Rising Prices and El Niño Forecast Likely to Lift India’s Cotton Acreage in 2026India’s cotton acreage is expected to expand significantly in the 2026 kharif season, driven by a recovery in domestic prices, improving global demand, and the likelihood of an El Niño-induced weak monsoon. Industry stakeholders estimate that the area under cotton cultivation could rise by 10–20%, reversing last year’s decline when farmers shifted to alternative crops like pulses and maize.Sowing preparations have already begun in the northern states of Punjab, Haryana, and Rajasthan, with planting expected to commence shortly. According to industry experts, better price realization—well above the Minimum Support Price (MSP) of ₹8,100 per quintal—has encouraged farmers. If the MSP increases further to around ₹8,600, cotton could become even more attractive. Additionally, cotton’s relatively low water requirement makes it a preferred choice during years of deficient rainfall, a likely scenario under El Niño conditions.Farmers in Maharashtra have also reported improved yields after adopting HTBT seeds, with production projected to rise sharply. This combination of higher yields and better prices is expected to further boost farmer confidence.Despite the positive outlook, overall cotton output in 2025–26 declined slightly, reflecting reduced acreage. However, 2026 may mark a turning point. Rising crude oil prices are increasing the cost of synthetic fibres, potentially restoring cotton’s competitiveness in the textile sector. This shift could benefit millions of cotton farmers and revive the broader cotton value chain.Globally, the trend contrasts with India’s outlook. Major producers such as the US and Australia are expected to reduce cotton acreage due to rising cultivation costs and lower profitability. Estimates suggest a modest decline in US acreage and reduced output in Australia due to water constraints.While favourable prices and weather dynamics support expansion, experts stress that policy reforms and technological advancements will be crucial to sustaining long-term growth in India’s cotton sector.read more :- The Rupee fell by 1.36 paise to close at 94.83 per dollar.
On Monday, the Indian Rupee fell by 1.36 paise to close at 94.83 per dollar, while it had opened at 93.47 in the morning.At market close, the Sensex dropped 1,635.67 points, or 2.22 percent, to settle at 71,947.55, and the Nifty fell 488.20 points, or 2.14 percent, to close at 22,331.40. Gains were recorded in approximately 837 stocks, 3,419 stocks declined, and 138 stocks remained unchanged.READ MORE :- Shrimp and Textile Exports Hit by Sluggish US Demand and Policy Uncertainty
Tariff cuts fail to revive US demand for Indian export; Policy uncertainty, Section 301 probe delay recovery in shrimp, textilesPune | Kolkata: Demand from the United States for Indian exports remains subdued despite recent tariff reductions, as policy uncertainty and geopolitical tensions continue to dampen consumer sentiment, according to industry executives.Exports of key sectors such as shrimp and textiles have yet to recover, weighed down by excess inventories accumulated during the earlier 50% tariff regime and the ongoing Section 301 investigations. Shrimp exports to the US declined 15% year-on-year during April–December, while textile shipments dropped 16% over the same period.Following the US Supreme Court’s rejection of former President Donald Trump’s import tariffs, the United States Trade Representative (USTR) initiated Section 301 probes to assess whether countries are maintaining “structural excess capacity” through subsidies, suppressed wages, or other trade-distorting measures.Industry leaders caution that these investigations could slow the recovery of sectors heavily dependent on US markets.The textile industry, while encouraged by the revised tariff structure, remains wary of the probe’s potential impact. Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industries (CITI), said the sector is closely monitoring developments, given their implications for market access in the US.She added that recent geopolitical tensions, particularly in West Asia, along with evolving US trade policies, have contributed to cautious—if not bearish—market sentiment. This may limit the pace of recovery and reduce the full benefits of tariff rationalisation.Shrimp exporters are already feeling the strain, with farm-gate prices falling 10–15% over the past three weeks. Exporters note that US buyers, especially those in regions like Boston who typically prefer long-term contracts, are hesitant to commit.According to Pawan Kumar G of the All India Seafood Exporters’ Association, many US buyers are still holding high-cost inventories purchased when tariffs were at 50%.In response to concerns about excess capacity, India’s commerce ministry has gathered detailed data from affected industries—including installed capacity, global value chain integration, policy support, and employment—to demonstrate that the domestic textile sector does not contribute to global market distortions.read more :- Textile crisis: 85% weavers in favor of production cut
