Cotlook Index: 06-08-2026
93.70 (0.20)
India seeks policy boost to improve textiles industry competitiveness
Sun. 9th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India's parliamentary commerce committee has urged stronger support for textile and apparel exporters facing US tariff uncertainty. It recommended faster implementation of PM MITRA, PLI and Samarth schemes, specialised MMF clusters, stronger RoDTEP and RoSCTL support, concessional export finance and US warehousing hubs. It also called for greater focus on sustainable textiles, carpets and handlooms.
An Indian parliamentary panel has called for stronger policy and financial support for the country’s textile and apparel industry amid tariff uncertainty and weakening demand in the US market, while urging greater diversification towards technical textiles, man-made fibres (MMF), sustainable textiles, home furnishings and high-value apparel. The Department Related Parliamentary Standing Committee on Commerce, headed by Rajya Sabha MP Dola Sen, presented its 200th Report on ‘Evaluation of India–US Trade Relations’ to both Houses of Parliament. The committee examined the challenges arising from US tariff measures and recommended measures to protect affected sectors and improve India’s export competitiveness. The committee said greater diversification towards technical textiles, MMF products, sustainable textiles, home furnishings and high-value apparel would be necessary to strengthen India’s long-term competitiveness in international markets. It also sought faster implementation of PM MITRA Parks, the Production Linked Incentive (PLI) Scheme and the Samarth Scheme to modernise the textile sector and improve productivity. In particular, it recommended that the Ministry of Textiles establish specialised MMF manufacturing clusters within new PM MITRA parks, giving micro, small and medium enterprises (MSMEs) easier local access to synthetic raw materials and helping production align with global demand, Rajya Sabha Secretariat said in a press release. The panel also recommended strengthening support available under the Remission of Duties and Taxes on Exported Products (RoDTEP), Rebate of State and Central Taxes and Levies (RoSCTL), Interest Equalisation Scheme and other export promotion measures. Liquidity support for textile MSMEs should be enhanced through concessional working capital, export credit, credit guarantee cover and faster disbursement of financial assistance, it said. Banks and financial institutions should also ensure timely sanction of export credit to viable exporters facing temporary stress from tariff-related disruptions. Significantly, the committee proposed exploring an emergency relief programme under RoSCTL to compensate MSME textile exporters for price reductions demanded by US buyers. Such support, it said, could provide a financial cushion against business closures and potential job losses. To address delivery-time disadvantages, the committee recommended that the Ministry partner with industry bodies to establish government-subsidised textile warehousing hubs at major US shipping entry points. It also proposed green-channel, fast customs corridors at Indian ports. The combination of locally held US inventories and quicker customs clearance could help Indian exporters shorten delivery lead times, reduce dependence on intermediaries and compete more effectively with faster global suppliers. The committee also highlighted challenges facing India's carpet and handloom industries. It warned that higher tariffs and weaker US demand could reduce artisan incomes and employment while allowing competing suppliers to increase their market share. For carpet exporters, it recommended marketing assistance through trade fairs, branding, Geographical Indication (GI) promotion, buyer-seller meets and design development. For handloom exporters and traditional weaving communities, it sought enhanced support for international exhibitions, branding, GI promotion, digital marketing, product diversification, design innovation and expansion into new export markets. More broadly, the committee identified stagnation in traditional, labour-intensive sectors such as textiles and clothing as an area requiring policy intervention. It recommended technology-upgradation grants and a specialised market-linked incentive scheme to help textile exporters diversify product designs in line with changing US consumer preferences.
India not in favour of common BRICS currency creation: Minister Goyal
Mon. 10th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India does not favour creation of a common BRICS currency, Commerce and Industry Minister Piyush Goyal said. He reiterated India's preference for trade settlements in national currencies over a unified monetary system at a BRICS trade and industry ministers meeting in Jaipur. Balanced trade, boosting cross-border investment and access to affordable financing for MSMEs across the bloc were discussed.
India does not favour creation of a common BRICS currency, according to Minister of Commerce and Industry Piyush Goyal, who reiterated the country’s preference for trade settlements in national currencies over a unified monetary system as a two-day meeting of BRICS trade and industry ministers concluded in Jaipur on 7 August. “We do not support the introduction of any such BRICS currency scheme; India opposes it,” Goyal was quoted as telling reporters by a domestic media outlet. Originally consisting of Brazil, Russia, India, China and South Africa (BRICS), the bloc has now expanded to 11 nations, bringing Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) into the fold.
