Cotlook Index: 14-08-2026
94.05 (-0.90)
Textiles, chemicals can fuel India's aim to be manufacturing hub: Govt
Sat. 15th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: India's textile industry can strengthen its global competitiveness by improving raw material availability, scaling up manufacturing through infrastructure support and expanding market access through deeper trade integration, a NITI Aayog report said. The chemicals sector also has the potential to enhance domestic value addition by expanding downstream production and improving feedstock utilisation.
India’s textile industry has the potential to strengthen its global competitiveness by improving raw material availability, scaling up manufacturing through infrastructure support and expanding market access through deeper trade integration, according to a latest NITI Aayog report. Enhancing skilling, technology adoption and productivity, while promoting technical textiles, MMF-based products, sustainable textiles and premium Indian weaves, can further drive value addition and global growth, the report, titled Key Sectors to Position India as a Global Manufacturing Hub, noted. It identifies major sectors that can fuel India’s ambition to become global manufacturing powerhouse. The four sectors are chemicals, textiles, telecom & networking equipment and solar photovoltaics (PV). The country’s chemicals industry has significant potential to enhance domestic value addition by expanding downstream production and improving feedstock utilisation, the report remarked. Promoting domestic manufacturing, investments in competitiveness and strategic use of free trade agreements can help reduce import dependence, strengthen downstream capabilities and support sustainable industry growth in the chemicals sector, a release from the government think tank said citing the report. The domestic chemicals industry is broadly led by three key consumption segments: petrochemicals and organic chemicals, specialty chemicals, and inorganic chemicals. Petrochemicals and organic chemicals form the largest segment and include polymers, synthetic fibres, performance plastics, building blocks, intermediates and end-products. India had installed 106 GW of solar capacity by March 2025 and needs to add about 174 GW to meet the 2030 target of 280 GW solar capacity, the report said.
The domestic PV market, estimated at $3.7 billion, is expected to grow at a 17-20-per cent compounded annual growth rate between fiscal 2022-23 and fiscal 2029-30, supported by utility-scale solar, rooftop solar, open-access projects and green hydrogen-linked demand. India’s solar manufacturing ecosystem has strong potential to deepen domestic value addition by strengthening upstream capabilities and reducing import dependence, the report observed.
Key priorities include technology partnerships and joint ventures, greater research and development and performance-linked support, development of integrated clean-tech clusters, and industry-led skilling. Strengthening trade partnerships and G2G frameworks can also expand export opportunities and secure global market access in the PV sector, the report added.
Weak Monsoon Threatens Kharif Crops
Mon. 17th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Shifting Monsoon Patterns Threaten Kharif Crops
Concerns regarding this year's Kharif crop yields have mounted due to weakening Southwest monsoon activity and uneven rainfall distribution. Although the situation improved slightly after a rainfall deficit of nearly 40% in late June, the country's rainfall remained 12% below the Long Period Average (LPA) as of August 13. Crops such as soybean, maize, and paddy are currently at critical growth stages that directly influence final yields. Experts believe the next two weeks will be crucial for the crops. Data from the Ministry of Agriculture indicates that total Kharif sowing covered an area approximately 2% smaller than last year's. The acreage for paddy was down by 3.7%, arhar (pigeon pea) and maize by 4% each, cotton by 1%, and sugarcane by 0.5%. Final production will now largely depend on adequate moisture availability during August and September. The IMD has forecast below-normal rainfall for August and September. While rainfall may remain near normal between August 13 and 19, monsoon activity is likely to weaken during the August 20–26 period. A northward shift of the monsoon trough is considered a primary reason for this trend. As of August 13, the rainfall deficit in Central India was only 1%, whereas deficits of 11% in Northwest India, 20% in the Southern Peninsula, and 27% in East and Northeast India were recorded. Bihar faced a 39% deficit, while Eastern Uttar Pradesh and Punjab each recorded a 31% shortfall. Experts emphasize that for agriculture, factors beyond total rainfall—such as timing, distribution, and soil moisture—are equally critical. Yields can be adversely affected by moisture stress during key phases: flowering and pod formation in soybeans, panicle emergence in paddy, and flowering and grain filling in maize. Cotton crops are vulnerable to damage from both drought and waterlogging. Therefore, rainfall conditions in August and September will play a crucial role in determining the final yield of Kharif crops.