85% weavers favour production cut amid textile crisis: SurveySurat: An online survey by the Federation of Gujarat Weavers Welfare Association (FOGWWA) has revealed deep concern among textile weaving unit owners, with 85% of respondents favouring a cut in production amid the ongoing industry crisis.The survey received 2,800 responses from weaving unit owners, association leaders and cluster representatives. It aimed to gauge industry sentiment and identify measures needed to address the current downturn.Participants were asked whether a meeting should be convened to discuss the crisis, and whether production should be reduced — with options ranging from two to 30 days. They were also asked to assess the impact on output and suggest corrective measures.According to the findings, the key factors driving the crisis are a sharp rise in yarn prices, weak demand and labour-related issues."The major reasons are higher yarn costs, low demand for textiles and worker-related problems. Workers are also complaining about cooking gas shortages and may return to their native places if the situation does not improve," said Ashok Jirawala, president of FOGWWA.Atul Patel, a weaver, said the industry is facing a double blow."Yarn prices have increased by nearly 50%, while demand for fabric remains low. We have no option but to cut production," he said.The survey indicates that a large section of the weaving industry sees production cuts as an immediate response to rising costs and subdued demand.Meeting of 35 weaving associations todayA meeting of 35 textile weaving associations has been convened in Varachha on Saturday to discuss the ongoing crisis in the sector. Representatives from across South Gujarat are expected to attend, with the primary agenda being to chalk out a strategy for reducing production amid weak demand. Industry representatives believe a coordinated production cut could help limit losses. "With demand remaining low, a collective decision to reduce or halt production will help stabilise prices and prevent further financial strain," said Ashok Jirawala, president of FOGWWA.read more:- The rupee opened 126 paise higher at 93.47.
The rupee opened 1.26 paise higher at 93.47/USD.The Indian rupee opened 1.26 paise higher at 93.47 per dollar on Monday, whereas it had closed at 94.73 on Friday.READ MORE :- State-wise CCI Cotton Sales (2025–26)
State-wise CCI Cotton Sales Details – 2025-26 SeasonThe Cotton Corporation of India (CCI) raised its cotton prices by upto ₹200-₹500 per candy during this week . To date, CCI has sold approximately 38,58,000 cotton bales for the 2025-26 season. Sales are highly concentrated in a few major cotton-producing states, Maharashtra and Gujarat emerging as the leading contributors.
CCI Hikes Cotton Prices by ₹200–₹500 per Candy; Weekly Auctions Record Strong Sales of 8.93 Lakh BalesThe Cotton Corporation of India (CCI) increased its cotton prices by ₹200 to ₹500 per candy during the week of March 23 to March 27, 2026. Despite the price hike, the cotton auctions witnessed strong participation from both mills and traders, leading to robust sales of approximately 8,93,600 bales from the 2025–26 season.Day-wise Auction PerformanceMarch 23, 2026 (Monday):The week opened on a strong note with total sales of 1,53,700 bales. Mills purchased 51,700 bales, while traders led the buying with 1,02,000 bales.March 24, 2026 (Tuesday):Sales slightly declined to 63,300 bales. Mills bought 29,400 bales and traders acquired 33,900 bales.March 25, 2026 (Wednesday):Mid-week activity improved, with total sales reaching 1,69,600 bales. Mills purchased 52,500 bales, while traders accounted for 1,17,100 bales.March 26, 2026 (Thursday):CCI sold 1,66,900 bales during the session. Mills bought 57,200 bales, and traders purchased 1,09,700 bales, indicating sustained demand.March 27, 2026 (Friday):The week ended on a strong high, recording the highest single-day sales of 3,40,100 bales. Mills purchased 1,36,900 bales, while traders dominated with 2,03,200 bales.Cumulative Sales Update2025–26 season sales: 38,58,000 bales2024–25 season sales: 98,85,100 bales
