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Cotton prices surge in the global market.

Cotton prices rise on global markets after long period of declineSince the beginning of 2026, cotton prices have been on the rise again. In early January, cotton futures surged to 64.8 cents per pound, the highest level since late December, after several days of decline. However, in year-on-year terms, the price is still about 5.4% lower, and the demand for cotton remains weak.According to Trading Economics, the price increase was driven by the return of investors to the market after the New Year holidays, leading to the closure of "short positions" — meaning the repurchase of contracts on which investors had profited during the price decline. This pushed the prices up. Additional support came from oil, which rose slightly, making polyester — one of cotton’s main substitutes — more expensive, thus making natural fiber more attractive again.As of January 6, 2026, the price of cotton held steady at around 64.82 cents per pound, which is approximately $1.43 per kilogram. However, compared to January of last year, the price is still 5.4% lower.Despite the price recovery, risks for the market persist. Trading Economics notes that market participants remain concerned about weak demand, surplus stocks, and the potential impact of tariffs on U.S. cotton. The U.S. Department of Agriculture's report also heightened concerns, as net cotton export sales for the week ending December 25, 2025, totaled only 134,000 bales, which is perceived as a sign of weak demand.For Tajikistan, the dynamics of cotton prices are especially important given the expected increase in production. According to the Forecast of Key Macroeconomic Indicators of Tajikistan for 2025–2027, the cotton harvest in 2025 is estimated at 390,000 tons, with the production of cotton fiber is estimated at 139,000 tons.Additionally, Tajikistan is increasing its cotton fiber exports. Since the beginning of 2025, Iran has purchased more than 30,000 tons of Tajik cotton fiber for $45.7 million.read more :- Increase in cotton procurement, deadline extended to January 16.

Increase in cotton procurement, deadline extended to January 16.

Cotton Procurement Increases in Vadodara District, Gujarat; Slot Booking Facility Introduced for the First Time; Procurement Extended Until January 16Vadodara:  Farmers continue to flock to the cotton procurement centers in Vadodara district to sell their cotton at the support price. As a result, the total amount of cotton purchased at the three centers in Vadodara has increased compared to last year.  Due to the large number of farmers, the funds allocated for procurement have also been increased.The Cotton Corporation of India (CCI) has established three procurement centers in Vadodara district: Karjan, Dabhoi, and Samlaya. Farmers are required to register online at these centers according to the regulations.This year, the registration deadline for farmers was extended until December 31. However, considering the continued rush of farmers at all three centers and the demand to extend the procurement process, the CCI has decided to continue procurement across the state until January 16.Cotton procurement in Vadodara district has increased compared to last year. With 10 days remaining in the procurement period, the amount of cotton purchased so far has already exceeded last year's figures. Last year, a total of 1.79 lakh quintals of cotton were purchased at the three centers. This year, the figure has already surpassed 1.82 lakh quintals.Farmers' Income Increases Due to the Introduction of Slot Booking FacilityAccording to reports, previously, the CCI would set a deadline for cotton procurement, and farmers had to deliver their cotton accordingly. However, due to the large crowds, private traders were often involved in the process.This year, farmers have been given the option to choose their preferred slot for online procurement, allowing them to directly visit the centers.Cotton Cultivation Leads in Vadodara DistrictVadodara district has a total cultivated area of 3,47,137 hectares. Cotton is the most prominent crop. Last year, cotton was sown on more than 80,000 hectares of land.read more :- Rupee closed 04 paisa higher at 90.17

Assam: Meeting of textile ministers held in Guwahati, focusing on a $350 billion industry plan.

Assam: National Conference of Textile Ministers in Guwahati to shape $350 Billion Industry PlanGuwahati : A national conference of textile ministers will be held in Guwahati from January 8 to 9 on the theme "India's Textiles: Weaving Growth, Heritage and Innovation," an official said on Sunday.The two-day conference is being organized by the Ministry of Textiles, Government of India, in collaboration with the Government of Assam.The meeting aims to bring together senior officials from the Centre and states, along with central and state textile ministers, to discuss a coordinated national strategy to establish India as a global textile manufacturing hub.The discussions are in line with the national vision of creating a $350 billion textile industry and achieving $100 billion in textile exports by 2030, the official said.The inaugural session will be attended by Union Textile Minister Giriraj Singh, Assam Chief Minister Himanta Biswa Sarma, and Union Minister of State for Textiles Pabitra Margherita, among others.The conference will feature several sessions focusing on infrastructure and investment, export expansion, competitiveness, raw materials and fibers, and emerging areas such as technical textiles, research, and development. Special emphasis will also be placed on reviving traditional textiles, including handlooms and handicrafts, for modern domestic and global markets.Delegates are expected to share best practices, challenges, and policy suggestions aimed at strengthening the textile value chain across regions and districts.As part of the conference, a conclave titled "Strengthening and Empowering the Textile Sector of India's North-Eastern Region" will be held on the first day.The conclave will focus on silk, handloom, and bamboo-based textiles, promoting women-led enterprises, and branding "Textiles from the North-East," aiming to highlight the region's unique textile strengths and integrate them into national and global value chains.read more :-Maharashtra: CCI purchased 7.24 lakh quintals of cotton.

