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Signs of Increase in Cotton Acreage; Prices Surge by 25%Amidst a sharp surge in cotton prices and growing apprehensions regarding production levels, the country's textile industry has expressed heightened concern. However, there is good news for farmers: the acreage under cotton cultivation is expected to expand in the upcoming season. According to the Cotton Association of India (CAI), the area dedicated to cotton cultivation could increase by approximately 7 percent in 2026. Improved market rates and an upward revision in the Minimum Support Price (MSP) are considered the primary drivers behind this trend.Over the past two months, cotton prices have witnessed an increase of approximately 25 percent. Currently, the price for Shankar-6 (31 mm) cotton has reached ₹67,100 per candy—equivalent to roughly ₹18,869 per quintal—whereas prior to the onset of tensions between Iran and the U.S., its price stood at around ₹15,000 per quintal. International geopolitical conditions and global inflationary pressures have impacted the cotton market, the repercussions of which are now becoming evident within the textile industry as well.The government has fixed the MSP for medium-staple cotton at ₹8,267 per quintal and for long-staple cotton at ₹8,667 per quintal. An increase of ₹557 per quintal has been implemented across both categories. The realization of remunerative prices has boosted farmers' incomes, encouraging them to cultivate cotton across a larger area in the upcoming season.According to government estimates, cotton production in the current season is projected to stand at 292 lakh bales, while domestic demand could reach 328 lakh bales. Meanwhile, the CAI has projected a total production of 334 lakh bales for the 2025-26 season. Cotton imports are expected to reach 47 lakh bales, while exports are projected at 18 lakh bales.According to the CAI, the cotton surplus for the current season could rise to 103.59 lakh bales, with the closing stock at the end of the season estimated at 85.59 lakh bales. To ascertain the actual situation, the CAI has decided to constitute a seven-member committee to conduct a survey through an independent agency and to reconcile stock figures.read more :- Khandesh Cotton Output Seen Falling; Ginning Units Under Pressure

Maharashtra: Signs of Declining Cotton Production in Khandesh; Ginning Industry ConcernedMaharashtra: Indications point to a significant decline in cotton production in the Khandesh region this year—a trend expected to have a direct impact on the cotton processing industry. Given the prevailing circumstances, it is estimated that the region will produce approximately 1.8 million cotton bales (each weighing 170 kg) by the end of September 2026.Continuous rainfall—both before and after October during this season—has inflicted severe damage upon the cotton crop. Consequently, production has dropped, and ginning and pressing units are unable to procure the expected volume of raw material. According to industry experts, achieving the targeted production goal for processed cotton (lint) may prove challenging under these conditions.Typically, Khandesh produces between 2.2 to 2.4 million cotton bales annually; however, a consistent decline in production has been observed over the past few years. Productivity has been particularly affected in the Jalgaon district. Key factors cited for this decline include a reduction in the area under cotton cultivation, disease outbreaks, and adverse weather conditions.Generally, cotton processing units in Khandesh operate at full capacity following the Diwali festival; however, this year, a shortage of raw materials has compelled most ginning and pressing units to operate at a reduced pace.Currently, the daily arrival of cotton in the region stands at approximately 1,500 quintals. During the previous season, the average daily arrival in November and December was around 18,000 quintals. This year, however, a distinct decline in arrivals was evident right from the first fortnight of the month.Factory operations were also disrupted for a period due to the Diwali festivities and the elections. Direct procurement from farmers—known as 'farm-gate' purchasing—is also proceeding at a limited scale, as most farmers no longer have any remaining cotton stock.Following the cotton harvest, farmers have shifted their focus to alternative crops—such as gram (chana), wheat, and maize—depending on the availability of water. In many villages, the cotton picking process was completed by the beginning of January. Picking proceeded rapidly in rain-fed regions during December, but it is now becoming clearly evident that the final yield will fall short of expectations.read more :- Weak Demand Pushes Cotton Below CCI Rates

