Cotlook Index: 03-08-2026
92.80 (+0.95)
CITI signs MoU to advance regenerative cotton in India
Tue. 4th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: CITI has partnered with ICAC & Merago to promote regenerative cotton farming and develop carbon credit projects in India. The initiative aims to improve soil health, lower the cotton sector's carbon footprint and create additional income for farmers through verified carbon credits, strengthening the sustainability and global competitiveness of India's textile industry.
The Confederation of Indian Textile Industry (CITI) has signed an MoU with the International Cotton Advisory Committee (ICAC) and technology company Merago Inc. to develop carbon credit projects based on regenerative agricultural practices. The initiative is designed to advance sustainable cotton production in India while enabling cotton farmers to earn additional income through carbon credit generation. The MoU was exchanged during the 56th Foundation Day celebrations of the Cotton Corporation of India on August 1, in the presence of Union Textiles Minister Giriraj Singh and senior Maharashtra government ministers Sanjay Shirsat, Sanjay Savkare, and Atul Save. Union Textiles Ministry Joint Secretary (Fibre) Padmini Singla, Textile Commissioner Vrunda Manohar Desai and Cotton Corporation of India CMD Lalit Kumar Gupta were also present at the occasion.
CITI Chairman Ashwin Chandran said, "At CITI, it has always been about industry plus farmer. Our collaboration with the International Cotton Advisory Committee and Merago reflects that philosophy by strengthening sustainability in the Indian textile and apparel ecosystem and creating additional income opportunities for farmers.” “Given the increasing focus on sustainability worldwide, the CITI-ICAC-Merago tie-up will also increase the global competitiveness of India’s textile and apparel industry by lowering the carbon footprint of India’s cotton arena,” Chandran pointed out. Under the partnership, ICAC will serve as the principal technical knowledge partner, providing agricultural expertise, technology, training, and technical support. Cotton farmers associated with CITI-Cotton Development Research Association (CITI CDRA) and its affiliated partners will adopt regenerative practices to improve soil health and increase carbon sequestration. These practices will include producing biochar and compost from agricultural biomass and applying them to cotton fields. Merago will provide the digital technology platform for project implementation and oversee carbon asset management, while CITI CDRA will lead project execution and farmer engagement. Carbon credits generated under the project will be developed, verified and transferred in accordance with Article 6 of the Paris Agreement, India's applicable laws and carbon market regulations. Verified emission reductions and removals will be recorded in the national carbon registry before their issuance, transfer or commercialisation. Subject to regulatory approvals, a designated share of the verified carbon removals will be certified as transferable carbon credits for sale in domestic and international carbon markets. Merago will manage the commercialisation of carbon credits and distribute the proceeds among CITI, ICAC and participating farmers in line with the agreed revenue-sharing framework.
India’s textile and apparel sector is the country’s second-largest livelihood generator after agriculture. India aims to create a $350 billion textile and apparel industry by 2030, including $100 billion in exports.
ICE cotton climbs on institutional buying, limited rainfall
Tue. 4th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton extended gains for a third straight session, supported by strong export demand, continued Chinese reserve buying, tightening certified stocks and rising open interest. US crop conditions weakened slightly but remained above the long-term average. Market attention is now on whether the December contract can break the key 82.96-cent resistance level.
