Organic Cotton: Traceability & TrustThe global organic cotton market is expanding rapidly. Valued at $1.1 billion in 2023, it is projected to reach $25 billion by 2032 (Fortune Business Insights).1 As demand for transparency accelerates and more farmers shift to organic practices, one thing is clear: credible, traceable evidence is now essential for success in the modern textile supply chain.Ensuring Organic IntegrityOrganic cotton delivers major environmental benefits—reduced water and energy use, and minimal toxic chemicals. But the transition is demanding and requires new skills, resources, and long-term brand support. CottonConnect helps in this shift, safeguarding integrity from seed to shelf through:Farmer Empowerment: Training in organic farm management, soil fertility, and natural pest control.Robust Assurance: A verification framework that strives to uphold the highest organic standards. In 2023–24, our programmes achieved 99% organic cotton integrity (Impact Report 2024).2Digital Traceability with TraceBaleOnce farm-level integrity is assured, traceability becomes crucial to maintain it and provides support in substantiating brand claims. TraceBale, our digital tool, creates resilient supply chains with verifiable, bottom-up sourcing data through: Unique farmer QR codesMEL App capturing farm-level production dataGIS farm mapping for precise location trackingTraceBale delivers visibility from farm group to finished product, giving brands reliable, actionable insights to support sustainability claims.The DNA Marker AdvantageTo strengthen assurance further, we partner with Haelixa to integrate physical DNA markers into fiber, providing scientific evidence of origin.By integrating digital traceability, physical markers, and transparent data management, CottonConnect connects farmers with global brands—helping make organic cotton a viable, profitable business model, not just an environmental commitment.“Traceability is important to achieving regulatory compliance, but it also forms the bedrock of responsible business. It helps ensure every stage of the supply chain is understood, allowing issues to be addressed head-on.”READ MORE :- The rupee opened 6 paise lower against the dollar at 89.93.
The rupee opened 6 paise lower at 89.93/USD.The Sensex was up 186.17 points or 0.22 percent at 85,406.77 and the Nifty was up 64.95 points or 0.25 percent at 26,194.55. Approximately 1284 shares advanced, 728 declined, and 151 remained unchanged.READ MORE :- The rupee opened 9 paise higher at 89.87/USD.
On Wednesday, the Indian rupee closed at 89.87 against the dollar, the same level at which it had opened in the morning.Finally, the Sensex was up 545.52 points or 0.64 percent at 85,220.60, and the Nifty was up 190.75 points or 0.74 percent at 26,129.60. Approximately 2555 shares advanced, 1330 declined, and 123 remained unchanged.Read More :- The rupee opened 9 paise higher at 89.87/USD.
The rupee opened 9 paise higher against the dollar at 89.87.The Indian rupee opened at 89.87 against the dollar on Wednesday, compared to its closing rate of 89.78 on Tuesday.READ MORE :- The rupee closed 15 paise higher at 89.78 against the dollar.
On Wednesday, the Indian rupee closed 15 paise higher at 89.78 against the dollar, after opening at 89.93.At close, the Sensex was down 20.46 points or 0.02 percent at 84,675.08, and the Nifty was down 3.25 points or 0.01 percent at 25,938.85. About 1718 shares advanced, 2113 shares declined, and 137 shares unchanged.read more :- Cotton supply tightens as Indian govt procures 38 lakh bales at MSP
Cotton Supply Tightens as India Buys 38 Lakh Bales at MSPThe Cotton Corporation of India's MSP-led procurement has absorbed 38.7 lakh cotton bales, tightening open-market supply despite weak yarn, fabric and garment demand.With stocks locked in warehouses, cotton prices remain elevated, squeezing spinning margins.Industry is seeking phased CCI stock releases aligned with demand to rebalance the value chain, especially in key producing states.The Indian government has procured 230.23 lakh quintals of seed cotton (kapas) until December 19, according to procurement figures released by the Cotton Corporation of India (CCI). This translates into 38.70 lakh bales of 170 kg cotton procured over the first 80 days of the 2025–26 marketing season, which began on October 1. CCI has been purchasing cotton at the minimum support price (MSP), which is currently higher than prevailing market prices. As a result, the domestic market is facing elevated cotton prices amid CCI’s procurement and subdued demand from downstream industries.CCI’s aggressive procurement in the ongoing 2025–26 season is creating a paradox for the downstream textile industry. While MSP-backed buying has supported farm-gate prices, the large volume of cotton moving into CCI warehouses has reduced free-market availability, even as demand for cotton yarn, fabrics and garments remains weak.According to CCI procurement figures received by the domestic industry, the corporation had procured 230.23 lakh quintals of kapas as of December 19, 2025. At an average lint recovery of 35 per cent, this translates into roughly 38.70 lakh bales. This quantity has effectively been withdrawn from open circulation, tightening near-term availability for spinners and ginners.Industry sources point out that the timing of this withdrawal of cotton from the open market is critical. Yarn