Cotton Selling Below CCI Rates Amid Global Price Softness; Yarn Market Also SluggishAs cotton futures prices on ICE soften, domestic re-sellers and multinational companies have begun selling cotton at rates lower than the prices fixed by the Cotton Corporation of India (CCI). This situation has emerged at a time when both domestic and global demand remain weak.From the beginning of February through mid-May, ICE cotton futures prices witnessed a sharp surge. Rising from a level of approximately 60.52 cents per pound on February 9, prices reached 88 cents per pound by May 11. However, subsequently—driven by prospects of improved weather in the US and Brazil, a decline in crude oil prices, a strengthening US dollar, and uncertainties regarding global demand—prices retreated to the 76–77 cents per pound range.According to Anand Popat of CotYarn Trade Link, the softness in the global futures market was reflected in the Indian spot market as well, though the decline in domestic prices remained limited. The primary reasons for this were low arrivals, limited availability in the spot market, and strong domestic basis levels. He noted that Indian cotton is currently still trading at a premium of approximately 8.55 cents per pound relative to ICE July futures.The CCI had commenced the sale of cotton procured during the 2025–26 season. Initially, it had lowered its selling prices to around ₹54,600 per candy; however, in light of global trends, these rates were subsequently raised to ₹68,600 per candy. Nevertheless, sales have been suspended since May 22 due to technical reasons. The CCI procured approximately 10.5 million bales of cotton this season; of these, about 7.2 million bales have already been sold, while a stock of 3.3 million bales remains.According to market sources, re-sellers and multinational companies are currently selling their stock at a rate approximately ₹2,000 per candy lower than the CCI's listed price. Meanwhile, the yarn market also remains sluggish. Due to weak demand, yarn prices have witnessed a decline of ₹30–35 per kilogram.In the meantime, the Cotton Association of India (CAI) has projected that the area under cotton cultivation could increase by approximately 7 percent during the upcoming Kharif season. The government has also hiked the Minimum Support Price (MSP) for cotton by ₹557 per quintal for the 2026–27 season.read more :- Cotton Prices Extend Losses Amid Weak Demand

Cotton Market Review: Prices Continue to Decline Amidst Weak Demand and Global PressuresThe bearish trend in the cotton market persisted last week, as support from the demand side appeared to be consistently waning. The impact of the current off-season is clearly evident within the industry, resulting in relatively weak new orders from the downstream textile sector. Concurrently, pressure was also observed in the futures market, with the Zhengzhou cotton futures contract slipping below the critical psychological threshold of 16,000 RMB/ton.In the domestic market, the spot price for Grade 3128B lint cotton stood at approximately 17,480 RMB/ton as of May 25—marking a decline of about 1.31% compared to the previous week. Although the cotton sales rate remains robust and national-level processing is nearing completion, this underlying strength has proven insufficient to prop up prices. While the pace of sales is indeed brisk at present, it is primarily driven by the liquidation of existing stocks rather than by fresh demand.An uptick has also been recorded on the import front. In April 2026, cotton imports surged on a year-on-year basis, while the cumulative imports for the January-to-April period also witnessed a significant increase. This has further intensified domestic supply pressures, thereby exerting additional downward pressure on prices.The situation within the downstream textile sector remains mixed. While large-scale enterprises have managed to maintain a certain degree of stability in their order books, small and medium-sized enterprises (SMEs) are grappling with a dearth of demand and mounting inventory pressures. The accumulation of finished goods inventory has weakened the production-to-sales ratio, consequently curtailing fresh procurement activity.Pressure on cotton prices was also evident on the international stage. Following initial volatility, ICE cotton futures experienced a sharp decline—a movement influenced by broader weakness across global commodity markets and prevailing economic uncertainties.Looking ahead, cotton prices are likely to remain volatile. In the absence of a clear recovery in demand and policy support, the downward trend in the market may persist.read more:- China Extends Cotton Support Policy Through 2028

China Extends Cotton Target Price Policy Through 2026–28China has extended its cotton target price policy for the Xinjiang region for a period of three years (2026–2028). Under this decision, the target price has been maintained at 18,600 RMB (approximately $2,737 per ton). The objective of this move is to provide long-term support to domestic cotton farmers, stabilize their incomes, and ensure supply security amidst uncertainties prevailing in the global market.Xinjiang is China's largest cotton-producing region, accounting for a significant portion of the country's total output. The extension of this policy is expected to boost the confidence of local farmers, as they will continue to receive guaranteed income in the form of subsidies based on the difference between the market price and the government-set target price. This will help mitigate fluctuations in production and make cotton cultivation more sustainable.Beijing's move is not limited merely to income security; it also aims to make the cotton industry more modern, high-quality, and transparent. The government is promoting supply mechanisms that ensure traceability and minimize the potential for adulteration. This could encourage technological investment and the adoption of advanced agricultural practices within the industry.On a global level, this policy could lend support to international cotton prices in the medium term, as domestic prices within China are likely to remain relatively stable. It may also influence China's import patterns, particularly when global prices are more competitive.Overall, this extension reflects China's strategy to maintain stability within its cotton sector amidst an evolving global trade landscape, climate-related risks, and the imperative of supply chain security.read more :- Brazil Cotton Farmers Benefit as Global Prices Rally