ICE cotton futures continued to see upward trend and gained on third consecutive trading session. The advance was supported by month-beginning institutional buying, last week’s strong US export sales report, limited weekend rainfall in West Texas and continued evidence of healthy underlying physical demand. The most-active December 2026 cotton contract settled at 82.57 cents per pound, up 0.78 cent (0.95 per cent). It posted its highest close since May 20. The December contract has rallied 304 points over the past three sessions and now sits just 22 points below the July 13 high of 82.96 cents. However, it remains well below the season high of 87.40 cents recorded on May 11. All other active contracts also closed higher, gaining between 36 and 85 points, with three-day advances ranging from 92 to 333 points. Trading volume increased sharply to 56,051 contracts, compared with 35,227 contracts on Friday. Average daily trading volume stood at 34,912 contracts last week, 44,203 contracts in July, and 73,522 contracts year-to-date, indicating a significant return of market participation. There was no single catalyst behind the rally. China's State Reserve Auction recorded its 11th consecutive 100 per cent sell-out, with 8,015 tonnes sold. Total sales over the first 11 auction days reached 88,209 tonnes. Extreme heat across China's cotton-growing regions may also have encouraged reserve purchases. Open interest increased by 2,635 contracts to 324,363, indicating fresh money continued to enter the market. December open interest rose by 1,288 contracts to 195,638, while October open interest stood at 141 contracts, with 36 trading sessions remaining before First Notice Day. ICE certified stocks declined by another 3,093 bales to 87,606 bales, following 6,629 bales of decertifications during the week, reinforcing the ongoing trend of tightening nearby deliverable supplies. The latest USDA Crop Progress Report for the week ended August 2 showed squaring at 88 per cent, in line with the five-year average. Boll setting reached 55 per cent, slightly below the five-year average of 56 per cent, while boll opening was reported at 4 per cent, compared with the 6 per cent average, marking the season's first boll-opening report. US crop condition ratings weakened slightly from the previous week. The very poor category increased to 5 per cent from 3 per cent, poor rose to 15 per cent from 13 per cent, fair remained unchanged at 38 per cent, good declined to 34 per cent from 37 per cent, and excellent eased to 8 per cent from 9 per cent. Despite the weekly deterioration, the overall crop remains in better condition than the long-term average. Overall, cotton extended its rally for a third consecutive session, supported by strong export demand, continued Chinese reserve buying, tightening ICE certified stocks, rising open interest, and only limited rainfall in West Texas. While crop conditions softened slightly and outside markets were mixed, the market continues to show solid underlying demand. The immediate focus now shifts to whether the December 2026 contract can break above the key 82.96-cent resistance level and extend the rally toward new seasonal highs. This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 82.04 cents per pound (down 0.53 cent), cash cotton at 77.60 cents (up 0.85 cent), the October 2026 contract at 81.35 cents (up 0.85 cent), the March 2027 contract at 83.47 cents (down 0.66 cent), the May 2027 contract at 84.59 cents (down 0.58 cent), and the July 2027 contract at 84.16 cents (down 0.54 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Textiles, cotton emerge as focus of India-Uzbekistan partnership
Mon. 3rd Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India and Uzbekistan are seeking to strengthen economic ties, with textiles and cotton emerging as key areas of collaboration. Commerce and Industry Minister Piyush Goyal urged both countries to double bilateral trade within three years through co-investment, co-manufacturing and co-innovation, while highlighting opportunities across textiles, IT, engineering and advanced manufacturing.
Textiles and cotton emerged as key areas of collaboration as India and Uzbekistan sought to deepen economic ties, with Minister of Commerce and Industry, Government of India, Piyush Goyal calling for efforts to double bilateral trade over the next three years at the India-Uzbekistan Business Forum in New Delhi.
Goyal highlighted Uzbekistan's strength in cotton production and India's leadership in the textile sector, saying both countries could jointly expand into garment manufacturing, design and global markets. He urged businesses from both sides to co-invest, co-manufacture and co-innovate to unlock the full potential of the partnership. Bilateral trade between India and Uzbekistan has crossed approximately $1.5 billion, but Goyal said it represents only a fraction of what the two economies can achieve together. He said the strategic partnership, built on mutual trust and shared prosperity, offers significant opportunities to expand trade, investment and economic co-operation.
The minister also identified information technology, digital public infrastructure, fintech, agri-tech, engineering goods, advanced manufacturing and auto components as promising sectors for future collaboration, the Ministry of Commerce & Industry said in a press release. Referring to the recently concluded Bilateral Investment Treaty, Goyal said it would strengthen investor confidence and encourage long-term investments and business partnerships between the two countries. He called for eliminating trade barriers, promoting mutual recognition of standards, testing and certification, increasing customs digitalisation and improving trade routes to facilitate commerce. He added that both governments are working towards a structured, time-bound and outcome-oriented economic partnership. Goyal said the political leadership of Prime Minister Narendra Modi and Uzbekistan President Shavkat Mirziyoyev has given fresh momentum to bilateral relations and urged businesses to deepen engagement to realise the partnership's full economic potential.
