Recent News

Good News for the World Economy: Cotton Markets Should Level Off in 2025NEW YORK – Cotton may not always be a leading indicator for the global economy, but a new report from Cotton Incorporated suggests there is a relationship between the two and both are headed in the right direction for 2025.In its recently released special study, “Cotton as a Potential Bellwether for Global Economies: Why International Cotton Markets Matter,” a sister organization of Supima reports that “the overall economic outlook (in the U.S.) is favorable, and the cotton pricing outlook is moving in a positive direction.”Cotton Incorporated is forecasting more stability in cotton pricing for the new year, stating that “pricing bottoms should be fairly close in terms of fiber prices. The outlook suggests a more stable macroeconomic environment, following continued volatility since the start of the trade dispute and the spread of COVID-19.” Cotton Incorporated has provided estimates of how each of the major cotton-producing countries around the world see their crops for 2025. The US Department of Agriculture expects to see an increase in global production (+3.1.2 million bales to 116.2 million) and world mill-use (+1.4 million to 115.2 million) in 2024/25. "The biggest year-over-year increase is expected to come from the US, which saw an increase of about 2.5 million bales more than last year. But this increase only seems so large because in 2023, the US market sees its smallest crop since the 1980s."Weather has been the main culprit for the smaller crops, with hot and dry conditions in West Texas, the country's largest producing region.China remains the world's largest cotton producer, and its production last year rose by 300,000 bales to 27.8 million, the report said. China also has reserve stocks brought in last year, which will keep the country's market well supplied in the 2025 season. This means that China is reducing its imports by 500,000 bales to 9.5 million.India is the world's second-largest cotton producer and the report said the country has also had weather-related issues in the last few months and its crop numbers are falling."However, for the last several years India has guaranteed minimum support prices (MSPs) to producers. When prices were high and above the guaranteed price, this was not a problem. But now that prices are low, the Indian government will need to intervene, as MSPs are enforced by the government. This also means that the government will take possession of the cotton and keep it out of the market. But unlike China, where cotton can be stored for years, storage in India is usually only for a period of a few months. Cotton may come back to the market, but may be sold at a loss." Cotton production in Pakistan, the fourth-largest producer, fell by 300,000 bales to 5.7 million, but its spot prices rose from $0.76 to $0.81 a pound. “Pakistan has had problems with its cotton seeds. They don’t have the best controls, so they’ve lost that security over time. They’ve also had problems with flooding. And overall Pakistan’s financial situation is not great. Also, the weather has been so hot that it’s been about 120 degrees at times this year. So, they have challenges on a number of fronts.” The wild card for 2025 could be Brazil, which grew a record crop last year and has the advantage of planting two crops a year because of its tropical climate.The U.S. cotton crop for 2025 will be planted in April and more accurate forecasts are likely at that time. But cotton should be more stable in the coming year based on the most recent forecast models.read more :- Cotton cultivation in Punjab, Haryana and Rajasthan fell by 31%, yield expected to fall by 38%

