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Cotton Yarn Industry Poised for Strong Recovery in FY27; Revenue Projected to Rise 9-11%India's cotton yarn industry is expected to witness a strong recovery in the 2026-27 fiscal year (FY27). After remaining largely flat in FY26, the industry's revenue is projected to grow by 9-11%. This growth will be driven by a 6-8% improvement in yarn realizations and a 2-4% increase in volume. The industry is likely to gain momentum from improved exports and rising demand in export-oriented downstream segments such as readymade garments and home textiles.According to CRISIL Ratings, the profitability of cotton yarn manufacturers is also expected to improve alongside revenue growth. Operating margins are projected to expand by 150-250 basis points, supported by better cotton-yarn spreads. An analysis of approximately 70 cotton spinning companies within CRISIL Ratings' portfolio indicates that improved earnings will strengthen cash flows and enhance the companies' credit profiles.Ankush Tyagi, Director at CRISIL Ratings Limited, stated that exports would be a key growth driver for cotton yarn manufacturers in FY27. Export revenue is projected to grow by 12-14%, potentially raising the share of exports in the industry's total revenue to 30-31%, up from around 28% in the previous fiscal year.Rising demand from key markets like China and Bangladesh is expected to support export growth. A decline in domestic cotton production in China is likely to increase the need for imports. Meanwhile, improved political stability in Bangladesh is expected to lead to a recovery in its readymade garment industry.The domestic market, which accounts for approximately 70% of the industry's total revenue, is also projected to grow by 7-9% in FY27. Normalization in the US tariff regime and improved offtake in export-oriented downstream segments could support domestic demand.Despite a 10–15% rise in cotton prices, the cotton-yarn spread could reach ₹108–110 per kilogram in FY2027, driven by robust demand. This is expected to strengthen operating margins to 11–12%.According to Pranav Shandil, Associate Director at CRISIL Ratings, improved operating profits will bolster cash accruals, aiding companies in funding regular capital expenditure and strengthening their balance sheets. Gearing is projected to remain around 0.55–0.60 times, with interest coverage estimated at 4.25–4.50 times.However, risks such as the potential impact of El Niño on cotton production, the significant gap between domestic and global cotton prices, and any future tariff revisions will need to be monitored.READ MORE :- Weak Monsoon Triggers Crop Losses and Migration Crisis Among Farmers in Karnataka, Andhra Pradesh

Farmers in Karnataka and Andhra Pradesh Face Crisis Due to Weak MonsoonKalaburagi/Jogulamba Gadwal: A weak monsoon and a lack of rainfall have compounded the difficulties faced by farmers in the Kalyana Karnataka region and parts of Andhra Pradesh. Crops dependent on rainfall—such as soybeans, pulses, and cotton—are withering due to the absence of rain. With agricultural employment opportunities dwindling, farmers and farm laborers are being forced to migrate to cities like Bengaluru, Hyderabad, and Pune.Farmers in the Kalaburagi, Ballari, Yadgir, and Raichur districts of Kalyana Karnataka are still awaiting good rainfall. In many areas, the soil in the fields has dried up, and crops are failing. In some places, seeds failed to germinate, while in areas where plants did sprout, they have become weak and are drying up due to a lack of soil moisture.Water shortages in ponds and reservoirs have further exacerbated the farmers' plight. With insufficient water available for irrigation, many farmers are facing the crisis of having to sow their crops all over again.According to farmers' organizations, migration this time is not limited to farm laborers alone; small and medium-scale farmers are also leaving their villages in search of employment in cities due to agricultural losses. Many families are settling in other cities while making arrangements for their children's education.Madhav Reddy, President of the Karnataka Rajya Raitha Sangha-Hasiru Sene, stated that both farmers and farm laborers have been affected by the lack of rain. He urged the government to declare the affected areas drought-hit and provide relief to the farmers.Sharanabasappa Mamashetti, the Kalaburagi District President of the Karnataka Pranta Raitha Sangha, noted that farmers' crops have been completely destroyed in many areas. He demanded that the government provide free seeds and fertilizers, as many farmers are unable to afford replanting after suffering such heavy losses.Meanwhile, in Undavalli village of Andhra Pradesh's Jogulamba Gadwal district, a farmer named Razak used a tractor to clear away 10 acres of cotton crops that had been ruined by the lack of rain. He had sown cotton on leased land a month ago, but the lack of rainfall stunted the plants' growth. According to the farmer, he has suffered a loss of approximately ₹1.50 lakh.The weak monsoon has created a severe financial crisis for farmers in both states. Farmers' organizations are demanding drought relief, assistance with seeds and fertilizers, and immediate measures for the affected farmers from the government.READ MORE :- Rupee Rises 16 Paise to Open at 95.75 Against Dollar.