BRICS member states—especially Russia and China—have in the past aggressively pushed for a joint currency to bypass Western financial dominance and mitigate sanction risks. New Delhi has always called for internationalising the Indian rupee and conducting bilateral trade using local currencies. Goyal said discussions at the meeting centered on promoting balanced trade, boosting cross-border investment and ensuring access to affordable financing for micro, small and medium enterprises (MSMEs) across the expanded bloc. Ministers at the meeting issued the Jaipur Consensus to study a BRICS Invoice Discounting Mechanism and adopted the guiding principles for Credit Assessment Frameworks for Export-Oriented MSMEs so that a firm is judged by its cash flow and not by its assets and collateral, a release from the Indian ministry of Commerce and Industry said. Another outcome was the progress towards finalisation of the Strategy for BRICS Economic Partnership 2030, spanning the Multilateral Trading System, trade in services, the digital economy, industry, innovation and technology, trade and investment, financial cooperation and sustainable development. Ministers agreed to submit the Strategy, together with the priorities to the BRICS Leaders for endorsement.
India's cotton sowing reaches 103.54 lakh hectares, down 2.4% YoY
Mon. 10th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India's cotton sowing reached 103.54 lakh hectares by July 31, down 2.4 per cent from the year-earlier period and below the five-year normal area. Maharashtra, Rajasthan, Haryana, Punjab, and Karnataka led the decline, while Telangana and Andhra Pradesh partly offset the fall. Sowing remains underway, with weather, irrigation and crop choices influencing acreage.
Cotton sowing in India reached 103.54 lakh hectares as of July 31, 2026, down 2.52 lakh hectares, or about 2.4 per cent, from 106.06 lakh hectares during the corresponding period last year, according to the latest weekly kharif sowing data from the Ministry of Agriculture and Farmers Welfare. State-wise data show that the decline was led by Maharashtra, Rajasthan, Haryana, and Karnataka, while increased planting in Telangana and Andhra Pradesh provided a significant offset.
The current acreage is also below India’s five-year normal cotton area of 125.51 lakh hectares, based on the average for 2020-21 to 2024-25. However, the area could rise further as sowing activities are still underway. India’s final cotton area in 2025 stood at 115.20 lakh hectares, considerably higher than the 106.06 lakh hectares reported at the comparable stage last year. Among the states, Maharashtra recorded the largest year-on-year reduction of 1.22 lakh hectares. Cotton cultivation in large parts of the state is rain-fed, making the timing and distribution of monsoon rainfall important for planting decisions. The northern cotton-growing states also contributed substantially to the national decline. Cotton acreage was lower by 0.95 lakh hectares in Rajasthan, 0.90 lakh hectares in Haryana and 0.43 lakh hectares in Punjab. Together, the three states recorded a decline of 2.28 lakh hectares from the corresponding period last year. Weather conditions, irrigation availability, and competition from alternative kharif crops remain important factors influencing acreage decisions in the region. Karnataka recorded another sizeable reduction of 0.82 lakh hectares, while Gujarat’s cotton area was lower by 0.16 lakh hectares. The relatively small decline in Gujarat contrasts with the sharper reductions seen in Maharashtra and parts of the northern cotton belt. Southern India provided the major offset. Telangana’s cotton acreage increased by 1.34 lakh hectares, exceeding Maharashtra’s 1.22-lakh-hectare decline. Andhra Pradesh added another 0.38 lakh hectares compared with the corresponding period last year. The six states reporting lower acreage, Maharashtra, Rajasthan, Haryana, Gujarat, Karnataka, and Punjab, together recorded a decline of 4.48 lakh hectares. This was partly offset by a combined increase of 1.72 lakh hectares in Telangana and Andhra Pradesh. The remaining cotton-growing states together contributed a small net increase, resulting in the all-India decline of 2.52 lakh hectares. With cotton sowing at 103.54 lakh hectares by July 31, the year-on-year acreage gap remains relatively modest at around 2.4 per cent. However, the geographical composition of the decline warrants attention, particularly the lower planting in Maharashtra and the northern cotton belt.
Birla Cellulose brings sustainable fibres to India's handloom sector
Mon. 10th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Birla Cellulose is helping India's handloom clusters adopt Livaeco viscose, modal and lyocell fibres to combine traditional craftsmanship with comfort and sustainability. The initiative has trained around 7,000 weavers, added over 80 partners and supports annual consumption of nearly 3,500 tonnes of fibre and yarn across the handloom ecosystem.
