Cotlook Index: 13-08-2026
94.95 ( UC)
Cotton Rally May Lose Momentum
Thu. 13th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Will the rally in cotton prices stall? Atul Ganatra outlines the market outlook
In a recent interview with CNBC Awaaz, Mr. Atul Ganatra (CMD, Radha Lakshmi Group) shared key insights regarding the potential direction of the cotton market. He noted that ICE Cotton Futures, which stood at 80–81 cents about ten days ago, have risen to 84–85 cents. During the same period, Indian cotton prices also increased from ₹65,000 to approximately ₹68,000 per candy. At current rates, the cost of cotton for spinning mills in South India—including delivery charges—works out to around ₹71,000 per candy. Based on this cost, the manufacturing expense for 30s count yarn comes to approximately ₹310–320 per kilogram, whereas mills in Gujarat are selling the same yarn for around ₹295 per kilogram. Consequently, mills purchasing cotton at these high prices could face a loss of ₹15–20 per kilogram. For this reason, the ongoing rally in cotton prices appears likely to pause. Furthermore, spinning mills are holding record levels of cotton stock this year, with an inventory sufficient for about 150 days. New buying by mills is also expected to remain limited at these elevated price levels. Mills reportedly held a stock of approximately 85 lakh bales as of July 31. Additionally, the CCI holds 25–26 lakh bales, while traders hold around 25 lakh bales. There is also a possibility of importing about 10 lakh bales. Considering the arrivals of both old and new cotton, stocks are expected to remain adequate by the end of the season. Ultimately, the direction of the Indian cotton market will depend largely on ICE Cotton Futures, and the domestic market is likely to track the movement of ICE Cotton.
US tariff update keeps pressure on apparel, cotton sourcing costs
Fri. 14th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: US tariff updates on July 24 leave many locations facing 10 or 12.5 percentage-point additions over MFN rates, adding 10 to 12.5 per cent of customs value to sourcing costs.Apparel spending rose 1.1 per cent month on month in June and 4.5 per cent year on year. Higher inflation, energy costs and weaker labour data may pressure demand planning.
The recent US tariff update under Sections 301, as amended, has kept landed-cost pressure on apparel and cotton supply chains, with many sourcing locations now facing additional duties above most- favoured nation (MFN) rates and cotton-dominant apparel import costs remaining above pre-pandemic levels, according to the Cotton Incorporated.Before the latest change, many locations were subject to tariffs that were ten percentage points higher than the MFN or base rates in effect before 2025. With the new update, many locations now face additions of 10 or 12.5 percentage points on top of MFN rates. Tariffs are currently adding 10 to 12.5 per cent of customs value to sourcing costs. Cotton Incorporated said in its Executive Cotton Update release that a potentially significant revision in the latest tariff round was the change in legal justification. The latest set of tariffs was justified under Section 301 and replaced tariffs enacted under Section 122. The Section 122 tariffs were put in place in February after the Supreme Court revoked duties under the International Emergency Economic Powers Act (IEEPA). Section 122 action includes a 150-day time limit before requiring congressional approval, and those tariffs were due to expire when the Section 301 tariffs were implemented, added the release. Section 301 has previously been used to justify tariff increases, notably on imports of goods from China in 2018 and 2019. Those tariffs have endured administrative reviews and legal challenges, but court cases have already been launched against the legality of the latest Section 301 tariffs.