Brazilian Cotton Farmers Gain From Global Price Rally Driven by Supply DisruptionsBrazil’s cotton farmers are poised to benefit from a strong rally in global cotton prices, which have risen more than 20% this year and recently reached their highest level since 2024. The surge is being driven by a combination of geopolitical disruption and weather-related supply risks in key producing regions.Tensions in the Middle East have affected shipping routes around the Strait of Hormuz, disrupting flows of naphtha, a petrochemical feedstock used to produce synthetic fibers. As synthetic fiber supply tightens, some demand is shifting back toward natural cotton. At the same time, forecasts of dry weather in major U.S. growing areas have raised concerns about lower output, adding further upward pressure on prices.Brazil, now the world’s largest cotton exporter, is well positioned to take advantage of these conditions. Export estimates show the country is on track to ship a record 3.1 million tons in the season ending in June, about 9% higher than the previous year. Strong demand from China, along with India’s temporary removal of import duties, has supported the increase in shipments.Farmers are quickly responding to higher prices. In Bahia state, producer Sergio Pitt initially pre-sold only about a third of his crop, but after the rally he increased forward sales to around 90%. Many growers are using improved revenues to lock in input costs such as chemicals and fertilizers and strengthen their financial positions after a difficult period marked by high costs and tight credit.Brazil’s rise in global cotton trade reflects structural advantages, including stable weather in its Center-West region and strong trade ties with Asia. Meanwhile, weather stress in the U.S. Cotton Belt, particularly in Texas, has weighed on American production.Analysts suggest that continued supply disruptions could push prices even higher, potentially toward $1 per pound under extreme scenarios. However, Brazil’s efficiency and scale mean it is likely to remain a dominant and expanding force in the global cotton market.read more :- Monsoon Arrival Delayed; Kerala Onset Now Expected in Early June

India’s Monsoon Delayed: Kerala Onset Now Expected in Early JuneIndia’s southwest monsoon, which was expected to arrive early this year, has missed its anticipated May 26 onset over Kerala, according to the India Meteorological Department (IMD). The revised forecast now places the monsoon’s arrival between June 2 and 4 — slightly later than the usual June 1 onset and nearly a week behind earlier projections.The IMD had initially predicted an early arrival due to favourable atmospheric conditions, raising hopes of relief from the intense heatwave affecting large parts of the country. However, changing ocean temperatures, wind patterns, and atmospheric pressure systems altered the timeline.For the IMD to officially declare the monsoon onset over Kerala, at least 60% of 14 designated weather stations in the state must record a minimum of 2.5 mm rainfall for two consecutive days, along with specific wind and cloud conditions. As of May 25, those requirements had not been met.Despite the delayed declaration, Kerala has already been receiving significant rainfall. The IMD has issued yellow alerts for districts including Thiruvananthapuram, Kollam, Alappuzha, and Ernakulam, warning of heavy rain and thunderstorms. Similar alerts remain in place across Kerala and Lakshadweep through the week.Meteorologists also note that even after the monsoon officially sets in, its early phase may remain weak, with slower-than-usual progress toward northern India and no immediate surge in rainfall.Meanwhile, northern, central, and western parts of the country continue to battle severe heatwave conditions. Regions such as East Uttar Pradesh, Vidarbha, East Madhya Pradesh, and West Rajasthan are among the worst affected. Delhi has repeatedly recorded temperatures above 45°C, while nighttime temperatures have remained close to 30°C, offering little relief.read more :- The Rupee higher by 06 paise to close at 95.69 per dollar.

On Wednesday, the Indian Rupee higher by 06 paise to close at 95.69 per dollar, while it had opened at 95.75 in the morning.At close, the Sensex was down 141.90 points or 0.19 percent at 75,867.80, and the Nifty was down 6.55 points or 0.03 percent at 23,907.15. About 2168 shares advanced, 1877 shares declined, and 160 shares unchanged.read more :- Dhule Kharif Sowing Target Set at 3.76 Lakh Hectares; Cotton Area Declines