Daund Cotton Acreage Reaches 2,412 Acres
Mon. 17th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
Maharashtra: Cotton acreage rises in Daund; sowing covers 2,412 acres
In the Daund taluka of Maharashtra's Pune district, the area under cotton cultivation is expanding alongside traditional crops. Known for the cultivation of sugarcane, onions, wheat, and pomegranates, this region is seeing cotton emerge as a significant Kharif season crop. According to available data, cotton has been sown across 2,412 acres in Daund taluka this year. In the 2021-22 season, cotton was cultivated on only 255 acres in Daund taluka. Since then, the acreage has seen a steady increase. This growth is attributed to both the farmers' growing interest and the guidance provided by the Agriculture Department. In the Daund region, a spacing of 4.5×2 feet is typically maintained for cotton sowing. Subsequent cultivation practices involve weeding and the application of fertilizers and pesticides as required. The average cotton yield in the area is reported to be between 18 and 20 quintals per acre. Current data indicates that the Minimum Support Price (MSP) for high-quality cotton is ₹8,667 per quintal, an increase of ₹557 compared to the previous year. With a good harvest, farmers can earn between ₹1.50 lakh and ₹1.75 lakh per acre over a five-month period. It is claimed that planting sugarcane after a cotton crop leads to an average yield increase of 15 to 20 tonnes per acre for the sugarcane. This practice aids in optimal land utilization and helps maintain the crop rotation cycle. However, despite the increase in cotton acreage in Daund taluka, there is currently no authorized cotton procurement center. Farmers are demanding the establishment of a procurement center at the Daund APMC so that they do not have to travel to other regions to sell their produce. This year, the cotton crop is facing a significant weed infestation problem. In this context, farmers are being advised to focus on timely weeding and proper crop management. The region's fertile black soil and appropriate crop rotation can help boost cotton productivity.
CCI Raises Cotton Prices, Sales Cross 1.84 Lakh Bales
Fri. 14th Aug 2026, Yash Chouhan (Source: www.smartinfoindia.com)
CCI Raises Cotton Prices by ₹1,500-₹1,800 per Candy; Weekly Auction Sales Cross 1.84 Lakh Bales The Cotton Corporation of India (CCI) increased its cotton selling prices by ₹1,500–₹1,800 per candy during the week ending August 14, 2026, reflecting strong buying interest from textile mills and cotton traders. During the week, CCI sold approximately 1,84,600 bales of cotton from the 2025–26 crop, with robust participation across auctions despite a gradual decline in volumes toward the end of the week.
Day-Wise CCI Auction Performance
August 10, 2026 (Monday)
CCI opened the week on a strong note, recording the highest auction volume of the week with 80,700 bales sold. Textile mills purchased 40,800 bales, while traders lifted 39,900 bales.
August 11, 2026 (Tuesday)
Auction sales moderated to 54,300 bales. Mills purchased 24,300 bales, while traders bought 30,000 bales.
August 12, 2026 (Wednesday)
CCI sold 28,900 bales, with mills accounting for 14,000 bales and traders purchasing 14,900 bales.
August 13, 2026 (Thursday)
Auction sales remained at 28,900 bales. Mills purchased 15,600 bales, while traders lifted 13,300 bales.
August 14, 2026 (Friday)
The week's auctions concluded with sales of 3,400 bales, including 2,500 bales purchased by mills and 900 bales by traders.
Following the latest auctions, CCI's cumulative cotton sales for the 2025–26 season reached approximately 92,21,400 bales, underlining sustained demand from the domestic textile industry and cotton trade despite the recent increase in CCI selling prices.
