Cotlook Index: 05-08-2026
93.00 (-0.70)
ICE cotton gains on weaker US dollar, persistent weather concerns
Wed. 5th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton futures extended gains to an 11-week high, supported by a weaker US dollar and persistent weather concerns across major producing regions despite profit booking. Strong trading volumes, extreme heat in the US, India and China, and tightening production expectations reinforced the bullish outlook, while traders remained focused on August weather and the key 84-cent resistance level.
ICE cotton futures gained yesterday despite signs of profit booking that created selling pressure. US cotton found support from the weakness of the US dollar, which made US cotton purchases more affordable for overseas buyers. Weather also remained the dominant bullish fundamental factor. The most active December 2026 contract settled at 83.02 cents, up 0.56 cent, or 0.68 per cent. Although the contract recorded its highest settlement since late May, it closed 106 points below the session's high. The December contract traded between 81.11 cents and 84.08 cents, a 297-point intraday range. The settlement below the session's high indicated profit taking after fresh buying pushed prices to new 11-week highs. All nearby contracts closed higher by 23 to 71 points. Trading volume surged to 64,544 contracts, the highest in nearly a month, compared with 53,715 contracts in the previous session, confirming that the rally was supported by strong market participation rather than thin trading. The combination of higher prices and heavier volume indicates genuine bullish conviction, although the inability to hold the day's highs suggests some profit taking at elevated levels. The US dollar weakened for the fifth consecutive trading session, falling to its lowest level in nearly two weeks, as traders increasingly expected the Federal Reserve to begin cutting interest rates later this year. A weaker dollar improved the competitiveness of US cotton exports and remained one of the key drivers behind the rally. Market analysts said the softer US dollar has consistently supported cotton by making US fibre more attractive to international buyers. Weather remained the dominant fundamental story. Persistent extreme heat across the Northern Hemisphere, including West Texas, India and China's Xinjiang region, continued to raise concerns about crop stress during the crucial boll development period. Forecasts called for temperatures approaching 50°C in parts of Xinjiang, while hot and dry conditions persisted across several major producing regions, increasing the risk of lower yields and tightening global supplies. Analysts increasingly believe the market is moving beyond simply discussing weather risk and is now pricing in potential production losses, with August being the most critical month for cotton development in many producing countries. In India, monsoon rainfall remains below normal in several cotton-growing regions, maintaining concerns over crop development and supporting the global weather premium. Crude oil initially rallied after reports of attacks on oil tankers in the Persian Gulf, temporarily supporting cotton by increasing polyester production costs. However, oil later surrendered much of its gains as hopes for easing Middle East tensions reduced concerns over supply disruptions, limiting additional support for cotton.
Despite the volatile energy market, cotton continued to outperform as weather concerns outweighed weakness in outside markets. Deferred buying interest also remained constructive, as evidenced by the December 2027 contract making fresh contract highs for the third consecutive session, indicating confidence in the longer-term cotton outlook. Overall, cotton extended its rally to fresh 11-week highs as a weaker US dollar, persistent global heat, tightening production expectations and strong technical momentum outweighed late-session profit taking. Heavy trading volume continued buying in deferred contracts and widespread weather concerns across major producing regions reinforced the bullish outlook, while traders remain focused on August weather, global crop conditions and whether December futures can sustain a breakout above 84 cents per pound. This morning (Indian Standard Time), ICE cotton for December 2026 traded at 82.86 cents per pound (down 0.16 cent), cash cotton at 79.09 cents (up 0.71 cent), the October 2026 contract at 81.84 cents (up 0.71 cent), the March 2027 contract at 84.59 cents (down 0.12 cent), the May 2027 contract at 85.79 cents (down 0.07 cent), and the July 2027 contract at 85.79 cents (up 0.28 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
CITI-ICAC Pact for Carbon Credits
Thu. 6th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Partnership between CITI, ICAC, and Merago to Benefit Cotton Farmers through Carbon Credits
Chennai: The Confederation of Indian Textile Industry (CITI) has signed a Memorandum of Understanding (MoU) with the International Cotton Advisory Committee (ICAC) and the technology company Merago Inc. The partnership aims to develop carbon credit projects based on regenerative agriculture practices. This initiative will promote sustainable cotton production in India and provide cotton farmers with an opportunity to earn additional income through carbon credits. Under the agreement, ICAC will serve as the project's lead technical partner, providing farmers with modern agricultural techniques, training, technical expertise, and necessary consultancy. Meanwhile, CITI–Cotton Development and Research Association (CITI-CDRA) and associated farmers will adopt regenerative agriculture practices to improve soil health and enhance carbon sequestration. The project involves producing biochar and compost from agricultural residues (biomass) for use in cotton fields. These techniques will improve soil fertility and organic quality, increase carbon storage, and help reduce reliance on chemical fertilizers. Additionally, the initiative is considered significant for boosting long-term cotton productivity and making farming more sustainable. Merago Inc. will provide the digital technology platform for project implementation and manage carbon assets. On the other hand, CITI-CDRA will lead the efforts to onboard farmers, provide training, and ensure effective implementation at the grassroots level. The development, verification, and transfer of carbon credits generated under the project will be carried out in accordance with Article 6 of the Paris Agreement, applicable Indian laws, and regulatory provisions governing carbon markets. All records related to verified emission reductions and carbon removals will be registered in the national carbon registry. Upon receiving regulatory approvals, a designated portion of the verified carbon removal will be certified as transferable carbon credits for domestic and international carbon markets. Merago Inc. will manage the commercialization of these credits, while the proceeds will be distributed among CITI, ICAC, and the participating farmers in accordance with a pre-determined revenue-sharing arrangement. Experts believe that this initiative could create a new income stream for farmers. Furthermore, it will promote climate-friendly agriculture in India, improve soil quality, and strengthen India's position in sustainable cotton production on a global scale. If this model proves successful, it could be implemented on a larger scale across other cotton-producing states in the future, thereby offering a greater number of farmers the opportunity to engage with carbon markets and earn additional income.