Textile industry confidence slips as order intake weakens: ITMF
Tue. 4th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ITMF's latest survey shows the global textile industry remains under pressure as business sentiment and order intake weakened, while capacity utilisation and order backlogs declined. Weak demand and geopolitical uncertainty continue to dominate concerns, although tariff pressures have eased sharply and order cancellations remain low, indicating a more stable operating environment despite subdued activity.
The International Textile Manufacturers Federation (ITMF) has published the results of its 39th Global Textile Industry Survey (GTIS), conducted from 14 to 22 July 2026 among companies along the entire global textile value chain. Worldwide, 10% of participants rated their business situation as good, 53% as satisfactory and 37% as bad — a balance of -26pp, down from -17pp in May but still well above the 2023 lows. All regions are now in negative territory, from South Asia at -3pp to North & Central America at -58pp. Brands and retailers were the only segment with a positive balance (+11pp); machinery manufacturers were weakest at -40pp, while garment producers fell sharply from +5pp in May to -25pp. Business expectations for the coming six months eased marginally from +16pp to +14pp, with 47% of respondents anticipating no change. Africa (+50pp) and South Asia (+32pp) were the most optimistic regions and machinery manufacturers the most confident segment (+36pp). Order intake dropped to -27pp from -9pp in May, suggesting the May reading was an outlier. The average order backlog eased to 2.3 months and global capacity utilization slipped to 71%, ranging from 75% in South-East Asia to 64% in North and Central America. Weak demand and geopolitics remain the industry's leading concerns for 56% and 46% of the respondent, respectively, while raw material prices, energy costs and tariffs have all receded — tariffs to just 10%, down from a peak of 40% in September 2025. Order cancellations fell to 2% globally, and the inventory index improved despite still being under average, with stocks accumulating downstream at brands and retailers while upstream segments stay lean.
Mission for Cotton Productivity
Tue. 4th Aug 2026, (Source: www.pib.gov.in)
The Mission for Cotton Productivity (KAPAS KANTI) was approved by the Government on 5th May, 2026 with an overall outlay of Rs. 5,659.22 crore for a period of five years (2026-27 to 2030-31). Of this, Component-I(A) implemented by the Department of Agricultural Research and Education (DARE) has an outlay of Rs. 555.05 crore and Component-I(B) implemented by the Department of Agriculture and Farmers Welfare (DA&FW) has an outlay of Rs. 3,804.17 crore. Components-II and III, implemented by the Cotton Corporation of India and the National Jute Board under the administrative control of the Ministry of Textiles, have approved outlays of Rs. 1,000 crore and Rs. 300 crore, respectively.
Under Component-I(A), an amount of approximately Rs. 11.50 crore has been approved for cotton productivity-related activities under the All India Coordinated Research Project (AICRP) at Raichur, Chamarajanagar and Dharwad in Karnataka. During 2026-27, an amount of Rs. 4,850.13 lakh (Central Share: Rs. 2,910.08 lakh and State Share: Rs. 1,940.05 lakh) has been allocated to Karnataka under Component-I(B). The Government of Karnataka has earmarked Rs. 1,100.81 lakh for Raichur district under Component-I(B) during 2026-27. Under Component-I(B), the Mission initially covers 140 potential districts across 14 major cotton-growing States. The selection of these districts has been based on their cotton-growing potential. The list of districts is indicative, and the States have flexibility to revise the districts covered based on their annual plans, requirements and/or performance. Raichur has been included as it is one of the major cotton-growing districts in Karnataka. The Government of Karnataka has informed the district-wise physical targets for upscaling of technologies through demonstrations, including targeted beneficiaries, under Component-I(B) of the Mission for 2026-27. The details are placed below. The mission envisages to increase the production to 40 lakh bales of cotton and enhance productivity to 860 kg lint/ha by 2030-31 for Karnataka. The year wise targets provided by State Government of Karnataka are placed below.