As India's handloom sector balances the demands of tradition and market relevance, innovation is increasingly becoming a critical enabler of growth. Birla Cellulose is contributing to this transition by helping handloom clusters integrate sustainable cellulosic fibres such as Livaeco Viscose, Livaeco Modal and Livaeco Lyocell into their product offerings, allowing weavers to create fabrics that retain their artisanal appeal while responding to changing consumer expectations around comfort, affordability and sustainability. The effort is helping strengthen domestic textile value chains while opening new avenues for value creation across weaving communities.
Traditionally, handloom weaving in India has relied on cotton and silk yarns. However, the constant fluctuations in price and supply, compounded by changing consumer buying patterns require a stable supply of high-quality input materials. Birla Cellulose seeks to address this gap by enabling the use of high-performance MMCF fibres namely viscose, modal and lyocell fibres. These fibres blended with the traditional fibres or even as standalone products help in crafting fabrics that retain the richness of handloom while delivering enhanced softness, drape, comfort and sustainability. The initiative goes beyond fibre adoption. It is built on a partnership-driven model that focuses on creating long-term value for the weaving community. Birla Cellulose has undertaken extensive yarn seeding programmes, provided technical support for dyeing and product development, facilitated product testing, and established supply mechanisms to ensure access to small quantities of yarn. Additional interventions, including cone-to-hank conversion facilities, have helped simplify adoption at the weaver level. Assam emerged as the first pilot hub for the project, establishing a framework that is now being replicated across the country. The programme has expanded into Odisha, West Bengal, Gujarat, Madhya Pradesh and Uttar Pradesh, working alongside organisations such as ARTFED, KHAMIR, the Kutch Weavers Association and various state-supported handloom societies. From Silk x Livaeco Modal chanderi fabrics in Madhya Pradesh to banarasi blends with Livaeco Modal and Livaeco Lyocell in Varanasi, the initiative is accelerating product innovation rooted in regional craftsmanship.
Strengthening this effort further, Birla Cellulose has entered into a strategic collaboration with the State Agency for Development of Handloom Cluster (SADHAC), Odisha, through a Memorandum of Understanding (MoU) focused on developing innovative handloom fabrics using Livaeco Lyocell. The partnership aims to create a new generation of premium handloom textiles by blending Lyocell fibre with traditional handloom yarns, enabling artisans in Odisha and beyond to retain the authenticity and aesthetics of regional weaving traditions while introducing enhanced comfort, versatility and sustainability. By combining fibre innovation with centuries-old craftsmanship, the initiative seeks to make handloom products more relevant to the changing preferences of modern consumers.
The collaboration is designed to unlock new design, product development and market opportunities for handloom clusters across Odisha, while strengthening the value proposition of handcrafted textiles. Formalised in the presence of Guha Poonam Tapas Kumar, IAS, Commissioner-cum-Secretary to Government, Handlooms, Textiles and Handicrafts Department, Government of Odisha, the partnership reflects a shared commitment to advancing Odisha's handloom sector through sustainable fibre innovation. Through the integration of sustainable fibre technology, SADHAC and Birla Cellulose aim to promote environmentally responsible fabrics that appeal to consumers seeking products that balance cultural heritage with contemporary lifestyles. The partnership reflects a shared vision of revitalising India's handloom sector by preserving Odisha's rich weaving heritage and textile traditions while equipping artisan communities to compete in future-ready domestic and global markets. Reflecting on the initiative, Manmohan Singh, chief marketing officer, Birla Cellulose, says, "Our partnerships represent a sustainable & high growth opportunity for small scale enterprises. By combining traditional weaving excellence with fibre innovation, weavers are able to harness the innovate faster, diversify offerings & are able to cater to the changing consumer preferences with greater agility.” The scale of engagement achieved over the past year highlights the momentum building across these clusters. More than 150 micro-meets and hub engagements have been conducted across states including Assam, Meghalaya, Mizoram, Gujarat, Odisha, Tamil Nadu and Uttar Pradesh. The programme has added over 80 partners, trained approximately 7,000 weavers, and expanded its footprint across multiple weaving districts and production centres. Today, nearly 3,500 tonnes of fibre and yarn are being consumed annually within the handloom ecosystem through these efforts. For Birla Cellulose, the initiative represents a broader effort to strengthen India's handloom ecosystem by creating opportunities for artisans while introducing fibres that align with evolving market expectations. As an India first brand, Birla Cellulose is nurturing domestic textile value chains by bringing together innovation and tradition. The result is not a reinvention of handloom, but a thoughtful evolution of it, ensuring that India's weaving heritage remains relevant, competitive and accessible for generations to come.