US cotton export sales surge as new crop bookings accelerate: USDA
Fri. 14th Aug 2026, (Source: www.fibre2fashion.com/news)
US cotton export sales strengthened sharply during the week ended August 6, as new crop bookings for the 2026-27 marketing year, which began August 1, showed robust buying interest from major importing markets. According to the USDA Weekly Export Sales Report, Upland cotton sales were led by Vietnam, Pakistan, Bangladesh, Mexico and India, while export shipments also increased as the new marketing year got underway.
Insights: US Upland cotton net sales for 2026-27 totalled 905,000 RB, led by Vietnam, Pakistan, Bangladesh, Mexico and India. Upland shipments reached 140,500 RB in the opening days of the new marketing year, with Vietnam the largest destination. Pima net sales stood at 50,600 RB, led by India, while USDA data signalled firm new-season demand and early-season shipments.
Net sales of Upland cotton for the 2026-27 marketing year totalled 905,000 RB (running bales, each weighing 226.8 kg), with Vietnam the largest buyer at 222,500 RB, including switches and adjustments. Pakistan followed with 164,200 RB, Bangladesh with 81,100 RB, Mexico with 67,300 RB and India with 67,200 RB. In addition, 778,900 RB in sales were carried over from the 2025-26 marketing year, which ended July 31.Upland cotton export shipments for the period ended July 31 totalled 67,900 RB, bringing cumulative exports for the 2025-26 marketing year to 11.20 million RB, marginally above the previous year's 11.19 million RB. Vietnam was the largest destination during the period with 23,800 RB, followed by India at 15,800 RB, Pakistan at 11,500 RB, China at 4,400 RB and Turkiye at 3,500 RB.Shipments during the week, the opening days of the new marketing year, reached 140,500 RB. Vietnam again accounted for the largest volume at 60,800 RB, followed by Pakistan with 13,900 RB, China with 12,700 RB, India with 12,500 RB and Mexico with 10,800 RB.Pima cotton also recorded strong new crop demand. Net sales for the 2026-27 marketing year totalled 50,600 RB, led by India with 21,900 RB, followed by Colombia at 6,800 RB, Italy at 3,800 RB, Pakistan at 3,500 RB and Vietnam at 2,800 RB. A further 47,000 RB in sales were carried over from the 2025-26 marketing year.Pima export shipment stood at 1,200 RB, taking cumulative shipments for the previous marketing year to 448,600 RB, up about 3 per cent from 435,000 RB a year earlier. The latest shipments were mainly destined for Turkiye and Peru. During August 1-6, Pima exports totalled 6,000 RB, with India accounting for 3,700 RB, followed by Egypt at 1,100 RB, Colombia at 500 RB, Vietnam at 400 RB and Indonesia at 300 RB.
The latest USDA data pointed to a strong start to the 2026-27 marketing year, with substantial forward commitments for both Upland and Pima cotton. Strong buying from Vietnam, Pakistan and India, in particular, suggests that overseas mills and merchants continue to secure US supplies for the new season. The firm pace of new crop bookings, alongside early-season shipments, is likely to provide underlying support to US cotton market sentiment despite ongoing uncertainty over global demand and prices.
Bangladesh, Turkmenistan seek stronger trade, economic cooperation
Mon. 17th Aug 2026, (Source: www.fibre2fashion.com/news)
Insights: Bangladesh and Turkmenistan agreed in Ashgabat to deepen ties, with trade, investment and economic cooperation high on the agenda. Textile-sector scope centres on Bangladesh's ready-made garment strength and Turkmenistan's cotton-production base. Dhaka sought imports of jute and jute goods, while both sides plan a 2027-2029 action programme and more private-sector links.