offtake remains sluggish, fabric inventories are comfortable, and garment demand (both domestic and export-led) continues to be cautious. In such a demand environment, higher cotton prices driven by restricted availability are exerting pressure on spinning margins rather than supporting value-chain recovery.The impact is most visible in central and southern India, where procurement has been concentrated. Telangana and Maharashtra together account for more than 60 per cent of total CCI purchases so far, leaving mills in these regions increasingly dependent on warehouse-linked cotton rather than spot-market supplies.Spinners maintain that while MSP procurement is necessary in distress years, large front-loaded buying without a clearly defined liquidation roadmap risks creating artificial tightness. With cotton locked in warehouses, prices fail to reflect downstream demand realities, widening the gap between raw material costs and finished goods realisations.Industry stakeholders are therefore urging a phased and transparent release of CCI stocks, aligned with yarn and fabric demand cycles, to restore balance across the value chain and prevent prolonged stress on mill economics.Read more :- Tamil Nadu : Yarn price rises after open-end mills stopped production.
Yarn Rates Rise in Tamil Nadu After Open-End Mills Shut DownCOIMBATORE: The price of yarn supplied by open-end (OE) mills to powerlooms has risen by Rs 5 per kilogram due to their halt in production for the last week, resulting in continuous demand.The yarn price has increased to Rs 142 from Rs 137 per kg in the last week. However, OE mills have stopped procuring waste cotton from the spinning mills as its price remains unchanged.Operators of the OE mills said they have resumed the production with waste cotton in hand and without going for new purchase from the spinning mills.The OE mills cut production by 50% and some had ceased production fully, claiming they could not operate the mills due to increase in the price of waste cotton procured from the spinning mills by Rs 13 per kg in the last three months.About 600 OE mills in Coimbatore, Tiruppur, Erode, Salem, Karur, Madurai and Virudhunagar in Tamil Nadu announced production halt on December 21.M Jayabal, the president of the Recycle Textile Federation said, "While the spinning mills are escalating the price for the waste cotton irrationally, OE yarn price for the 20s weft yarn type dipped in the last two months by Rs 8 per kg. Due to the production halt and subsequent demand from powerloom, the price has increased by Rs 5 per kg in the last eight days.Since the yarn price has recovered gradually, OE mills have started operation with the waste cotton in stock." The mills have stopped the purchase of waste cotton from the spinning mills as they have not changed the price, he added."Cotton is sold at the rate of Rs 53,000 per candy. Waste cotton price was fixed based on the cotton price for the last 15 years. Considering the present cotton price, the waste cotton should be sold below Rs 97 per kg. However, the spinning mills have increased the price from Rs 100 to Rs 113 per kg (comber noil rose) in a syndicate manner.When the spinning mills under the National Textile Corporation were in operation, the waste cotton was procured on auction basis by OE mills. Based on the auction price, private spinning mills were supplying at the same price.After NTC mills ceased their production, spinning mills started fixing prices for waste cotton in a syndicate manner without auction," said G Arulmozhi, the president of the Open-End Mills Association (OSMA).OE mills could start procuring waste cotton from spinning mills if they reduce the price by at least Rs 5 per kg, he added.READ MORE :- Piyush Goyal says Australia will remove 100% tariffs on Indian exports from January 1
Australia to Scrap 100% Tariffs on Indian Exports from Jan 1: Piyush GoyalCommerce Minister Piyush Goyal said on Monday (December 29, 2025) that under the Economic Cooperation and Trade Agreement (ECTA) between the two countries, Australia will provide duty-free access to all Indian exports from January 1, 2026. The minister was commenting on the third anniversary of the deal, which came into effect on December 29, 2022."From January 1, 2026, 100% of Australian tariff lines for Indian exports will be zero-duty," Mr. Goyal shared on X on Monday (December 29, 2025). "Over the past three years, this agreement has resulted in consistent export growth, improved market access, and strengthened supply chain resilience, benefiting Indian exporters, MSMEs, farmers, and workers alike."The ECTA was an 'early harvest' deal, covering certain trade-related issues between the two countries, and both sides are currently negotiating a Comprehensive Economic Cooperation Agreement (CECA) that will be broader and deeper in scope.According to Mr. Goyal, India's exports to Australia increased by 8% in 2024-25, improving India's trade balance, and saw "robust growth" in sectors such as manufacturing, chemicals, textiles, plastics, pharmaceuticals, petroleum products, and gems and jewelry."Agricultural exports registered broad-based growth, with sharp increases in fruits and vegetables, marine products, spices, and exceptional growth in coffee," Mr. Goyal added.READ MORE :- Textile Ministry Set to Receive $122 Million from Cotton Productivity Mission