Alongside tariffs, higher energy costs linked to renewed hostilities around the Persian Gulf can contribute to inflation. Cotton Incorporated said inflation has exceeded wage growth since April, which could eventually weigh on consumer spending. Rising inflation also complicates Federal Reserve decision-making as it balances efforts to slow inflation with support for the labour market. The US economy is estimated to have lost 23,000 jobs in July, the first monthly decline in payrolls since February 2026, when payrolls fell by 156,000. There were also five months with net job reductions in 2025: January, June, August, October and December. Excluding February and July, the year-to-date average for 2026 was an increase of 121,000 jobs; including those two loss-making months, the average monthly change was an increase of 61,000. In 2025, the average monthly change was an increase of 10,000. Despite the July job losses, the unemployment rate fell from 4.2 per cent to 4.1 per cent. Cotton Incorporated noted that the unemployment rate is the ratio of unemployed people to the labour force. Since November, the number of people wanting to work has decreased, with the labour force down by nearly 2.5 million from a recent peak of 171.5 million in November to 169.1 million. That reduction has helped keep the unemployment rate lower. Wage growth was 3.5 per cent in July, similar to the previous three months but below many rates recorded since 2020. With income growth slowing and inflation accelerating, wage growth slipped below overall inflation in April, creating a potential challenge for consumer spending. The Conference Board’s Consumer Confidence Index decreased by 1.4 points to 90.8 in July, within the 90-100 range that has contained readings over the past twelve months, with recent values concentrated at the lower end. Inflation-adjusted overall consumer spending rose 0.4 per cent month on month in June and 2.5 per cent year on year. Inflation-adjusted spending on garments increased 1.1 per cent month on month for the second consecutive month in June, while year-on-year apparel spending was 4.5 per cent higher, nearly twice the long-term average. After ten consecutive month-on-month increases, the consumer price index for apparel decreased in June. However, recent apparel price levels remain the highest since the late 1990s in nominal terms and about five per cent above a year earlier. The average cost per square metre equivalent (SME) of cotton-dominant apparel increased marginally from $3.69 per SME in May to $3.71 per SME in June on a seasonally adjusted basis. Seasonally adjusted prices have been relatively stable around $3.70 per SME since late 2023, about 12 per cent higher than the roughly $3.30 per SME costs common before the pandemic.
Egypt, India discuss local-currency trade payment, fintech cooperation
Fri. 14th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Indian Finance Minister Nirmala Sitharaman recently met her Egyptian counterpart Ahmed Kouchouk on the sidelines of a BRICS meeting in Jaipur and discussed structured cooperation in financial technology and innovation and settlement of bilateral trade in local currencies. Both discussed a greater role for the New Development Bank in project development and private capital mobilisation.
Indian Finance Minister Nirmala Sitharaman recently met her Egyptian counterpart Ahmed Kouchouk on the sidelines of the BRICS Finance Ministers and Central Bank Governors meeting in Jaipur and discussed structured cooperation in financial technology and innovation and settlement of bilateral trade in local currencies. Both also discussed the use of emerging technologies in finance, including artificial intelligence for risk assessment and fraud detection, the Indian Finance Ministry said in a post on microblogging platform X. The two sides discussed a greater role for the New Development Bank (NDB) in project development and private capital mobilisation. Sitharaman said India sees “considerable scope for closer cooperation with Egypt”, particularly in strengthening the NDB’s role in project development and private capital mobilisation, the ministry said. The ministers also discussed sharing experiences on public-private partnerships and risk-mitigation mechanisms, potentially opening another area of cooperation between the two countries. Focus on start-ups, micro, small and medium enterprises and youth and entrepreneurship also featured in the discussions.
ICE cotton lowers on profit booking, loss of momentum
Fri. 14th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: ICE cotton's December 2026 contract settled at 83.50 cents, down 0.88 cent or 1.04 per cent, after failing to hold above the 85-cent resistance zone.
USDA weekly export sales totalled 130,026 bales, offering moderate demand-side support despite the futures correction. Weather risks in West Texas, the US cotton belt, Xinjiang and India, tight ICE stocks and China reserve auctions remain supports.
ICE cotton futures lowered yesterday due to profit booking and loss of short-term momentum. US weekly exports sales report provided a moderate demand-side support to cotton despite the future correction. External markets noticed mixed trend as US equities reached fresh highs but grains, energy and metals were generally weaker. The most active December 2026 contract settled at 83.50 cents down 0.88 cent or 1.04 per cent. The contract marked the third lower close in the last four session and a net decline of 90 points over that four-session period. December is now 75 points below the week's 85.25 cent high, where the market failed to sustain a breakout above the important 85 cent resistance zone. The entire cotton board closed lower, with active contracts declining 37 to 90 points, making this the weakest session in nearly a month. Trading volume increased to 56,288 contracts, compared with 55,196 contracts Wednesday, confirming that participation increased as prices moved lower. The latest USDA Weekly Export Sales Report for the week ended August 6 showed total net sales of 130,026 bales, consisting of 127,315 Upland and 2,711 Pima. The export report provides a moderate demand-side support to cotton despite the futures correction, especially when combined with the previous day's WASDE showing sharply tighter global ending stocks. Weather remains a significant supply-side risk, particularly in West Texas, the wider US cotton belt, Xinjiang and India. Persistent heat and dryness continue to threaten yield potential during the critical boll-development period.