Bangladesh and Turkmenistan have agreed to strengthen bilateral relations, with trade, investment and economic cooperation placed high on the agenda during political consultations held recently in Ashgabat. The two sides discussed and agreed to work on a tentative Program of Action: 2027-2029 to conclude bilateral instruments covering trade and economic cooperation, cultural cooperation, visa waiver for diplomatic and official passport holders, tourism promotion, avoidance of double taxation, promotion and protection of investments, cooperation in the fields of industries, and cooperation between foreign service academies, the Ministry of Foreign Affairs of Bangladesh (MoFA) said in a press release. For textile and apparel supply chains, the talks highlighted Bangladesh's global leadership in ready-made garments and Turkmenistan's reputation in cotton production as comparative advantages for collaboration and partnership in the sector. Bangladesh also requested Turkmenistan to import jute and jute products, ceramics, light engineering items and semi-conductors from Bangladesh. Ambassador Dr. M Nazrul Islam, secretary, bilateral (east and west), Ministry of Foreign Affairs of Bangladesh, and Ahmet Gurbanov, Deputy Minister of Foreign Affairs of Turkmenistan, led their respective delegations.
Both sides said there was large untapped potential and discussed the full range of bilateral cooperation between the two countries. They attached high priority to expanding and deepening relations, and emphasised increasing bilateral trade, investment and wider economic cooperation.
Turkmenistan, described in the release as the fifth-largest reservoir of natural gas in the world and a vast reservoir of oil, expressed interest in supporting Bangladesh's energy security. Under the tentative programme, Bangladesh and Turkmenistan also agreed to encourage more interaction between private sectors and chambers to realise the potential. Bangladesh invited investors from Turkmenistan to explore the investment-friendly climate in Special Economic Zones in Bangladesh. The delegations discussed the possibility of forming a Joint Working Group on Trade and Economic Cooperation. They also stressed further deepening political cohesion, proposed reciprocal high-level visits, and discussed exploring the formation of a Bangladesh-Turkmenistan Parliamentary Friendship Group to enhance regular interaction among parliamentarians. The meeting also covered employment opportunities for highly skilled and semi-skilled professional workers from Bangladesh in Turkmenistan. Bangladesh and Turkmenistan agreed to deepen coordination on regional and global issues and support each other across international platforms, including the United Nations (UN), Organisation of Islamic Cooperation (OIC) and Non-Aligned Movement (NAM). Bangladesh expressed gratitude to Turkmenistan for supporting Bangladesh's candidature for the Presidency of the 81st United Nations General Assembly.
India’s cheap-urea model faces an expensive reckoning
Fri. 14th Aug 2026, Pratik Parija and Sara Bapat, Bloomberg
(Source: www.economictimes.indiatimes.com)
Synopsis: India faces rising fertilizer costs, prompting a review of its subsidy system. Global supply chain issues and war have doubled procurement expenses for the nation. Farmers are urged to reduce excessive chemical fertilizer use for soil health. A new distribution system is being tested to manage nutrient sales. This situation risks impacting food inflation both domestically and abroad.
Soaring fertilizer bills are pushing India to reshape a decades-old subsidy system that helped transform a vulnerable food importer into one of the world’s agricultural heavyweights. The country’s farmers use more urea – a nitrogen-heavy crop nutrient – than the US and Brazil combined, buoyed by government support that keeps prices well below market rates. As the war in Iran upended global fertilizer and energy flows, the cost to procure it more than doubled and the cargoes of gas needed to produce its own grew more scarce. That has swelled an already hefty subsidy bill and added to a surge in foreign-exchange outflows that’s put the rupee among Asia’s worst-performing currencies this year. Fertilizer prices have eased as more workarounds are put in place, but the financial damage already done is sparking a government-led effort to rein in use, a sensitive issue in a country where farmers make up a crucial voting bloc. Officials have campaigned with growers nationwide to highlight the perils of excessive fertilizer on soil health and a new system is being tested that could change how the nutrients are sold longer-term. Even Prime Minister Narendra Modi has urged cutbacks. The country is in the middle of its biggest annual growing season, when fertilizer use peaks. Few farmers seem eager to change long-held practices, but with flows of Middle East nutrients and gas yet to normalize, cooperatives in some key states are taking steps to ration supply as the government seeks to rein in spending, according to people familiar with the matter. Combined