Textile Ministry to Get $122M Boost for Cotton Productivity MissionAccording to industry sources, the Ministry of Textiles is poised to receive an allocation of approximately ₹1,100 crore (US$122 million) from the Indian government's new Cotton Productivity Mission. This move aims to strengthen the country's textile value chain. This allocation represents more than 20% of the mission's total proposed budget of approximately ₹6,000 crore (US$668 million).The funding is coming from the five-year Cotton Productivity Mission, announced in the Union Budget 2025-26, with the objective of addressing declining cotton production and quality issues in India and revitalizing the country's textile sector. Under the scheme, a significant portion of the total expenditure is being allocated to agencies involved in agricultural research and production, but the Ministry of Textiles has negotiated for a substantial share to be directed towards post-harvest and processing activities.According to officials familiar with the discussions, the ministry will utilize these funds to modernize ginning and pressing facilities, improve lint quality control, and enhance the handling of cotton bales to ensure high-quality raw material reaches textile mills. These measures aim to reduce contamination and deficiencies that currently undermine competitiveness in both domestic and export markets.Experts note that cotton production in India has declined for several consecutive seasons, and yield per hectare remains significantly lower than the global average – factors that have put increasing pressure on raw material supply for the textile industry. Proponents of the mission argue that investment in post-harvest infrastructure is crucial to reversing this trend and reducing reliance on imported cotton.The implementation of the mission and the release of funds are still contingent on final cabinet approval, which has been delayed since the initial announcement of the scheme. Government representatives have consistently emphasized the need for sustained inter-ministerial coordination to effectively implement the program. This mission is part of a broader government strategy to improve cotton productivity, encourage the cultivation of high-value varieties, including extra-long staple cotton, and strengthen the competitiveness of India's textile exports.READ MORE :- INR Opens Stronger by 05 Paise at 89.93
Rupee opened 05 paise higher at 89.93/USDIndian rupee opened marginally higher at 89.93 per dollar on Tuesday against Monday's close of 89.98.read more :- Bangladesh textile and garment bodies seek restoration of local yarn incentives
Bangladeshi Textile Industry Demands Restoration of Yarn Incentives Amid Rising Cost PressuresBangladesh’s ready-made garment (RMG) exporters and textile millers have jointly intensified calls for the restoration of government cash incentives on the use of locally produced yarn, warning that the recent policy changes could weaken the country’s textile–apparel supply chain and hurt export competitiveness.Leading industry bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA), have urged the Ministry of Finance to reinstate a 5% cash incentive on local yarn usage. The request follows a recent reduction in the incentive to 1.5% as part of Bangladesh’s transition from Least Developed Country (LDC) status.Industry leaders argue that the sharp cut has increased production costs for exporters and weakened the backward linkage textile sector. They believe restoring higher incentives would help boost local value addition, which is becoming increasingly important for maintaining competitiveness under evolving global trade conditions, including the United States’ reciprocal tariff framework.In a letter dated December 24, BTMA President Shawkat Aziz Russell highlighted multiple pressures facing the sector, including geopolitical tensions from ongoing global conflicts, depreciation of the taka, rising gas tariffs, higher labour costs, and disruptions in energy supply. The association has also requested an extension of the export cash incentive scheme under Bangladesh Bank FE Circular No. 28, proposing that it be extended from December 31, 2025, to December 31, 2028.Exporters have additionally suggested a 10% direct incentive for spinning mills to revive domestic yarn production and offset competition from cheaper imports, particularly from India. Many local mills are reportedly facing large unsold inventories, forcing them to reduce production and operate below capacity.Industry stakeholders warn that without adequate incentive support, Bangladesh’s backward linkage industry could weaken further, potentially disrupting yarn supply for the RMG sector. Together, textiles and apparel account for nearly 85% of Bangladesh’s total export earnings and remain critical to foreign exchange stability.Stakeholders also note that WTO rules allow developing economies transitional policy support during adjustment periods. They question Bangladesh’s move toward phasing out cash incentives while competing textile-exporting countries continue to support their industries through subsidies and policy incentives.With the fiscal year-end approaching, exporters and millers are closely watching government decisions, as the incentive framework is seen as crucial for sustaining export growth and maintaining the strength of Bangladesh’s industrial base.Read More :- The rupee closed 5 paise lower against the dollar at 89.98.