The details are as follows:
(i) Cotton Testing Laboratories: Under Component-II of the Mission, provision has been made for setting up 50 cotton testing laboratories in clusters of cotton-producing districts across the country. The Mission does not specify State-wise or district-wise allocation of these laboratories. Their allocation will be determined through the process prescribed under the scheme, including the Request for Proposal (RFP) for implementation in Public-Private Partnership (PPP) mode.
(ii) Kasturi Cotton Bharat Traceability Facilities: The Mission provides for output-based incentives for production of Kasturi Cotton Bharat-certified cotton bales by eligible Ginning and Processing (G&P) factories. Eligible G&P factories, including those located in Karnataka, are eligible for consideration under the scheme, subject to its provisions.
(iii) Ginning and Processing (G&P) Units: The Mission provides for output-based incentives to eligible G&P factories for production of Kasturi Cotton Bharat-certified cotton bales, in accordance with the provisions of the scheme.
The Government of Karnataka has furnished the year-wise targets under the Mission, which are placed below.
Implementation of Component-I(B) of the Mission is monitored through State Level Committees and District Level Committees constituted in accordance with the provisions of the Mission. The monitoring mechanism is applicable to all districts covered under the Mission, including Raichur. The Mission provides for monitoring against the year-wise targets furnished by the State Government.
BHARAT TEX 2026
Tue. 4th Aug 2026, (Source: www.pib.gov.in)
Bharat Tex 2026, organized by the Bharat Tex Trade Federation (BTTF) with the support of the Ministry of Textiles, has been conceived around the Hon'ble Prime Minister's 5F Vision of Farm to Fibre to Factory to Fashion to Foreign. Since its inception in the year 2024, Bharat Tex mirrored this value chain directly in its physical layout, with exhibition halls sequenced from fibres, yarns and raw materials through fabric and apparel manufacturing to finished, export-ready products, enabling buyers to engage with the complete textile value chain under a single unified platform. The Bharat Tex serves as a platform for facilitating Business-to-Business (B2B), Government-to-Government (G2G) and Business-to-Government (B2G) engagement among global and domestic stakeholders across the textile value chain. The event provides opportunities for manufacturers, exporters, artisan groups, handloom and handicraft clusters, MSMEs, global brands, retailers, sourcing companies and investors to interact through buyer-seller meetings, business networking sessions, country engagements and thematic discussions. Facilitated through the Export Promotion Councils (EPCs), regional weavers, handloom cooperatives and artisanal exporters engaged directly with international buyers through structured B2B matchmaking sessions, enabling traditional craft clusters to showcase their products to global sourcing and procurement teams. Indi Haat, organized alongside Bharat Tex 2026, further complemented these efforts by bringing together weavers and artisans from across the country, providing them with a dedicated platform to interact with domestic and international buyers and expand their market outreach.
In addition, MSMEs, start-ups, and weavers from Champion and Aspirational Districts were invited to participate in the event, providing them exposure to the broader textile ecosystem, emerging market trends, technological innovations and networking opportunities with industry leaders, buyers and institutional stakeholders. Together, these initiatives sought to foster inclusive participation and create greater market access for stakeholders across different segments of the textile sector. The State of Chhattisgarh was provided a dedicated 100 sq. metre exhibition pavilion at Bharat Tex 2026. The pavilion showcased the State's rich textile and handicraft traditions, handloom products, regional clusters, industrial capabilities and investment opportunities before domestic and international buyers, global brands, industry leaders and investors. It also highlighted the State's efforts to promote traditional crafts alongside modern textile value chains.