Cotton Prices Firm Up as Demand Rises Amid Weak Rupee and Strong Global TrendsCotton prices in India have continued to strengthen, supported by rising demand from spinning mills and trade participants. Domestic prices are also tracking the upward global trend, while the weakening of the rupee against the US dollar is making imports costlier and supporting local price gains.On Friday, the Cotton Corporation of India (CCI), the country’s largest cotton stockholder, increased prices of the natural fibre by ₹300 per candy (356 kg). With this revision, CCI has raised prices by a total of around ₹1,900 per candy since the beginning of the month, reflecting sustained upward momentum in the market.A senior official from Cotton Corporation of India noted that the price revision is aligned with global market trends, adding that demand for both cotton and yarn remains strong. The official also highlighted that around 39 lakh bales (170 kg each) have already been sold in March out of a total procurement of 1.05 crore bales, indicating robust market activity.ICE Futures Rally Over 14%Cotton futures on the Intercontinental Exchange have risen by more than 14% since early March. Prices for May 2026 delivery are trading above 69 cents per pound, while July contracts are hovering above 71 cents.According to industry experts, the combined effect of a weakening rupee and rising global futures prices is expected to keep upward pressure on high-quality cotton prices in the coming days.Cotton Association of India former president Atul Ganatra said that the current trend suggests further price firmness ahead if currency depreciation and global futures continue to rise.Stronger Export Demand from AsiaMarket participants also noted improving demand for Indian cotton yarn from countries such as China, Bangladesh, and Vietnam, as global supply chains remain disrupted due to ongoing geopolitical tensions.Traders said that a weaker rupee is also making Indian cotton more attractive to international buyers, further supporting demand from both mills and multinational trading firms.read more:- Cotton yarn prices increased in South India, demand remained weak
Cotton yarn prices in South India continued to edge higher even as overall demand remained subdued.Industry experts noted that mills have been increasing prices, supported by stronger returns from export markets. However, domestic demand from end-use industries and stockists stayed muted during the final week of the 2025–26 fiscal year.According to traders, buyers with immediate requirements are paying higher rates due to limited options in the market. Despite the weak demand scenario, mills have been able to push prices up modestly.Meanwhile, cotton prices in Gujarat remained largely steady, even after the Cotton Corporation of India (CCI) announced a price increase.read more :- The rupee closed 56 paise lower at 94.73 against the dollar.
On Friday, the Indian rupee closed 56 paise lower at 94.73 against the dollar, having opened at 94.17 in the morning.At market close, the Sensex fell 1,690.23 points, or 2.25 percent, to settle at 73,583.22, while the Nifty dropped 486.85 points, or 2.09 percent, to close at 22,819.60. Approximately 765 shares recorded gains, 3,420 shares declined, and 123 shares remained unchanged.READ MORE :- HTBT Cotton: New movement in the market
HTBT Cotton: 'HTBT' has created a stir in the cotton marketFarmers' Income: Like last season, this year too HTBT (Herbicide Tolerant BT Cotton) cotton was planted on a large scale in Vidarbha and Khandesh. Due to farmers getting satisfactory income compared to the cost of production, the market is indicating the possibility of increase in the inclination of farmers towards the cultivation of this seed in this season also. However, the increasing use of HTBT seeds is becoming a matter of concern for traditional cotton seed producing companies in the state.According to cotton experts, due to lack of sales in the last season, huge returns have been seen in BT cotton seeds of many renowned companies. Barring a few companies, most of the companies were hit financially. Not only the manufacturing companies but also the seed sellers had to bear the brunt of this situation. Due to non-sale, stock got stuck and financial transactions were affected.In this background, the vendors also tried to draw the attention of the local administration against illegal sale of HTBT in the last season. But in reality the systems have not been able to achieve the expected success in controlling the distribution of this seed. The picture shows that the administration is helpless due to the collusion of the supply chain in every village.Registration from next weekMeanwhile, booking (registration) of seed companies for this season will start from next week. Currently more than 50 seed supply companies are operating in the market. There is good demand for cotton varieties of seven to eight companies. But looking at the increasing influence of HTBT in the last two years, there is a fear that these major companies may also be hit this year.It is well known that HTBT seeds are supplied in large quantities from outside states, especially Gujarat. Its network has been strengthened