ICE Certified Stocks remain extremely tight after falling to 80,741 bales on August 11, compared with 82,513 bales previously, keeping nearby deliverable supply supportive even as futures correct. China's State Reserve programme also continues to provide an important demand floor. The latest available auction data showed 17 consecutive 100 per cent sell outs, with cumulative purchases reaching approximately 136,298 tonnes. Lower crude oil prices remain a headwind because cheaper energy reduces the production cost of polyester and other synthetic fibres, potentially weakening cotton's price advantage. Overall, cotton suffered its sharpest decline in nearly a month, driven mainly by profit-taking and fading momentum after the failed 85 cents breakout. This morning (Indian Standard Time), ICE cotton for December 2026 was traded at 83.71 cents per pound (up 0.21 cent), cash cotton at 78.61 cents (down 0.85 cent), the October 2026 at 82.33 cents (up 0.03 cent), the March 2027 contract at 85.71 cents (up 0.29 cent), the May 2027 contract at 86.84 cents (up 0.20 cent), and the July 2027 contract at 86.41 cents (up 0.22 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Union Minister of Textiles to inaugurate Handloom Haat: The Handloom Experience Centre at Janpath on 14 August
Thu. 13th Aug 2026, (Source: www.pib.gov.in)
Union Minister of Textiles Shri Giriraj Singh will inaugurate Handloom Haat: The Handloom Experience Centre at Janpath, New Delhi, on 14 August 2026, marking a significant step towards creating a distinctive public destination for experiencing, understanding and engaging with India’s rich handloom heritage. The re-envisioned Handloom Haat will bring together heritage, knowledge, contemporary design, enterprise and retail under one roof. The Handloom Experience Centre has been envisioned as a showcase of India’s handloom ecosystem, where traditional knowledge is not only preserved and interpreted, but actively practised, experienced and taken forward. Visitors will be able to explore the materials, processes, techniques and stories behind handwoven textiles, encounter contemporary expressions of handloom and discover products from weavers and handloom brands.
From Heritage to Contemporary Design
The inaugural showcase will feature 24 award-winning weavers through an exhibition organised by the National Handloom Development Corporation (NHDC), alongside 30+ curated brands participating through Weave The Future 5.0.
The fifth edition of ‘Weave The Future’ showcased in the ground and first floor will bring together weavers, designers, brands, researchers and other stakeholders to advance sustainable, circular and craft-led approaches to textiles. Its showcase at Handloom Haat will feature contemporary products developed through handloom and regenerative materials, with a focus on indigenous fibres, material innovation and responsible textile practices. It will also feature installations exploring India’s indigenous fibre landscape and the relationship between geography, agriculture, ecology and textile production.
The retail experience at Handloom Haat will therefore extend beyond conventional shopping, offering visitors an opportunity to discover the diversity, quality and contemporary relevance of Indian handlooms while creating greater visibility and market access for weavers and handloom enterprises.
A Multi-Layered Handloom Experience
The inauguration will offer guests a curated journey across the three floors of Handloom Haat, highlighting different dimensions of India’s handloom ecosystem.
As part of the inaugural experience, a temporary exhibition, on the ground floor, titled “Reimagining Odisha Weaves — Cloth | Craft | Creativity | Community” by Vriksh Designs will showcase how contemporary design can revitalise regional textile traditions through collaboration between designers and master weavers. The exhibition will highlight the revival of lesser-known and forgotten Odisha traditions such as Ganjam Bomkai and Dhalapathar Tapestry, alongside innovations in Ikat, Jaala and Phoda weaving, natural dyes, new colourways, textures, motifs and product forms.