Punjab, Haryana, and Rajasthan had a 31% decline in cotton cultivation, with a 38% decline in yield anticipated.Bathinda : Cotton trade organization, Indian Cotton Association Limited (ICAL) reported that the arrival of raw cotton in the grain markets of Punjab, Haryana and Rajasthan in the first four months of the 2024-25 cotton marketing season has almost halved compared to last year. From September 1 to December 31, 2024, the total arrival of cotton in these three states was 16,92,796 bales, which is less than 32,61,891 bales (one bale is equal to 170 kg) during the same period of 2023-24.The total production in the three states in the current season is estimated to be 30,79,600 bales, while the entire 2023-24 marketing season will produce 49,96,438 bales. This shows an expected reduction in yield by about 38%. The reason behind this decline is the reduction of about 31% in the crop acreage in these states as compared to last year. The reduction in acreage is due to continuous pest attacks on the crop. The biggest reduction has been recorded in Punjab, as the area under cultivation has come down to below 1 lakh hectare. Out of the total 16,92,796 lakh bales in the three states, 78,843 bales arrived in Punjab from September to the end of December, as against 2,34,765 bales in the four months during the previous season. Haryana received 4,24,803 bales during this period, as against 9,62,660 bales last year. Rajasthan received 11,89,150 bales during this period, as against 20,64,466 bales during the same period last year.Production in Punjab is estimated at around 50% of last year, with 1,96,500 bales expected as against 3,93,514 bales recorded in the previous season. Haryana is expected to produce 9,26,600 bales as against 15,38,129 bales during the previous season. Rajasthan is expected to produce 19,56,500 bales in the current season as against 30,64,795 bales in the previous season 2023-24. Cotton crop acreage in Punjab dropped below 1 lakh hectare to 99,700 hectares as against around 2 lakh hectares in 2023-24. According to data received from the Cotton Corporation of India (CCI), the crop area in Haryana has come down from 5.78 lakh hectares to 4.76 lakh hectares in 2024-25, while in Rajasthan, the crop area has come down from 10.04 lakh hectares in 2023-24 to 6.62 lakh hectares in 2024-25. The cotton crop area in these three states has come down from 17.96 lakh hectares in 2023-24 to 12.38 lakh hectares in the current season.An ICAL official said that the acreage in the three states has come down by 31 per cent compared to last year, while the production is estimated to fall by 38 per cent.State | Area | Estimated ProductionPunjab | 99,700 hectares | 1.96 lakh bales 9.26 lakh balesRajasthan | 6.62 LHA | 19.56 lakh balesTotal | 12.38 lakh | 30.79 lakh balesread more :- Rupee falls 3 paise to 85.88 against US dollar in early trade

In early trading, the rupee drops 3 paise to 85.88 versus the US dollar.This comes after the rupee recovered slightly from its record low and settled with a gain of 5 paise at 85.85 against the US dollar on Thursday amid firm American currency and elevated level of crude oil prices.read more :- Indian rupee ended flat at 85.85 per dollar on Thursday versus previous close of 85.85.

Thursday's closing price of the Indian rupee was 85.85 per dollar, unchanged from the previous close of 85.85.At close, the Sensex was down 528.28 points or 0.68 percent at 77,620.21, and the Nifty was down 162.45 points or 0.69 percent at 23,526.50. About 1175 shares advanced, 2610 shares declined, and 109 shares unchanged.read more :- Rupee falls 7 paisa to 85.92 against US dollar in early trade

In early trading, the rupee drops 7 paisa to 85.92 against the US dollar.The rupee slipped 7 paisa to its record low of 85.92 against the US dollar in early trade on Thursday, the third straight session of downfall, weighed down by a stronger American currency and higher crude oil prices.read more :- Indian rupee ended 13 paise lower at 85.85 per dollar on Wednesday against Tuesday's close of 85.72.

The Indian rupee closed at 85.85 per dollar on Wednesday, down 13 paise from Tuesday's close of 85.72.At close, the Sensex was down 50.62 points or 0.06 percent at 78,148.49, and the Nifty was down 18.95 points or 0.08 percent at 23,688.95. About 1336 shares advanced, 2466 shares declined, and 96 shares unchanged.read more :- CCI has also reduced the rates for cotton growers.