The rupee opened higher at 95.75/$.The Sensex was up 84.28 points or 0.11 percent at 76,920.06, and the Nifty was down 29 points or 0.12 percent at 23,966.95.On Tuesday, the Indian rupee opened 16 paise higher against the dollar at 95.75, whereas it had closed at 95.91 on Monday.READ MORE :- Gujarat Cotton Sowing Nears Last Year’s Level

Gujarat Cotton Sowing Nearly Matches Last Year; Gap Narrows to Just 0.8%Gujarat's cotton sowing has almost caught up with last year's pace, easing concerns over delayed planting earlier in the season. According to the latest data from the Gujarat Agriculture Department, cotton has been sown in 20.01 lakh hectares as of 27 July 2026, compared to 20.17 lakh hectares during the same period last year—a marginal decline of just 16,116 hectares (0.8%).The biggest drag on overall acreage continues to be Saurashtra, where cotton sowing stands at 13.58 lakh hectares, down from 14.75 lakh hectares last year. Lower acreage in key cotton-growing districts such as Surendranagar, Rajkot, Jamnagar, Morbi and Botad has kept the region behind last year's pace.However, the shortfall has been largely offset by strong gains in other regions. Middle Gujarat recorded the highest growth, with sowing rising to 2.41 lakh hectares from 1.78 lakh hectares last year. North Gujarat and South Gujarat also registered healthy increases, while districts including Vadodara, Chhota Udaipur, Sabarkantha, Ahmedabad, Bhavnagar and Amreli reported better sowing than a year ago.With cotton sowing now virtually at par with last year's level, the focus will shift to crop development and monsoon performance, which will play a crucial role in determining Gujarat's cotton production prospects for the 2026-27 season.read more :- Rupee higher 23 Paise, Closes at 95.91 Against US Dollar

The rupee higher by 23 paise to close at 95.91 against the US dollar.On Monday, the Indian rupee opened at 96.14 against the US dollar and closed at 95.91, recording a higher of 23 paise during the trading session.At close, the Sensex was up 776.01 points or 1.02 percent at 76,835.78, and the Nifty was up 228.50 points or 0.96 percent at 23,995.95. About 2646 shares advanced, 1530 shares declined, and 176 shares unchanged.

India’s Cotton Sector Undergoing Transformation Amid Import Duty Waivers and ‘Mission Cotton Revolution’New Delhi: Amidst import duty waivers and the launch of the ‘Mission Cotton Revolution,’ India’s cotton sector is navigating a phase marked by declining production and policy shifts. The government is simultaneously focusing on ensuring adequate raw cotton availability for the textile industry and advancing long-term plans to boost productivity and quality.Data indicates that the country's cotton production fell from 352.48 lakh bales in 2020-21 to 290.91 lakh bales (provisional) in 2025-26. Shifts in the area under cotton cultivation are considered the primary reason for this decline; anticipating better returns, some farmers have switched from cotton to other, more profitable crops. However, cotton productivity remained relatively stable during this period, hovering between 428 and 451 kilograms per hectare.Cotton prices have also fluctuated in line with domestic and international market conditions. Recently, international cotton prices rose by approximately 19%, while domestic prices for S-6 cotton saw an increase of around 18%. Raw cotton and cotton yarn are imported as needed to boost domestic availability and meet the requirements of the textile industry.According to the government, the total availability of cotton in the country—comprising domestic production, carry-over stocks, and imports—is sufficient to meet the estimated consumption needs of the domestic textile industry. The situation regarding cotton availability, consumption, and market trends is being continuously monitored.To provide relief to the textile industry, the government has waived the 11% import duty on cotton for the period from June 1, 2026, to October 31, 2026. Additionally, the exemption on import duty for Extra-Long Staple (ELS) cotton (ITC HS Code 52010025) continues, ensuring the availability of high-quality cotton. This exemption has been effective since February 20, 2024.Furthermore, the government has approved a five-year ‘Mission Kapas Kranti’ with a budget of ₹5,659.22 crore, aimed at enhancing cotton productivity and improving quality. This mission will be implemented from 2026-27 to 2030-31. Its objective is to make the Indian cotton sector more competitive and sustainable by improving both productivity and quality.READ MORE :- Gujarat Textile Industry Faces Cotton Crisis as Raw Material Costs and US Tariffs Raise Pressure