Heavy Rains Threaten Cotton Crop
Thu. 6th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Heavy Rains Batter Maharashtra and Gujarat; Cotton Crop in Peril. Jalgaon (Maharashtra)/Nasvadi (Gujarat): Persistent heavy rainfall has compounded the woes of farmers in the cotton-growing regions of Maharashtra and Gujarat. In Maharashtra's Jalgaon district, waterlogging is fueling a rapid spread of root rot disease in cotton crops, while in the Nasvadi taluka of Gujarat's Chhota Udepur district, river flooding has submerged approximately 100 acres of agricultural land. Crops such as maize, pigeon pea (arhar), and vegetables, alongside cotton, have been severely affected. Farmers fear that this dual crisis of flooding and disease could deal a serious blow to their financial stability. Heavy rains and flooding on July 30 and 31 affected cotton crops across approximately 35,000 hectares in Jalgaon district. Plant growth has stalled in many fields due to lingering water stagnation. Waterlogging is accelerating the outbreak of root rot; in many areas, cotton plants that previously appeared lush and green are suddenly wilting and drying up. Agricultural experts warn that failure to control the disease in time could lead to a significant drop in production. According to the Cotton Research Center (Jalgaon) of Mahatma Phule Agricultural University, this disease affects both indigenous and American cotton varieties. Prolonged water stagnation in the soil promotes the rapid growth of the disease-causing fungus, which then spreads across the field via rainwater or irrigation water. In infected plants, roots rot, the bark peels off easily, and the plants suddenly wilt and collapse. A key symptom of the disease is the discoloration of the lower root section—turning yellow initially and later black. Experts have advised farmers to immediately arrange for field drainage, remove and destroy infected plants, and apply a treatment by dissolving 700 grams of Copper Oxychloride in 100 liters of water and pouring it around the base (root zone) of the plants. Mounding soil around the base of the plants is also recommended if necessary. Meanwhile, in Khodiya village of Nasvadi Taluka, Chhota Udepur district, Gujarat, flooding in the Main River following continuous rainfall has caused severe losses to farmers. Driven by the strong current, river water surged into the fields, completely submerging crops—including cotton, maize, pigeon pea (arhar), and vegetables—across approximately 100 acres of land. The accumulation of nearly two feet of silt buried the crops, destroying months of the farmers' hard work in a single night. Local farmers have urged the administration to conduct an immediate survey and provide appropriate compensation and financial assistance. Agricultural experts believe that the ongoing heavy rains, waterlogging, flooding, and the rising incidence of diseases like root rot in Maharashtra and Gujarat could impact this season's cotton production. They state that timely drainage, disease management, and government support could significantly mitigate the losses faced by the farmers.