Dhule : Kharif Sowing Target in District Nears 3.75 Lakh Hectares; Cotton Area Shrinks as Trend Shifts Toward Maize and Soybean*The Agriculture Department has set a total sowing target of 376,669 hectares for the Kharif season in the district this year. This target remains roughly consistent with that of the previous year. The district's total cultivable area stands at 378,432 hectares, the majority of which has been designated for the sowing of Kharif crops.The crop basket for this Kharif season includes cereals (rice, sorghum, pearl millet, finger millet, and maize), pulses (pigeon pea, green gram, black gram), and oilseeds (groundnut, sesame, sunflower, and soybean), alongside commercial crops such as cotton and sugarcane. Anticipating rainfall ranging from normal to above-normal—as forecast by the Meteorological Department—the Agriculture Department has already initiated preparations to ensure the availability of seeds and fertilizers.According to agriculture officials, if the rains arrive on schedule, sowing operations are expected to proceed at a rapid pace.*Decline in Cotton Cultivation Area; Shift Toward Alternative Crops*Over the past few years, the district has witnessed a consistent decline in the area dedicated to cotton cultivation. Previously, a significant portion of the Kharif land was utilized for cotton farming; however, a reduction in this area has now been recorded.Key factors cited for the decline in cotton cultivation include pest infestations, rising costs of pesticides, increased labor expenses, and market price volatility. Consequently, farmers are now pivoting toward alternative crops.*Maize and Soybean Emerge as Preferred Alternatives*There has been a rapid surge in farmers' interest toward the cultivation of maize and soybean within the district. Farmers perceive these crops as relatively less expensive and less labor-intensive, as they require fewer pesticides and spraying interventions compared to cotton.For this very reason, the area under maize and soybean cultivation is steadily expanding during the Kharif season, effectively replacing cotton.read more :- Brazil Cotton Exports Jump Despite Softening Prices

Strong Growth in Brazil's Cotton Exports in May 2026; Momentum Sustained Despite Slight Dip in PricesBrazil's raw cotton exports recorded a sharp increase during the first 15 working days of May 2026. According to government statistics, this data is included in a report by the Secretariat of Foreign Trade (SECEX), which operates under the Ministry of Development, Industry, Trade, and Services.The report indicates that the daily average export volume during this period was 67.8% higher compared to May 2025. While the daily average in May 2025 stood at 9,152.6 tons—resulting in a total export of 192,204.3 tons over 21 working days—this average surged to 15,356 tons per day during the initial 15 working days of May 2026. So far this month, a total of 230,339.3 tons of raw cotton have been exported.This rapid surge in exports also had a positive impact on revenue. The average daily export revenue rose to approximately US$23.681 million, representing a 60.7% increase compared to the US$14.738 million recorded in May of the previous year. However, a decline was observed in the average export price per ton. This figure dropped from US$1,610.2 per ton in May 2025 to US$1,542.1 per ton this month—a decrease of 4.2%.Overall, the revenue generated from raw cotton exports during the first 15 working days of May 2026 amounted to approximately US$355.215 million, whereas this figure stood at US$309.489 million for the entire 21-working-day period in May 2025.Pressure was also evident in the global cotton market, as trading remained closed on the New York Stock Exchange due to the Memorial Day holiday. According to market analysts, profit booking, the possibility of rain in U.S. producing regions, and lower crude oil prices have exerted downward pressure on cotton prices. The decline in oil prices has made polyester more competitive, thereby impacting the demand for natural fibers.In Brazil's domestic market as well, the recent surge in cotton lint prices appears to be losing momentum. This is attributed to a decline in global prices and buyers waiting for greater clarity before making new purchases.read more:- India Cotton Stocks Strong as Sowing Area May Rise 7%

A SUMMARISE REPORT ON PRESENT COTTON SCENARIO (POSITION AS ON 30/04/2026) (Each bale170 kgs.)▪️Total pressing estimate during crop year 2025-2026 is estimated as 334.50 lakh bales & upto 30-04-2026 total 310.50 lakh bales have been pressed. Considering above till April-2026 end total availability of cotton may be assesed as 412.89 lakh bales including import of 41.80 lakh bales and Opening stock of 60.59 lakh bales.▪️Cotton consumption in this cotton season may touch 338.00 lakh bales and upto 30-04-2026 about 197.16 lakh bales reported as consumed. (SIS)▪️Export upto April-2026 end is found total 18.00 lakh bales against estimation  for this season year of 15.00 lakh bales.▪️It is revealed that during current crop  end total 47.00 lakh bales may be imported. Upto April-2026 about 41.80 lakh bales have been arrived at different indian ports. (SIS)▪️Kepping in view the above , total available stock as on 30.04.2026 is calculated to the tune 412.89 lakh bales, consisting of opening stock, total pressing & import. (SIS)▪️As on 30-April-2026 stock with the mills is found to the tune of 98.00 lakh bales where as with CCI/MFED MNCS, Ginner , Treaders and Exporters it comes around 108.73 lakh bales.▪️Better cotton prices and higher farmer income may boost India’s cotton sowing area by around 7% in ensuing season.read more:- Indian Rupee Opens 7 Paise Lower Against US Dollar at 95.75