Cotton Crisis: Pressure from Fields to Ports; Gujarat’s Textile Industry Besieged on Multiple FrontsGujarat’s major textile industry is currently grappling with mounting margin pressures across several levels. The state—which accounts for approximately one-quarter of the country's spinning output and contributes nearly one-third of its raw cotton production—is under strain due to dwindling cotton availability, poor yields, rising energy costs, and shifting US trade policies.The impact of these challenges is evident across the ginning, spinning, weaving, and textile processing clusters stretching from Saurashtra to Surat. The issue is not limited to a shortage of raw materials; rising production costs and sluggish demand have further squeezed industry margins.The area under cotton cultivation in Gujarat has shrunk from 26.79 lakh hectares in the previous season to 23.62 lakh hectares. Faced with an erratic monsoon, rising cultivation costs, and lower returns from cotton, many farmers in Saurashtra and North Gujarat are shifting towards groundnut and other oilseed crops. Additionally, the growing menace of the pink bollworm in Bt cotton has increased both costs and risks for farmers.According to estimates by the Cotton Association of India (CAI), cotton pressing in Gujarat has dropped to around 76 lakh bales, whereas production in Maharashtra is reported at approximately 85 lakh bales.Raw cotton prices have surged from ₹54,000 per candy to over ₹66,000 per candy. However, the price of finished fabric has not risen at the same pace as yarn prices. Consequently, producers have been unable to pass the full burden of increased costs on to buyers. Industry bodies in Surat estimate that weaving and processing units have incurred losses ranging from ₹2,500 crore to ₹3,000 crore.Many units have curtailed production due to weak demand and accumulating inventories. Some mills have reduced production shifts by up to 50%, while others have decided to halt operations for up to two days a week.Energy costs have further exacerbated the crisis. Mills in Rajkot, Kadi, and Ahmedabad are forced to rely on expensive grid power due to the limited availability of low-cost captive solar and wind energy.Meanwhile, the threat of an additional 10% tariff on Indian textile products—set to take effect under the US trade framework on July 24, 2026—continues to loom. Although India holds an advantage of approximately 2.5 percentage points over certain competing nations, the effective tariff could reach around 15.5% to 16% once MFN duties are factored in.Industry bodies have urged the government to ensure a steady supply of raw cotton through the CCI, provide tariff relief within the India-US trade agreement, offer temporary relief on industrial electricity rates, and increase interest subsidies.READ MORE :- Can Madhya Pradesh Become India’s Next Textile Growth Engine? Indore-Dhar Region Emerges as New Hub

Can Madhya Pradesh Become India's Next Textile Growth Engine?The Indore-Dhar region is rapidly emerging as a new hub for the textile and apparel industry.The Indore-Dhar region of Madhya Pradesh is fast emerging as a key center for the country's textile and apparel industry. Traditionally known for agriculture and general manufacturing, this region is now developing a comprehensive textile ecosystem. The PM MITRA Park, currently being developed at Bhaisola near Badnagar, is playing a pivotal role in this transformation.Spanning approximately 2,156 acres, this integrated textile park is being developed with an estimated investment of around ₹2,063 crore. Reports indicate that investment proposals exceeding ₹20,000 crore have already been received for the project. In the initial phase, over 1,100 acres of land have been allocated to companies. Given the growing interest from investors, the Madhya Pradesh Industrial Development Corporation (MPIDC) is preparing for the next phase of land allocation.Once fully developed, the park is expected to generate more than 46,000 employment opportunities. Its objective is to integrate various activities across the textile value chain—such as fiber, yarn, and fabric production, processing, and garment manufacturing—into a single ecosystem.Infrastructure facilities such as internal roads, water supply, and drainage systems are being developed within the park, alongside an effluent treatment plant, sewage treatment plant, common facility center, testing facilities, incubation support, and plug-and-play manufacturing spaces. These amenities can help companies reduce both the time required to commence production and initial setup costs.The project is also expected to boost the development of ancillary industries and supply chains in the surrounding area. The presence of companies like Arvind Group, OFB Tech, and Jhil in the region is likely to strengthen the textile cluster. Improved road and logistics connectivity can provide the region with better access to key markets and export hubs via the national highway network and the Delhi-Mumbai Expressway. A visit by an industrial delegation from Taiwan signals growing interest among foreign investors.However, the project's long-term success will depend on effective implementation, the development of a skilled workforce, robust supply chains, and the ability to attract export-oriented companies. If these challenges are effectively addressed, the Indore-Dhar region could transform Madhya Pradesh into India's next major textile growth engine.READ MORE :- Brazil Records Highest-Ever Cotton Production at 3.92 Million Tons in 2024/25

Brazil's record cotton productionBrazil reinforced its position as the world’s leading cotton exporter after achieving a record-breaking 2024/25 harvest. According to the Brazilian Cotton Growers Association (Abrapa), the country produced around **3.92 million tons** of cotton, the highest output in its history, supported by expanded planting and improved productivity.The planted area reached approximately 2.12 million hectares, more than 6% higher than the previous season. Combined with favorable weather, advanced farming techniques, and high yields, this increase enabled Brazil to harvest significantly more cotton while maintaining the premium fiber quality for which it is internationally recognized.Strong production translated into record exports. According to CNN Brasil, Brazil was expected to ship around **2.8 million tons** of cotton during the 2024/25 season, maintaining its status as the world’s largest cotton exporter. While most of the harvest was destined for international markets, a substantial share continued to supply the domestic textile industry.It is important to distinguish between production and exports. Production refers to the total cotton harvested, whereas exports represent only the volume shipped overseas. The difference reflects the fiber consumed within Brazil by manufacturers and textile companies.The record harvest highlights the competitiveness of Brazilian agriculture. With large-scale production, consistent quality, and efficient logistics, Brazil has strengthened its role in the global cotton market. The sector supports thousands of jobs across farming, processing, and transportation while contributing billions to the economy and reinforcing the country’s trade balance. The 2024/25 season confirms Brazil’s growing influence as a global cotton powerhouse.READ MORE :- Cotton Cultivation in Punjab Falls to 80,000 Hectares; National Production Declines Over Six Years