On Monday, the Indian rupee closed at 89.98 against the dollar, compared to its opening rate of 89.93.At the close of the market, the Sensex fell by 345.91 points or 0.41 percent to 84,695.54, and the Nifty declined by 100.2 points or 0.38 percent to 25,942.10. Approximately 1395 shares advanced, 2595 declined, and 144 remained unchanged.Read More :- Tariff impact to moderate H2 FY26 Indian cotton yarn realisation: ICRA
ICRA: Tariff Impact on Cotton Yarn to Ease in H2 FY26Following a flattish H1 FY26, the impact of US tariff on Indian cotton spinners is expected to moderate cotton yarn realisation in H2, ICRA said.Cotton spinners' revenues are projected to drop by 4-6 per cent in FY26 and margin contraction is likely to be 50-100 bps.Moderation in cotton prices is likely to offset the impact to an extent.Material expansion in capacity creations is not expected in FY26.Following a flattish first half (H1) of fiscal 2025-26 (FY26), the trickle-down effect of US tariff on Indian cotton spinners is expected to moderate cotton yarn realisation in the second half, according to ICRA.Revenues of cotton spinners are projected to decline by 4-6 per cent in FY26 and margin contraction is likely to be 50-100 basis points (bps). Moderation in cotton prices is expected to offset the impact to an extent.Any positive developments around the ongoing tariff-related negotiations with the United States could help soften the impact to an extent, the Moody’s Ratings affiliate said in a report titled ‘Indian Cotton Spinning Industry: Trends & Outlook’After witnessing a modest recovery in FY25 with increase in domestic yarn consumption by 2 per cent year on year (YoY), the Indian cotton spinning industry, is navigating a challenging phase in FY26 amidst a mix of stable domestic demand and effects of reciprocal and punitive tariffs levied by the United States on Indian apparel exports.To mitigate the impact, Indian apparel exporters are providing sizeable discounts, which are being absorbed throughout the value chain (including spinners).The import duty exemption on cotton imports in India till December 2025 and recent relaxation on quality control orders for both viscose staple fibre (VSF) and several yarns and polyester fibres is likely to moderate raw material prices for manmade fibre (MMF) yarn manufacturers, it said.“While this supports readymade garments manufacturers with access to raw material at competitive prices, it exposes domestic MMF yarn manufacturers to competition from import suppliers,” noted ICRA.Domestic cotton fibre prices fell by around 3 per cent month on month (MoM) in November 2025. Average cotton yarn prices fell by 4 per cent.This resulted in contribution levels moderating to ₹96/kg in November 2025 from ₹103 per kg in H1 FY26. ICRA anticipates contribution levels are likely to stabilise at ₹98-100 per kg for FY26 due to moderation in realisation expected in H2 FY26.ICRA's sample set of 13 companies, which accounts for 25-30 per cent of the industry's revenue, is expected to report a 4-6 per cent decline in revenues on a YoY basis in FY26.Additionally, margins are expected to contract by 50-100 basis points in FY26, primarily due to weaker performance expected in H2.Given the available capacities, material expansion in capacity creations is not expected in FY26 in the sector, ICRA added.READ MORE :-The rupee opened 8 paise lower at 89.93/USD.