The rates for cotton growers have also been lowered by CCI.Although cotton is being procured at guaranteed rates through the Cotton Corporation of India (CCI) in the state, farmers are still facing difficulties as the rates are given according to the moisture content. After three months of the cotton season, the price of cotton in the market is not as per the expectations of the farmers. At the same time, CCI will reduce the rate and it will affect the market.This year the guaranteed price of cotton is Rs 7,121 per quintal for medium yarn and Rs 7,521 per quintal for long yarn. On Tuesday, 95 quintals of cotton arrived at Amravati Krishi Upaj Bazar Samiti. Cotton got a minimum price of Rs 7,250 and a maximum of Rs 7,550 i.e. an average of Rs 7,400 per quintal.CCI has cut the guaranteed price of cotton by Rs 10. Long yarn cotton is currently available at CCI centers for Rs 7,421. After the collapse of the Cotton Marketing Federation, cotton is now being purchased through CCI. Farmers initially preferred 'CCI' over the private market because cotton was purchased at Hamidara. 'CCI' gave a guarantee for the first picking of cotton. But now these rates have been reduced by a hundred rupees. At present, second picking cotton is coming in the market. The reason given is that the quantity of cotton in this cotton is less than that of the first picking.Since an average of 38 kg of cotton comes out of one quintal of cotton and the price of cotton in the market is high, CCI has given a guaranteed price of Rs 7,512 for long thread cotton and Rs 7,121 for medium thread cotton in the first consignment. Since 34 to 35 kg of cotton comes out of one quintal of cotton in the second picking, the price has been reduced by Rs 20. Therefore, farmers are currently getting a rate of Rs 7,421 per quintal at the CCI center. As soon as CCI reduced the rates, farmers started turning towards the private market. Currently, purchases have started in the private market at guaranteed rates. But, if the arrivals increase, then the rates are likely to decrease. read more :- Cotton procurement at MSP up at 63 lakh bales till early January

Up to 63 lakh bales of cotton will be purchased at MSP through early January.CCI procured 46% of market arrivals in 2024-25 season; prices remain below MSP levelsThe State-run Cotton Corporation of India (CCI) has procured about 46 per cent of the total market arrivals of the fibre crop in the 2024-25 marketing season till now. As per the latest data, CCI has procured over 63 lakh bales of kapas (raw cotton), which is close to half of the estimated market arrivals of around 136 lakh bales (170 kg each).According to data from the trade body Cotton Association of India (CAI), the market arrivals as of Tuesday reached nearly 136 lakh bales.Regional procurementAccording to Lalit Kumar Gupta, Chairman and Managing director of CCI, about 32 lakh bales have been procured in Telangana and 16 lakh bales in Maharashtra so far. In Gujarat, 5 lakh bales have been procured, while in Andhra and Karnataka, the procurement was at 3 lakh bales each.In Madhya Pradesh, about 2.25 lakh bales have been procured, while in Odisha the cotton purchases stood at 1.25 lakh bales. In Rajasthan, 0.5 lakh bales have been procured, 0.30 lakh bales in Haryana and 0.01 lakh bales in Punjab.CCI’s purchases have been aggressive over the past few weeks. Till mid-December, CCI purchased 31 lakh bales.Pricing concernsDespite the aggressive purchases by CCI, the market prices of raw cotton remain below the minimum support price levels. The kapas prices are in the range of ₹7,100-₹7,200 per quintal in various markets of key producing regions. The Centre had set the MSP of ₹7,121 per quintal for the medium staple and ₹7,521 per quintal for the longer variety for the 2024-25 marketing season.“Prices of pressed cotton have firmed up by about ₹1,000-1,250 per candy (356 kg) in the past one week. Cotton prices are ruling steady and firm in the range of ₹53,500-54,500 per candy,” said Ramanuj Das Boob, a sourcing agent in Raichur. Also, the firming trend in cottonseed prices is providing support to the cotton prices.Cottonseed prices have increased by about 10-15 per cent over the past few days to ₹3,400-3,500 range, Das Boob said. This is mainly due to tight supplies.Das Boob said mills buying of cotton is still slow. “There is no bulk buying from mills,” he said.Daily arrivals top 2 lakh balesAs per CAI data, daily cotton arrivals are exceeding 2 lakh bales, with the majority coming from Maharashtra and Telangana. Arrivals will likely pick up in Maharashtra, where the marketing season was delayed due to a late harvest and the recent assembly elections, sources said.In Telangana, a total of over 34.45 lakh bales have arrived so far, of which CCI has procured over 32 lakh bales. In Maharashtra, of the 26.91 lakh bales that have arrived in the market, CCI has procured 16 lakh bales.Close to half of the estimated crop size of around 300 lakh bales have arrived in the market till the first week of January. The Committee on Cotton Production and Consumption has estimated the 2024-25 crop size to be lower at 299.26 lakh bales of 170 kg each, while the Cotton Association of India has pegged the crop size at 302.25 lakh bales, primarily due to a drop in acreage this kharif season.read more :- Rupee hits record low of 85.83 against US dollar

The rupee falls to a historic low of 85.83 versus the US dollar.The rupee fell 11 paise to a record low of 85.83 against the US dollar in early trade on Wednesday. The rupee fell 11 paise to a record low of 85.83 against the US dollar in early trade on Wednesday due to strength in the US currency and rising crude oil prices. However, the government has lowered the country's economic growth forecast.read more :- Indian rupee ended 11 paise higher at 85.72 per dollar on Tuesday versus previous close of 85.83.