The first floor will centre on the Visvakarma Gallery, a permanent gallery, bringing together rare textiles from the landmark Visvakarma exhibition series (1981–1991), which brought together weavers, designers, scholars and cultural patrons in an exploration of India’s diverse handloom traditions. Produced through Weavers’ Service Centres in close collaboration with weaving communities, these textiles demonstrate the coming together of technical skill, creative imagination and contemporary inquiry in Post-independent India. This gallery will also pay a tribute to Sant Kabir awardees and Padma Shri awardees, recognising individual practitioners whose exceptional contributions have expanded the practice, understanding and visibility of Indian handlooms.
The second floor will feature Design Conclave and an immersive experience that will take visitors on a visual and sensory journey inspired by India’s forests and the rich repertoire of animal, bird, floral and natural motifs found across diverse handloom traditions.
A New Destination for Handloom Excellence, Experience and Enterprise
The re-envisioned Handloom Haat aims to strengthen the visibility and market presence of Indian handlooms while creating opportunities for weavers, designers and handloom enterprises. By bringing together heritage, contemporary practice, retail and public engagement, it seeks to create a closer connection between India’s handloom communities and contemporary audiences.
With its integrated approach to Handloom Excellence, Experience and Enterprise, Handloom Haat at Janpath is envisioned as a prominent destination where visitors can encounter the many dimensions of India’s handloom traditions- from the people and processes behind the cloth to its contemporary possibilities.
The inauguration on 14 August 2026 will mark the beginning of this new chapter for Handloom Haat, envisioned as “The Handloom Experience Centre”, a space where India’s living textile heritage can be seen, understood, experienced and taken forward.
Shri Shivraj Singh Chouhan Launches CBDC-Based DBT in Chandigarh, Paving the Way for Greater Transparency in PDS
Fri. 14th Aug 2026, (Source: www.pib.gov.in)
Union Minister for Agriculture and Farmers’ Welfare and Rural Development Shri Shivraj Singh Chouhan today launched a Central Bank Digital Currency (CBDC)-based Direct Benefit Transfer (DBT) system at an event held at Tagore Theatre in Chandigarh, chaired by Punjab Governor Shri Gulab Chand Kataria. Union Minister for Education, Consumer Affairs, Food and Public Distribution, and New and Renewable Energy Shri Pralhad Joshi and Union Minister of State for Food and Public Distribution Smt. Nimuben Jayantibhai Bambhaniya attended the event as special guests. Shri Chouhan said the initiative marks an important step towards bringing greater transparency, security and timeliness to the Public Distribution System (PDS). He said that under the leadership and guidance of Prime Minister Shri Narendra Modi, there will be no compromise on the interests of farmers and the poor.
A New System for Transparency and Trust
Shri Singh Chouhan said the CBDC-based DBT system will enable payments for ration and foodgrains to reach beneficiaries directly, securely and transparently. The pilot launched in Chandigarh is intended to serve as a model for adoption across the country. Under the new system, technological safeguards have been incorporated to ensure that beneficiaries can use the funds only for purchasing foodgrains and other essential food items, preventing the money from being diverted for other purposes. At the same time, beneficiaries will have greater choice. In addition to wheat and rice, they will be able to opt for pulses or other essential food commodities. Shri Chouhan praised the departmental team and officials for developing the system and described the initiative as a major technological innovation.
Commitment to Farmers’ Interests
Shri Chouhan made it clear that there would be no compromise on farmers’ interests in matters relating to agricultural policy and food security. He said that all agreements entered into with countries across the world concerning farmers have been guided by the principle that national interest, farmers’ interests and public interest remain paramount. “Sadly, the Opposition has a problem even with this,” he said. Referring to the country’s strong stocks of wheat and rice, Shri Chouhan said India is now capable of meeting its domestic requirements and exporting when necessary. He said that under the Prime Minister’s leadership, the transparent delivery of PM-KISAN Samman Nidhi and other benefits will continue, with the protection and welfare of farmers remaining the government’s highest priority.
Strong Remarks on Disruptions in ParliamentAt the event, Shri Chouhan also strongly criticised disruptions in Parliament and the conduct of the Opposition, stressing that the dignity of democracy must be upheld. He said such disruptions amount to an insult to the Constitution and the democratic process, and that necessary decisions will be taken in the national interest. Shri Chouhan emphasised that debate is essential in a democracy, but disruption is unacceptable.