Cotton Cultivation in Punjab Shrinks to 80,000 Hectares; Nationwide Production Declines Over Six YearsBathinda: Cotton cultivation in Punjab is steadily declining, with the area under cultivation dropping to a record low of approximately 80,000 hectares in the 2026-27 season. Data presented by Union Minister of State for Textiles Pabitra Margherita in response to a question by Rajya Sabha MP Pramod Tiwari reveals a consistent decline in both cotton acreage and production across the country over the past six years.According to data from an April 2026 meeting of the committee on cotton production and consumption, the total area under cotton cultivation in the country stood at 132.85 lakh hectares in 2020-21, falling to 114.82 lakh hectares by 2025-26. During the same period, cotton production dropped from 352.48 lakh bales to 290.91 lakh bales (one bale weighs 170 kg).A decline in cotton productivity has also been recorded at the national level. Production per hectare fell from 451 kg in 2020-21 to 431 kg in 2025-26, although productivity had reached 443 kg per hectare in 2022-23.The decline has been more pronounced in Punjab. The state's cotton acreage stood at 1.19 lakh hectares in 2025-26 but shrank to just 80,000 hectares in 2026-27. Although the state government had set a target of 1.25 lakh hectares to promote cotton cultivation, farmers achieved only about 64 percent of this goal. Experts attribute the shrinking cotton area to farmers shifting towards other crops that offer better returns. The decline in cotton production has also impacted the textile industry. There has been a significant rise in raw cotton imports to meet the demands of the domestic industry; imports increased from 5,62,224 tonnes in 2024-25 to 10,13,455 tonnes in 2025-26.The Union Minister attributed the drop in production primarily to changes in land use and farmers shifting towards alternative crops. He stated that the government is taking several measures to support the textile industry. These include an exemption on the 11 percent import duty for raw cotton from June 1 to October 31, as well as the continuation of duty exemptions on the import of high-quality extra-long staple cotton.READ MORE :- Maharashtra Kharif Sowing 2026 Reaches 74%; Soybean and Cotton Lead Crop Choices

Maharashtra Kharif Sowing 2026: Sowing Completed on 74% of Area; Soybean and Cotton Top Farmers' Choices; Pulse Cultivation DeclinesSowing operations for the 2026 Kharif season in Maharashtra have gained momentum following good rainfall during the second half of July. According to the latest data from the Agriculture Department, sowing has been completed on 1.06 crore hectares—approximately 74 percent—of the state's average Kharif area of 1.44 crore hectares. While farmers initially faced uncertainty due to a weak monsoon start, timely rains have pushed sowing into its final stages across most regions.A look at the regional breakdown reveals that the Amravati division leads with 89 percent sowing completion. It is followed by Chhatrapati Sambhajinagar (79%), Nashik (78%), Latur (77%), Kolhapur (63%), and Nagpur and Pune (61% each). In contrast, the Konkan division has recorded only 15 percent sowing so far, due to scanty rainfall and a heavy reliance on paddy cultivation.This year, farmers have shown a marked preference for cash crops. Sowing for soybean and cotton has reached 88 percent and 82 percent completion, respectively. Soybean has been cultivated across approximately 41.64 lakh hectares; farmers have been drawn to these crops by better market rates for cotton and the expectation of good prices for soybean. Conversely, pulse sowing has fallen short of expectations. While sowing for Tur (pigeon pea), Moong (green gram), and Urad (black gram) has reached 77, 56, and 59 percent respectively, the total pulse cultivation area covered stands at only 64 percent.Paddy sowing is also proceeding slowly. Due to rainfall deficits in Konkan and Eastern Vidarbha, replanting operations have reached only 24 percent completion. Meanwhile, challenges such as the need for re-sowing in certain districts, shortages of seeds and fertilizers, and weather uncertainty continue to confront farmers. Agricultural experts believe that late-sown crops will be harvested in October-November; consequently, retreating rains could affect both yield and quality. The department expects sowing to be completed in the remaining areas as well by the end of July.READ MORE :- CCI Cotton Sales Reach 87.31 Lakh Bales in 2025-26 Season