The rupee opened 8 paise lower at 89.93 per dollar.The Indian rupee opened at 89.93 against the dollar on Monday, compared to its previous close of 89.85.READ MORE :- TASMA urges Finance Minister to extend duty-free cotton import facility
TASMA requests that the Finance Minister expand the duty-free cotton import program.It will help mills in the country to overcome shortage of the natural fibre and be competitiveThe Tamil Nadu Spinning Mills Association (TASMA) has urged Finance Minister Nirmala Sitharaman to extend duty-free imports of cotton beyond December 31, 2025, as the country could face a cotton shortage in view of lower production.TASMA President A P Appukutty, in a letter to the Finance Minister, said extending duty-free imports may ease the availability of cotton and help mills to competitively price their products in the global market. Welcoming the government’s move to extend duty-free imports from September 30, 2025, to December 31, 2025, he said it helped mills to import cotton at a price lower by 11 per cent and offer their products at a competitive price in the global market. The decision proved crucial when the industry faced a critical situation due to the imposition of 50 per cent tariffs by the US on all Imports.Lower production estimatePointing to the Committee on Cotton Production and Consumption, estimating cotton production for this season (October 2025-September 2026) lower at 292.15 lakh bales (170 kg), Appukutty said domestic availability will be the lowest compared to the past few years. Extending the duty-free imports further will benefit mills, particularly at a time when cotton arrivals are reported to be low.Read More :- China's Xinjiang achieves record cotton output in 2025
China's Xinjiang achieves record cotton output in 2025Harvesting machines shuttle among the cotton fields in the Mongolian Autonomous Prefecture of Bayingolin, northwest China's Xinjiang Uygur Autonomous Region, September 29, 2025.Northwest China's Xinjiang Uygur Autonomous Region posted a record cotton output of over 6 million tonnes in 2025, official data showed on Friday.The region produced 6.165 million tonnes of cotton this year, accounting for 92.8 percent of the national total, according to the National Bureau of Statistics.Xinjiang's cotton planting area has expanded to nearly 38.88 million mu (about 2.59 million hectares), which was up 5.9 percent year on year, and its average yield has come in at 158.6 kilograms per mu, up 2.4 percent year on year.Favorable weather conditions throughout the growing season helped boost output, with strengthened policy support, advances in agricultural technology, and improved talent development also contributing to higher productivity, experts say.The overall mechanization rate of cotton cultivation and harvesting in Xinjiang is expected to exceed 97.5 percent this year, boosting large-scale, mechanized and intelligent cotton production further.Xinjiang remains China's largest cotton-producing region. The country's cotton output rose 7.7 percent from 2024 to 6.641 million tonnes in 2025.READ MORE :- The Textiles Ministry is set to receive ₹1,100 crore from the Cotton Productivity Mission to boost quality and manufacturing
| title | Created At | Action |
|---|---|---|
| The Organic Cotton Imperative: Traceability & Trust | 01-01-2026 18:34:47 | view |
| The rupee opened 6 paise lower against the dollar at 89.93. | 01-01-2026 17:28:47 | view |
| The rupee closed stable at 89.87/USD. | 31-12-2025 22:56:22 | view |
| The rupee opened 9 paise higher at 89.87/USD. | 31-12-2025 16:53:14 | view |
| The rupee closed 15 paise higher at 89.78 against the dollar. | 30-12-2025 22:49:28 | view |
| Cotton supply tightens as Indian govt procures 38 lakh bales at MSP | 30-12-2025 22:04:32 | view |
| Tamil Nadu : Yarn price rises after open-end mills stopped production. | 30-12-2025 19:34:40 | view |
| Piyush Goyal says Australia will remove 100% tariffs on Indian exports from January 1 | 30-12-2025 18:28:53 | view |
| Textile Ministry Set to Receive $122 Million from Cotton Productivity Mission | 30-12-2025 18:17:00 | view |
| INR Opens Stronger by 05 Paise at 89.93 | 30-12-2025 17:35:59 | view |
| Bangladesh Textile Industry Pushes to Restore Yarn Incentives | 30-12-2025 01:26:36 | view |
| The rupee closed 5 paise lower against the dollar at 89.98. | 29-12-2025 22:56:34 | view |
| Tariff impact to moderate H2 FY26 Indian cotton yarn realisation: ICRA | 29-12-2025 18:50:09 | view |
| The rupee opened 8 paise lower at 89.93/USD. | 29-12-2025 16:43:58 | view |
| TASMA urges Finance Minister to extend duty-free cotton import facility | 27-12-2025 22:23:49 | view |
| China's Xinjiang achieves record cotton output in 2025 | 27-12-2025 19:03:53 | view |