Bharat Tex 2026 featured a dedicated Eco-Stitch Sustainability & Circularity Hub, presented jointly by the Clothing Manufacturers Association of India (CMAI) and the Global Alliance for Textile Sustainability (GATS), under the theme “Sustainable, Circular and Competitive Bharat.” The Hub comprised six curated zone, the India Impact Wall, Circularity at Scale, From Waste to Global Wardrobe, Made in Circular Bharat, the Material & Innovation Library, and the Circular Bharat Forum, bringing together recyclers, manufacturers, brands, innovators and technology providers working on circular textile solutions. The Ministry is also promoting circularity and sustainability through 'Weave the Future', an initiative of the Office of the Development Commissioner (Handlooms), which facilitates collaboration among artisans, designers, industry, academic institutions, and innovators to encourage responsible production, resource efficiency, material innovation, and sustainable livelihoods. The initiative also promotes upcycling, recycling, repair, repurposing and circular design practices, thereby strengthening the competitiveness and sustainability of India's regional textile hubs.
To further promote knowledge exchange and adoption of sustainable practices, 41 dedicated knowledge sessions were organized on themes such as circular economy, sustainable fibres and materials, textile recycling, ESG and sustainability reporting, traceability, responsible sourcing, decarbonisation, resource efficiency, water stewardship, digital product passports, climate resilience, green finance and emerging global sustainability regulations. The Bharat Tex 2026 recorded the following key outcomes: 1,647 exhibiting companies (1,628 domestic and 19 international) across 65,000+ square metres of exhibition space, conducted over 29,000 structured B2B meetings. Additionally, over 40 MoUs signed across trade, investment, technology, sustainability and institutional collaboration, including a Letter of Intent between the Bharat Tex Trade Federation and Première Vision Paris. During Bharat Tex 2026, 22 new buyer markets were added to the buyer network, further expanding India's global sourcing footprint. The event also facilitated the onboarding of over 500 new Indian exporters through the participating EPCs, broadening the country's export base and enabling greater participation of Indian enterprises in international markets. Collectively, these outcomes strengthened Bharat Tex 2026 as a platform for promoting exports, fostering international business partnerships and enhancing the global visibility of the Indian textile and apparel industry. This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA MARGHERITA in a written reply to a question in Lok Sabha today.
Nuvama Sees MMF Demand Rising
Tue. 4th August 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Declining Cotton Supply to Drive Demand for Man-Made Fibers: Nuvama
New Delhi: The continuous decline in India's cotton surplus is putting pressure on raw material availability for the textile industry. Consequently, demand for man-made fibers (MMF) is expected to rise in the coming years, likely accelerating investment and capacity expansion in this sector. This projection is made in a report by Nuvama Institutional Equities.
According to the report, India's cotton market is shifting from a surplus position towards balanced supply. Cotton production is estimated to drop from 6.31 billion kg in the 2021 cotton season (CS) to approximately 4.95 billion kg in CS26. Meanwhile, cotton imports have risen from 0.26 billion kg to nearly 0.80 billion kg during the same period. Conversely, a sharp decline has been recorded in cotton exports. Exports are projected to fall from 1.28 billion kg in CS21 to around 0.20 billion kg in CS26. The report attributes the increased supply pressure in the cotton market to limited domestic availability and shifts in global demand. This shift has also impacted cotton prices. Prices for Shankar-6 cotton surged from ₹110 per kg in CS21 to ₹221 per kg in CS23. Although prices subsequently moderated to around ₹155 per kg, India's traditional price advantage has significantly eroded.
Nuvama noted that the global cotton trade is also undergoing changes. Spinning mills in Bangladesh have emerged as major buyers of Indian raw cotton, while India is increasing imports of superior-quality staple cotton from the US and Australia due to insufficient domestic production. The report states that the margin regarding raw material availability for the spinning industry is steadily shrinking. Spinners may face increased margin pressure during years with poor harvests. However, for the textile industry, this shift could boost MMF-based production, and companies will need to diversify their fiber blends. According to Nuvama, India has long been a surplus producer offering cotton at prices 8–11% lower than the global market, but this competitive advantage has now largely eroded. The report notes that the parity between domestic and global cotton prices in FY26 has been primarily due to a temporary waiver of import duties. According to the report, the import duty waiver has been extended for a limited period. Nuvama believes this situation indicates that the government's primary focus has been on supporting farmers' incomes; meanwhile, to enhance their competitiveness, textile mills will need to shift towards alternative fiber sources.