at the local level and it is likely that the supply of this seed will start soon for the new season also. Sources said that this has created a big challenge for the official seed market.Various farmer organizations have responded that HT (Herbicide Tolerant) technology is genetic modification of seeds. This allows the use of herbicides in cotton or other crops. There is no damage to the root crop. Thanks to this technology, weed control can be done by saving the labor cost of farmers. There are restrictions on its use in India. But we believe that whatever secret cultivation of HTBT cotton is being done today is part of a citizen movement against government policies.Administration desperateIt appears that the state machinery is completely failing to control the illegal supply of HTBT seeds in the state. Even though this seed is being planted in the villages, the concerned departments are not able to ascertain it concretely.The government had initially banned these seeds in the country for 10 years. It's been quite some time now. The government should address the issues pointed out by the Supreme Court in this regard. Also, there is no problem in removing the existing ban on seeds and making this technology available to farmers.read more :- Cotton imports increased, purchases intensified due to fall in prices
India’s Cotton Imports Surge in 2025 as Lower Global Prices Drive Buying Spree | India’s cotton imports recorded a sharp increase in 2025, with volumes rising by 130% and import value climbing 92.5% year-on-year, reflecting a significant shift in sourcing dynamics within the textile sector.The surge was primarily driven by a decline in global cotton prices, which made overseas procurement more attractive for domestic buyers. Average import prices fell notably during the year, encouraging higher purchasing by textile manufacturers seeking cost efficiencies and improved raw material quality.India’s total cotton import volumes rose substantially compared to the previous year, surpassing earlier benchmarks and signalling a strong demand push from the domestic textile industry.The shift in sourcing patterns was also evident in supplier rankings, with Brazil emerging as the leading exporter of cotton to India, overtaking traditional supplier Australia. This change underscores a broader transition towards a volume-led import strategy aligned with global price competitiveness.The increase in imports comes amid evolving market conditions in India’s textile sector, where manufacturers are balancing cost pressures, supply constraints and quality requirements. Lower international prices have made imported cotton a viable alternative, even as India remains one of the world’s largest producers of the fibre.The trend highlights the growing integration of India’s textile value chain with global commodity markets, particularly during periods of price volatility and domestic supply fluctuations.read more :- The rupee opened 20 paise lower at 94.17.
The rupee opened 20 paise lower at 94.17 per USD.The Indian rupee opened 20 paise lower on Friday at 94.17 per dollar, whereas it had closed at 93.97 on Wednesday.READ MORE :- PAU: Cotton area reduced, revival plan for 2026
PAU Calls for Urgent Revival Plan as Cotton Area Declines; Targets Set for Kharif 2026Concerned over the continuous decline in cotton cultivation in northern states, experts and policymakers have called for immediate corrective measures to revive the crop and restore farmer interest.The issue was discussed at a meeting of the Interstate Consultative and Monitoring Committee on Cotton held at Kheti Bhawan in Bathinda, chaired by Punjab Agricultural University (PAU) Vice-Chancellor Satbir Singh Gosal.Sharp Decline in Cotton AcreageGosal highlighted that cotton cultivation area in the region has fallen drastically from about 7 lakh hectares in the 1980s to nearly 1 lakh hectare in 2024. However, due to recent efforts by the state government and agricultural institutions, the area has slightly improved to 1.19 lakh hectares, with a target of 1.26 lakh hectares set for the upcoming season.Key Challenges IdentifiedExperts attributed the decline to multiple factors, including:Increasing pest attacks such as pink bollworm and whiteflyCotton leaf curl virus infestationAdverse climatic and weather conditionsBiotic and abiotic stress on cropsThese challenges have reduced productivity and discouraged farmers from continuing cotton cultivation.Kharif 2026 Revival StrategyFor the Kharif 2026 season, PAU outlined a roadmap focusing on:Timely availability of high-quality, recommended seedsSubsidies on Bt cotton to encourage adoptionAssured canal irrigation before sowingPromotion of balanced fertilizer use to improve yieldGosal stressed that coordinated efforts among all stakeholders are essential to manage pest pressure and restore profitability in cotton farming.read more :- Cotton becomes expensive in India due to Iran-Israel tension