Maharashtra: CCI purchased 7.24 lakh quintals of cotton.

Maharashtra: CCI Cotton Procurement: CCI purchases 7.24 lakh quintals of cottonParbhani : This year, cotton prices are low in the open market. Because of this, farmers in Parbhani and Hingoli districts are selling their cotton at the Cotton Corporation of India (CCI) guaranteed price centers. As of Friday (December 2nd), 7,24,996 quintals of cotton have been purchased at 14 CCI centers in Parbhani and Hingoli districts. Private traders have purchased 2,46,814 quintals. Together, CCI and private traders have purchased a total of 9,71,810 quintals of cotton in these two districts.85,520 farmers from both districts have registered through the Cotton Farmer Mobile App to sell their cotton at guaranteed prices at CCI procurement centers. Of these, 46,881 farmers have been verified and given permission to bring their cotton for sale.8.84 lakh quintals of cotton purchased in Parbhani districtIn Parbhani district, CCI and private traders together purchased a total of 8,84,507 quintals of cotton. 72,166 farmers under 10 Agricultural Produce Market Committees in Parbhani, Bori, Jintur, Selu, Pathri, Sonpeth, Gangakhed, Palam, and Tadkalas have registered to sell cotton at CCI centers, of which 41,539 farmers have been verified and given permission to sell their cotton at the centers.6,42,674 quintals of cotton were purchased at 33 ginning factories in the district, with prices ranging from Rs. 7710 to Rs. 8060 per quintal. In Parbhani district, 241,833 quintals of cotton were purchased from private traders at a rate of Rs 6,700 to Rs 7,440 per quintal across 26 ginning factories under 10 Agricultural Produce Market Committees.87,000 quintals purchased in Hingoli districtIn Hingoli district, a total of 87,303 quintals of cotton were purchased by the Cotton Corporation of India (CCI) and the private sector. 13,354 farmers registered to sell cotton at CCI centers under four Agricultural Produce Market Committees in Hingoli, Akhada Balapur, Vasmat, and Jalalpur. Of these, 5,342 farmers were verified and given permission to bring their cotton to the centers.Under this market committee, 82,322 quintals of cotton were purchased at five ginning factories at a price ranging from Rs 7,712 to Rs 8,060 per quintal. In the private sector, 4,981 quintals of cotton were purchased at three ginning factories under two market committees in the district, at a price ranging from Rs 7,200 to Rs 7,400 per quintal, according to sources from the State Cooperative Cotton Producers Marketing Federation.read more :- Cotton Output Falls Sharply, Rural Employment Pressure Mounts In India.

Cotton Output Falls Sharply, Rural Employment Pressure Mounts In India.

India’s Cotton Output Drops, Rural Jobs at RiskIndia’s cotton production is expected to contract by 1.7 per cent in the cotton year 2026 (October 2025–September 2026), taking output to 29.2 million bales, the lowest level in a decade, according to a report by rating agency  Icra. The reduction is driven by declining acreage, water shortages, uneven monsoons, and farmers shifting to more profitable crops.The report notes that while yields per hectare are rising modestly, up 1.8 per cent year-on-year, this gain is insufficient to offset shrinking cultivation areas, which have declined nearly 20 per cent from peak levels in 2021. The contraction in output is likely to affect rural employment, as cotton farming continues to provide significant seasonal work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and local wage opportunities.Domestic cotton consumption is expected to remain flat in CYi2026, despite subdued output. Analysts cited in the  Icra report highlighted that U.S. tariffs on Indian apparel exports are likely to dampen downstream demand, further reducing incentives for higher cotton production.In response to the domestic shortfall, India has increased its dependence on imports, which rose 85 per cent year-on-year in the first five months of FY2026 to 1.5 million bales of 170 kg each. The United States remains the largest supplier, accounting for 22 per cent of imports. Icra emphasised that while import duty exemptions provided between 19 August and 31 December 2025, helped maintain supply, they also contributed to soft cotton prices domestically.Cotton yarn prices mirrored the softness in raw cotton markets. Domestic cotton fibre prices fell 3 per cent month-on-month in November 2025, while average cotton yarn prices dropped 4 per cent, reducing contribution margins from Rs. 103 per kg in the first half of FY2026 to Rs 96 per kg by November 2025. Icra expects margins to stabilise at Rs 98–100 per kg in FY2026, due to moderation in realisations in the second half.The report surveyed 13 cotton spinning companies, representing 25–30 per cent of the industry’s revenue. These companies are projected to see revenue decline by 4–6 per cent in FY2026, with margin contractions of 50–100 basis points, largely due to weaker second-half performance.The slowdown in cotton production and yarn demand has broader implications for rural India, where cotton cultivation is closely tied to local livelihoods. Lower output may reduce casual and seasonal employment, pressuring rural wages and increasing reliance on government employment schemes such as MGNREGS. The report signals a need for policy attention to sustain both farmer incomes and rural employment amid shifting crop patterns and global trade uncertainties.READ MORE :-“State-wise CCI cotton sales in 2024-25”

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