. The major reasons for this decline include infestation of pests like pink bollworm and white fly, market prices below the Minimum Support Price (MSP), and irregular weather.Although due to government efforts, there was a slight increase in cotton area to 1.19 lakh hectares in 2025, but this year the target has been set at 1.26 lakh hectares.At an inter-state consultation meeting recently, PAU Vice-Chancellor Satbir Singh Gosal presented a detailed roadmap for the revival of cotton. He described timely availability of high quality seeds, promotion of Bt cotton, adequate irrigation before sowing, and balanced fertilizer use as essential to increase productivity.Despite this, farmers are still cautious. A farmer from Bathinda expressed concern over uncertain yield and frequent pest attacks despite repeated pesticide spraying.Punjab Agriculture Director Gurjit Singh Brar attributed the decline in cotton area to the shift towards paddy, better irrigation facilities, and frequent pest attacks in cotton. He highlighted timely sowing, deep ploughing, crop residue management and awareness campaigns as solutions to this problem.read more :- Cotton Market in India: Trends Up, Challenges Persist

India Cotton Market: Trend towards cotton, but challenges remainIndia's cotton market is going through many ups and downs during 2025–26. On one hand, there are signs of improvement in prices, on the other hand, structural and global challenges still remain.The domestic market remained under pressure in 2025 as the government made cotton imports duty free from September to December 31. Due to this, both imported cotton and local arrivals increased, due to which farmers could not get better prices. However, after the implementation of 11 percent import duty from January 1, 2026, there was improvement in the market. International prices also strengthened, leading to domestic prices hovering around or above the minimum support price.Recent global developments, particularly wars and rising crude oil prices, have supported the cotton market. As oil became expensive, the cost of man-made fibers like polyester and rayon increased, which increased the demand for cotton. Cotton prices increased by about 13 percent in the international market, which affected the Indian market as well.Positive signs are also being seen on the export front. Farmers are expected to get better prices from the possible increase in cotton, yarn and textile exports. For this reason, farmers may lean towards increasing cotton cultivation in the coming season. According to the estimates of the US Department of Agriculture, the area of cotton in India may increase by about 3 percent in 2026-27 and a significant increase in production is also possible.In India, cotton is cultivated at different times regionally. In North India (Punjab, Haryana, Rajasthan) sowing takes place during April–May and this region gives about 14 percent of the total production. Central India (Gujarat, Maharashtra, Madhya Pradesh) is the largest producing region of the country, whose share is about 55 percent and sowing takes place here in June-July. Sowing takes place in August–September in South India (Andhra Pradesh, Telangana, Karnataka, Tamil Nadu), where long variety fiber is produced.The picture at the state level is mixed. In Punjab, cotton area is likely to increase due to government incentives, while in Haryana and Rajasthan, area may decrease due to pests, irrigation and alternative crops. Farmers in Gujarat may lean towards better profit-paying crops like groundnut and cumin, while the area in Maharashtra and Madhya Pradesh is expected to remain stable. Cultivation may increase in South India, especially in Telangana and Andhra Pradesh due to support price.Changes in cotton production and demand are also being seen at the global level. Cotton area in the US is projected to grow by about 4 percent for 2026-27. Production is likely to increase in key states like Texas and Georgia.However, the biggest challenge facing the cotton industry is competition from man-made fibres. The use of polyester has increased rapidly in the last few decades. Whereas in 1970, about 50 percent of clothes were made from cotton, by 2024 this share has dropped to less than 20 percent. In contrast, the use of polyester has been continuously increasing and now accounts for more than half of the total textile production.In conclusion, the cotton market is currently showing signs of recovery, but long-term sustainability will require addressing challenges such as production costs, climate risks and competition from synthetic fibres.read more :- The rupee opened 54 paise lower at 93.26.