Iran-Israel tensions hit cotton supply in India; prices surgeCHENNAI: Escalating tensions between Iran and Israel have begun to impact India’s cotton supply, pushing up prices and putting pressure on spinning mills and textile manufacturers, said a report by Daily Thanthi. Despite the Centre rolling out special schemes to boost cotton production, output has been declining steadily.For the current cotton year (October 2025 to September 2026), production is expected to fall to around 29 million bales (1 bale = 170 kg), lower than the past three years.To bridge the gap, India relies on imports from countries such as the United States, Brazil and South Africa.However, shipments ordered in January have been delayed due to disruptions linked to the ongoing conflict.With domestic availability already tight, the delay in imports has further squeezed supply, triggering a sharp rise in prices.The cost of a cotton candy (356 kg) has increased by Rs 1,000 to Rs 1,500 within a week.Industry sources warn that the spike has pushed spinning mills and textile units into financial strain.If the trend continues, yarn prices may also rise, potentially impacting the broader textile sector.read more :- CCI closed, cotton purchase shifted to private market
Resilient export growth continues, India crosses $714 billion in FY26 (Apr–Jan)India’s total exports of goods and services reached USD 714.73 billion during April–January of FY 2025–26, registering a 5.26% increase compared to USD 679.02 billion in the same period last year. The growth highlights the resilience of India’s trade sector despite global economic uncertainty, supply chain disruptions, and volatile commodity prices.Over the past few years, India’s exports have shown a steady upward trend. From USD 497.90 billion in 2020–21, exports rose to USD 828.25 billion in 2024–25, reflecting a compound annual growth rate (CAGR) of 6.9%. This sustained expansion underscores India’s strengthening position in global trade.The government continues to support export growth through policy measures, financial incentives, and digital infrastructure. A key focus remains on empowering MSMEs by improving access to markets, finance, and logistics support.The Foreign Trade Policy (FTP) 2023 emphasizes trade facilitation, export promotion, and digital integration. Schemes such as RoDTEP help offset embedded taxes, ensuring Indian products remain competitive in global markets.Additionally, the Export Promotion Mission (EPM), with an outlay of Rs 25,060 crore for FY 2025–26 to FY 2030–31, aims to strengthen trade finance, logistics, and quality standards. A special ‘RELIEF’ scheme under EPM, implemented via ECGC, addresses risks arising from geopolitical disruptions.India is also enhancing trade infrastructure and leveraging digital platforms such as Trade e-Connect and the Certificate of Origin system to streamline processes. The country currently has 19 Free Trade Agreements (FTAs) in place and is negotiating new ones with partners including the European Union (EU) and the United Kingdom (UK).read more :- Rupee fell 02 paise to close at 93.97 per dollar
| title | Created At | Action |
|---|---|---|
| Cotton acreage is likely to increase in 2026 due to inflation and El Niño. | 31-03-2026 10:59:12 | view |
| The Rupee fell by 1.36 paise to close at 94.83 per dollar. | 30-03-2026 15:55:32 | view |
| Shrimp and Textile Exports Hit by Sluggish US Demand and Policy Uncertainty | 30-03-2026 11:40:09 | view |
| Textile crisis: 85% weavers in favor of production cut | 30-03-2026 11:23:55 | view |
| The rupee opened 1.26 paise higher at 93.47. | 30-03-2026 09:29:52 | view |
| State-wise CCI Cotton Sales (2025–26) | 28-03-2026 14:51:53 | view |
| CCI Cotton Auctions Surge Despite Price Hike; Weekly Sales Near 9 Lakh Bales | 28-03-2026 11:58:42 | view |
| Cotton Prices Rise on Strong Demand, Weak Rupee and Global Market Rally | 28-03-2026 11:34:43 | view |
| Cotton yarn prices increased in South India, demand remained weak | 28-03-2026 11:17:20 | view |
| The rupee closed 56 paise lower at 94.73 against the dollar. | 27-03-2026 15:45:26 | view |
| HTBT Cotton: New movement in the market | 27-03-2026 12:16:00 | view |
| Cotton imports increased, purchases intensified due to fall in prices | 27-03-2026 12:01:19 | view |
| The rupee opened 20 paise lower at 94.17. | 27-03-2026 09:25:35 | view |
| PAU Plans Revival Push for Cotton as Acreage Falls Sharply; Targets Set for Kharif 2026 | 26-03-2026 11:47:05 | view |
| Cotton becomes expensive in India due to Iran-Israel tension | 25-03-2026 17:36:32 | view |
| India’s exports rise 5.26% to $714 billion in FY26 (Apr–Jan), showing strong resilience | 25-03-2026 17:10:10 | view |