What drove India's PDS revenue up 15% in Q1 FY27?
Mon. 10th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: PDS Limited has reported a strong Q1 FY27, with revenue rising 14.8 per cent YoY to ₹3,444 crore ($344.4 million) and PAT increasing 42.7 per cent to ₹29 crore ( $2.9 million). GMV grew 11.1 per cent to ₹5,146 crore ($514.6 million), while EBITDA surged 90.2 per cent to ₹96 crore ($9.6 million). The order book increased 23 per cent YoY to ₹6,095 crore ($9.6 million).
Indian supply chain solutions company PDS Limited has reported a 14.8 per cent year-on-year (YoY) increase in revenue from operations to ₹3,444 crore ($344.4 million) in the first quarter (Q1) of fiscal 2026-27 (FY27). The company’s gross merchandise value (GMV) increased 11.1 per cent YoY to ₹5,146 crore ($514.6 million) during the quarter. “The year has begun with encouraging momentum, with broad-based growth across our platform reflected in higher GMV, revenue growth and a healthy order book that provides strong visibility for the quarters ahead,” said Pallak Seth, executive vice chairman of PDS. Seth added that the company continued to strengthen its strategic positioning through customer wins and partnerships while expanding the scale and resilience of its global manufacturing network. The company recorded a sharp improvement in operating profitability, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising 90.2 per cent YoY to ₹96 crore ($9.6 million) from ₹51 crore. EBITDA margin expanded by 111 basis points (bps) to 2.8 per cent from 1.7 per cent. Profit after tax (PAT) increased 42.7 per cent YoY to ₹29 crore ($2.9 million), compared with ₹20 crore in the year-ago quarter, PDS said in a press release. The company’s order book grew 23 per cent YoY to ₹6,095 crore ($9.6 million), providing visibility for business in the coming quarters. Its gross margin also expanded by 63 bps during the quarter. The company has also embarked on a digital and artificial intelligence (AI) transformation aimed at improving productivity, capital efficiency and operating leverage. “The quarter marks another important step in strengthening PDS' financial foundation. Disciplined cash management and tighter working capital controls enabled us to improve net working capital to one day and reduce net debt by 73 per cent, significantly strengthening our balance sheet,” said Sanjay Jain, group CEO. Jain said the company was continuing to move its new investments towards profitability while progressing with portfolio rationalisation.
Heavy Rains Damage 2.75 Lakh Hectares
Mon. 10th Aug 2026, by yash chouhan (Source: https://www.smartinfoindia.com)
Heavy Rains in Maharashtra Affect Crops Across 2.75 Lakh Hectares
Pune: Farmers in Maharashtra have suffered significant losses due to continuous heavy rainfall. According to preliminary reports from the State Agriculture Department, crops across approximately 2.75 lakh hectares of agricultural land have been affected so far. This figure includes about 75,000 hectares impacted in just the last few days. The extent of the damage could rise further as the rains continue. The Agriculture Department reports that the Vidarbha and North Maharashtra regions have sustained the most damage. Crops such as cotton, soybean, maize, moong (green gram), urad (black gram), arhar (pigeon pea), bajra (pearl millet), jowar (sorghum), vegetables, sugarcane, bananas, papayas, and lemons have been affected. Among the districts, Amravati is the worst-hit, with reports of crop damage spanning over 71,909 hectares. Jalgaon has seen damage across more than 50,000 hectares, while Yavatmal has reported damage to over 25,803 hectares. State Agriculture Commissioner Suraj Mandhare stated that damage reports are still coming in from various villages; consequently, the total affected area could increase. The Agriculture Department is currently assessing the crop damage in the affected villages. The Konkan region has also been impacted by heavy rains. In Raigad, over 2,000 hectares of paddy nurseries have suffered damage. This situation may force farmers to prepare nurseries again and could delay paddy transplantation. Farmers note that the impact of the damage may persist even after the rain stops. Prolonged waterlogging in fields can damage plant roots and increase the risk of crop diseases. Agricultural experts have advised farmers to drain excess water from their fields and monitor crops for signs of disease. The actual extent of the damage caused by the rains will only be known once a detailed survey is completed.