PM Garib Kalyan Anna Yojana and Social Security
Union Minister Shri Chouhan praised the Pradhan Mantri Garib Kalyan Anna Yojana, saying that providing free foodgrains to more than 800 million people represents one of the country’s major social security measures. He said the scheme is not merely about ensuring that people have enough food to eat. It also strengthens the economic position of families by reducing their household expenditure, allowing them to use their savings for children’s education and other essential needs. Shri Chouhan said the government’s objective is to ensure that no poor person goes hungry and that there is no shortage of food on any household’s plate.
Benefits of DBT and New Technological Safeguards
Shri Shivraj Singh Chouhan said DBT has ensured that benefits reach account holders directly, thereby reducing the scope for intermediaries and irregularities. At the same time, he acknowledged that once money is transferred in cash, there can be a risk of it being used for purposes other than those intended. This is why the CBDC-based system has been designed with technological safeguards that ensure the benefit is spent directly on ration and other food items, thereby preventing misuse. He once again commended the department for developing this technological innovation.
Chandigarh to Serve as a Model City
Highlighting Chandigarh’s distinctive character and civic consciousness, Shri Chouhan said the experiment launched in the city would, if successful, be gradually expanded across the country. He urged officials to address local challenges and ensure the expansion of the system so that its benefits reach every family. Praising Chandigarh, Shri Chouhan said the city reflects a strong sense of discipline, cleanliness and civic responsibility.
Emotional Appeal
Paying tribute to the freedom fighters, Union Minister Shri Chouhan said citizens should pledge to live for the nation and sincerely discharge their civic duties. He appealed to citizens to participate in the “Har Ghar Tiranga” campaign and said the best way to realise the dreams of the martyrs is to work honestly and contribute to the country’s development. Shri Chouhan also appealed to citizens to undertake activities in the interest of the environment, including planting trees.
Government Must Be Visible in People’s Lives
Shri Shivraj Singh Chouhan reiterated Prime Minister Shri Narendra Modi’s resolve that “the government should not merely be visible in files, but in the lives of the people.” He said the Chandigarh programme is a reflection of this approach, where technology and government policies are being used to bring tangible improvements to the everyday lives of ordinary citizens. Shri Chouhan said that under the leadership of Prime Minister Shri Narendra Modi, the government is making every possible effort to serve the people and will achieve even greater goals in the days ahead. These include the “Lakhpati Didi” target, under which the government has resolved to make 60 million rural women financially prosperous by 2029.
Focus on MMF to boost textile exports
Fri. 14th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Focus on MMF Essential to Boost Textile Exports: NITI Aayog
According to a joint report by NITI Aayog and CRISIL Intelligence, India needs to place greater emphasis on man-made fiber (MMF)-based products to achieve its textile export target of US$100 billion by FY30. Additionally, there is a need for large-scale manufacturing, improved access to global markets, and increased investment in technology and innovation.
The textile sector is one of India's key manufacturing sectors. It contributes approximately 2% to the country's GDP, 11% to manufacturing Gross Value Added (GVA), and nearly 9% to merchandise exports. It employs over 45 million people. In FY25, India exported textile products worth approximately US$37.7 billion, securing the sixth position globally with a 4.1% share of global textile and apparel exports. According to the report, the global textile market could reach *US$1.78–1.83 trillion* by 2027. Factors such as fast fashion, e-commerce, urbanization, and rising disposable income are expected to drive market growth. The growing demand for sustainable, wrinkle-resistant, quick-drying, and performance-based products is also likely to boost MMF consumption. NITI Aayog notes that India's cotton-centric strategy is becoming a challenge, as global demand is rapidly shifting towards synthetic fibers. Cotton yarn production fell from 3,962 million kg in FY20 to 3,438 million kg in FY23. In contrast, the production of man-made filament yarn and blended/non-cotton yarn rose to 3,650 million kg. Raw material costs and import dependency pose significant challenges for the MMF sector. India meets approximately 75% of the demand for PTA and about 65% of the demand for MEG through domestic production. The report suggests reducing the GST on PTA and MEG, as well as lowering or eliminating the 5% customs duty on MEG. PTA capacity is expected to increase by approximately 5.5 million tonnes annually over the next 2–3 years; this could boost domestic feedstock availability and enhance the competitiveness of the MMF sector.