Belagavi Hits 95% Kharif Sowing
Thu. 6th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Karnataka: Belagavi Achieves 95% Sowing Target Despite 4% Rainfall Deficit
Belagavi (Karnataka): Despite receiving 4% less monsoon rainfall than normal, Karnataka's Belagavi district has delivered an impressive performance by achieving 95% of its sowing target for the Kharif season. According to the Agriculture Department, sowing has been completed across 7.16 lakh hectares against a set target of 7.52 lakh hectares—the highest coverage in the state. Officials state that a good yield is expected this season due to the adequate availability of seeds, fertilizers, and agricultural equipment, combined with favorable weather conditions. The district has recorded 341 mm of rainfall so far, compared to the normal average of 354 mm. This represents a deficit of only 4%, which did not significantly impact sowing operations. Department data shows sowing coverage as follows: paddy 49,554 hectares (88.61%) against a target of 55,925 hectares; cowpea 1,17,001 hectares (75.9%) against 1,54,032 hectares; tur (pigeon pea) 14,084 hectares (96.4%) against 14,600 hectares; groundnut 13,166 hectares (99.5%) against 13,230 hectares; cotton 17,578 hectares (70.3%) against 25,000 hectares; and other crops 10,457 hectares (45.9%) against 22,773 hectares. Meanwhile, sowing exceeded targets for several crops: soybean reached 1,10,726 hectares (111.8%) against a target of 99,000 hectares; moong (green gram) reached 55,044 hectares (115.2%) against 47,752 hectares; urad (black gram) reached 17,204 hectares (114.6%) against 15,000 hectares; and sugarcane reached 31,220 hectares (102.04%) against a target of 30,500 hectares. At the taluka level, Savadatti (105%) and Bailhongal (104%) delivered the best performance. Sowing has been completed 100% in Kittur and Nippani. Additionally, sowing coverage was recorded at 99% in Chikkodi, 95% in Raibag, 94% in Hukkeri, Khanapur, and Yargatti, 92% in Gokak, Mudalagi, and Kagwad, 91% in Athani and Ramdurg, and 84% in Belagavi taluka. Rahul Shinde, Chief Executive Officer of the Zilla Panchayat, stated that against a demand for 37,543 quintals of seeds for the Kharif season, 37,267 quintals were stocked. So far, 31,669 quintals have been distributed to farmers, while 5,598 quintals remain available. He affirmed that there is no shortage of seeds in the district and that necessary steps are being taken to ensure the benefits of government schemes reach farmers on time. H.D. Kolekar, Joint Director of Agriculture, reported that the district required 2,50,736 tonnes of fertilizer for the Kharif season, and 2,87,370 tonnes have been supplied so far. Furthermore, adequate stocks of 8,408 tonnes of Urea and 1,265 tonnes of DAP are available. Officials say that better production is expected in the district this season due to adequate agricultural resources and favorable weather.
TN Budget Boosts Textile Sector
Thu. 6th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
TN Budget 2026-27: Announcement of Design Institute and Technology Center to Boost Textile Sector
Tiruppur/Erode: The DMK-led Tamil Nadu government has allocated ₹1,678 crore to the Textiles Department in the 2026-27 budget. Aiming to modernize the textile industry and enhance its global competitiveness, the government has made several key announcements. These include the establishment of the 'Tamil Nadu Institute of Design' at a cost of ₹60 crore and the 'Tiruppur Textiles Technology Center' at a cost of ₹10 crore. The budget also announced the launch of the 'Technical Textiles Transformation Scheme.' This scheme will be implemented in collaboration with international academic and research institutions and with financial support from the Tamil Nadu Technical Textiles Mission. Through this initiative, entrepreneurs, Micro, Small, and Medium Enterprises (MSMEs), and textile manufacturers will be provided with technical training, technology transfer, international expertise, market insights, innovation support, and business mentorship. Reacting to the budget, A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), stated that the budget reflects the government's commitment to transparent governance, the timely implementation of development schemes, and inclusive economic growth. He noted that the new industrial policy, TN Single Window 3.0, the expansion of SIPCOT industrial parks at a cost of ₹3,500 crore, and the allocation for the textile sector would enhance the ease of doing business, attract investment, strengthen the manufacturing sector, and boost export competitiveness. According to him, these initiatives will also accelerate the goal of transforming Tamil Nadu into a $1.5 trillion economy by 2035-36.
President of the Tiruppur Exporters Association (TEA)... M. Subramanian stated that the proposed Tiruppur Textiles Technology Center would further strengthen Tiruppur's position as the country's leading knitwear export hub. He also expressed the expectation that the government would take a swift decision on other pending demands of the industry, including the establishment of a Knitwear Board and a trade center. Meanwhile, TEA Joint Secretary Kumar Duraiswamy reiterated the demand for a special budgetary provision for the education of migrant workers' children and expressed hope that the government would soon take positive steps in this regard as well.