The Indian rupee closed Tuesday at 85.72 per dollar, 11 paise higher than its previous closing of 85.83.At close, the Sensex was up 234.12 points or 0.30 percent at 78,199.11, and the Nifty was up 91.85 points or 0.39 percent at 23,707.90. About 2527 shares advanced, 1286 shares declined, and 103 shares unchanged.read more :- India Budget 2025: CITI advocates for low import duties on textiles

India Budget 2025: CITI Supports Textile Import Tax CutsAhead of India’s Budget 2025, the textile industry has raised alarms with policymakers about losing its global market share due to severe impacts on cost competitiveness. The Confederation of Textile Industry of India (CITI) has stated in its memorandum to the government before the budget that the prices of raw materials are significantly higher than the global market. Polyester staple fibre (PSF) is 26.64 per cent and viscose staple fibre (VSF) 11.98 per cent more expensive for the domestic industry.CITI has presented its case with facts and figures, noting that PSF was priced at ₹76.82 ($0.915) in the global market in October 2024. Meanwhile, the domestic price of the product was noted at ₹97.3 per kg, which was 26.64 per cent higher than the global price. The price difference was noted to be between 26.64 per cent and 36.31 per cent over the last seven months. VSF was priced at ₹141.10 (~$1.680) per kg in the global market and ₹158 per kg in the domestic market, making local prices 11.98 per cent higher than the global market rate. The price difference varied between 11.98 per cent and 18.42 per cent in the last seven months.CITI has stated that Indian domestic raw material prices are significantly higher than international prices, while competitors like Bangladesh and Vietnam have free access to such raw materials. India has imposed quality control orders (QCO) on man-made fibre (MMF) and yarn, which act as a non-tariff barrier on the imports of such raw materials, thus affecting their free flow. This has resulted in a shortage of some specialised fibres and yarns and also impacted domestic prices.The industry organisation stated that the expensive raw materials are severely affecting the cost competitiveness of downstream textile products. Since the downstream segment has the highest employment elasticity in the entire value chain, it is endangering the livelihoods of the millions of people employed in the sector.The government must consider liberalising import policies and reducing the basic customs duty (BCD) on all MMF fibres, filaments, and essential chemicals like PTA and MEG, which are critical in the production of these raw materials.CITI has renewed its demand to remove the import duty on cotton to ensure the availability of cotton at internationally competitive prices. The government could remove the BCD from all cotton varieties.The government has already excluded cotton of staple length exceeding 32.0 mm from the scope of import duty. However, this accounts for only about 37 per cent of the total cotton imports by India, and the import duty still affects about 63 per cent of the imported cotton. It argued that the duty, which was imposed to safeguard the interests of farmers, is not serving its intended purpose, rather hurting the domestic cotton textile value chain.It noted that the Indian cotton industry is importing specialised varieties of cotton such as contamination-free, organic cotton, and sustainable cotton, which are not available domestically. These are being imported under nominated businesses to meet the quality requirements of foreign clients.In India, cotton is predominantly grown by small and marginal farmers who sell their cotton during the peak season. Due to working capital constraints, the industry can only keep limited inventory and must rely on traders for the supply of cotton during the off-season. These traders, during the off-season, often supply cotton based on import price parity, thus making domestic cotton more expensive than international cotton.During the year, Indian cotton fibre prices were typically 15-20 per cent more expensive than international cotton prices, affecting the cost competitiveness of downstream value-added cotton-based textile productsread more :- Cotton farmers struggle with CCI’s strict moisture cap Andhra Pradesh