Rajasthan Cotton Sowing Falls 15%
Thu. 6th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Cotton Sowing Drops 15% in Rajasthan; Oilseed Acreage Increases
Recent data on Kharif sowing in Rajasthan up to August 4, 2026, reveal contrasting trends for cotton and oilseed crops. While the total acreage for oilseeds has increased compared to the same period last year, cotton acreage has witnessed a significant decline. These figures are based on the state government's Kharif sowing progress report. Cotton has been sown across 534.18 thousand hectares, down from 628.50 thousand hectares during the same period last year. This represents a decline of 94.32 thousand hectares (15.01%); the sown area covers approximately 74% of the state's target of 720 thousand hectares. Among oilseed crops, soybean acreage stands at 925.95 thousand hectares, compared to 977.26 thousand hectares a year ago, marking a decrease of 51.30 thousand hectares (5.25%). However, groundnut has seen a significant rise; sowing has reached 1,085.71 thousand hectares, up from 967.49 thousand hectares last year. This increase of 118.22 thousand hectares represents a year-on-year growth of 12.22%. Similarly, castor acreage has risen from 62.79 thousand hectares to 71.67 thousand hectares, an increase of 8.88 thousand hectares (14.15%). Despite the reduction in soybean acreage, the expansion in groundnut and castor cultivation has pushed the state's total oilseed sowing area to 2,248.67 thousand hectares, up from 2,151.07 thousand hectares during the same period last year. The total oilseed acreage has increased by 97.60 thousand hectares, marking a year-on-year rise of 4.54%. Recent sowing patterns indicate that farmers in Rajasthan have shifted towards groundnut and castor, while the acreage for cotton and soybean remains below last year's levels. The total Kharif crop acreage will depend on rainfall conditions and the progress of sowing during the remaining weeks of the season.
President of India to present National Handloom Awards 2025 at 12th National Handloom Day Celebrations on 7 August
Thu. 6th Aug 2026 (Source: www.pib.gov.in)
The Ministry of Textiles will celebrate the 12th National Handloom Day on 7 August 2026 at the Rashtrapati Bhavan Cultural Centre (RBCC), New Delhi, reaffirming the Government's commitment to preserving, promoting and strengthening India's rich handloom heritage while recognising the invaluable contribution of the country's handloom weaving community to the nation's cultural and economic development. The Hon'ble President of India, Smt. Droupadi Murmu, will grace the celebrations as the Chief Guest and present the Sant Kabir Handloom Awards and National Handloom Awards 2025. The function will also be attended by the Union Minister of Textiles, Shri Giriraj Singh, Union Minister of State for Textiles, Shri Pabitra Margherita, Secretary (Textiles), Smt. Neelam Shami Rao, Development Commissioner (Handlooms), Dr. M. Beena, Members of Parliament, senior Government officials, representatives of the handloom industry, master weavers, designers, exporters, artisans, Sant Kabir and National Handloom Awardees, and other distinguished guests from across the country. A major highlight of the celebrations will be the conferment of 22 prestigious awards, comprising 3 Sant Kabir Handloom Awards and 19 National Handloom Awards, recognising outstanding achievements in weaving, innovation, design development, marketing initiatives, start-up ventures and producer companies associated with the handloom sector. Instituted under the Handloom Marketing Assistance (HMA) component of the National Handloom Development Programme (NHDP), these awards represent the highest national recognition for excellence in India's handloom ecosystem. The Sant Kabir Handloom Award, the country's highest honour for handloom weavers, recognises extraordinary craftsmanship, lifelong dedication and sustained contribution towards preserving and promoting India's weaving traditions. The National Handloom Award honours handloom weavers and other stakeholders who have demonstrated outstanding creativity, quality, innovation and excellence while preserving traditional skills and embracing modern techniques. The awardees are selected through a rigorous multi-level evaluation process involving expert committees to ensure transparency, objectivity and recognition of excellence across all segments of the handloom sector.
The celebrations will also witness the release of four commemorative postage stamps celebrating India's rich and diverse handloom weaving traditions. Two publications, "Earth. Root. Thread – Aal Dyed Handloom Textiles of Central India" and the Handloom Awards Book 2025, will also be unveiled during the function. An exhibition of award-winning handloom products will be organised on the sidelines of the event, while live demonstrations of traditional Kani weaving and Wall Hanging weaving will offer visitors a glimpse into the diversity, artistry and craftsmanship of India's handloom traditions. In addition to the national function, exhibitions, designer conclaves, IIHT conclaves and other promotional activities are being organised across the country to mark National Handloom Day and celebrate the country's vibrant handloom traditions. India's handloom sector continues to be one of the country's largest sources of sustainable rural employment, supporting the livelihoods of more than 35 lakh people, with women constituting over 70 per cent of the workforce. Besides its significant contribution to the rural economy, the sector remains a custodian of India's rich textile heritage and an important contributor to environmentally sustainable production practices.
Observed every year on 7 August, National Handloom Day commemorates the Swadeshi Movement launched on 7 August 1905, which gave renewed impetus to indigenous industries and India's handloom sector. Since its inception in 2015, the observance has celebrated the artistry, skill and dedication of India's handloom weavers while reaffirming the Government's commitment to the preservation, promotion and sustainable development of the handloom sector.