with a lackluster monsoon, the situation risks cutting into India's harvest – potentially boosting food inflation at home and in the dozens of countries that rely on its rice and produce abroad. “If disruptions linked to the Strait of Hormuz persist, the key concern is not only fertilizer availability, but timely access during critical application windows,” said Laura Cross, director of market intelligence at the International Fertilizer Association. “Given India’s scale, this would have implications beyond the domestic market.” India’s urea subsidy followed the food crises of the 1960s, when the government embraced the Green Revolution to cut dependence on grain imports and avert famine. Cheap nitrogen fertilizer became critical to raising wheat and rice yields, prompting successive governments to cap urea prices and absorb the difference between market and retail costs. The policy helped turn India into a food-surplus nation – it is today the world’s No. 1 rice exporter – while protecting small farmers and containing food inflation. But it has also made the support politically difficult to dismantle, even as the cost climbs. India, one of the world’s largest urea buyers, paid nearly double pre-war prices for supplies in an April tender as flows through the Strait of Hormuz were choked off. In addition, the country has faced lofty costs for the natural gas imports – many of which also come from the Middle East – that serve as a crucial feedstock for domestic fertilizer production. The country’s fertilizer subsidy bill is likely to exceed 3 trillion rupees ($31 billion) in the current fiscal year, well above the budgeted 1.71 trillion rupees, according to a government official familiar with the matter. Farmers still pay just 266.5 rupees ($2.80) for a 45-kilogram bag of urea, less than a tenth of the price the government paid in an April tender to procure it. Other types of fertilizer are also subsidized, albeit to a lesser extent, adding to the allure of nitrogen. The spending on fertilizer subsidies is “money being used inefficiently, ineffectively,” said Avinash Kishore, a senior research fellow at the International Food Policy Research Institute. “It is baking in unhealthy, not environmentally friendly, unproductive practices in Indian agriculture.” That's kept demand resilient, relative to countries like Australia and France, where some farmers switched to less fertilizer-intensive crops to stave off this year’s price shock. In a May speech, Modi said it’s “essential” for the country to reduce consumption of chemical fertilizers, urging farmers to cut use by as much as half as part of an effort to curb dependence on major imported goods. By doing so, “we can save our Mother Earth,” he said. “We have to do it.” Sparking sustained change would require farmers to buck habits formed over decades. Plus, the average farm in India is less than a hectare (2.5 acres), a fraction of the size in countries like the US. Relying on such small plots to earn their annual income can make growers more hesitant to change prior practices and risk upsetting harvests. Government-backed procurement of wheat and rice, coupled with guaranteed purchases of sugar cane by mills, also discourages Indian farmers from shifting to less urea-reliant crops. “As long as there is nothing stipulating legally that they have to cut back, there’s very little reason for the farmer to do it,” said Josh Linville, vice president of fertilizer at StoneX. “The Indian farmer’s no different than the rest of the world where they’re basically sitting there saying, ‘I need to produce as many bushels as humanly possible on every acre of ground.’” As fertilizer costs spiraled in the first months of the war, a vast government effort unfolded to urge cutbacks, often with a focus on environmental benefits Farmers often apply fertilizer at rates above agronomic recommendations as they seek to maximize yields, according to industry officials. Decades of those practices have degraded soil health. Runoff is contaminating groundwater and rivers, while excess nitrogen releases nitrous oxide, a potent greenhouse gas that also contributes to air pollution. Of more than 9 million soil samples tested across India in the 2025-26 season, more than half had low levels of organic carbon – a key measure of soil fertility, according to data from the Agriculture Ministry India’s agriculture ministry campaigned nationwide through June to urge farmers to reduce use, just as sowing of monsoon crops began. Agriculture Minister Shivraj Singh Chouhan called for soil testing, warning that overapplication kills beneficial microorganisms, reduces yields and raises costs. Farmer Sukhbir Ram spent more than two hours at one such gathering in Punjab on a sweltering day in early June, the northern state at the heart of India’s grain belt. Another grower, 53-year-old Prem Chand, attended a similar gathering the next day in Haryana. At the meetings, fertilizer-company officials and agricultural scientists warned that years of intensive application is eroding long-term productivity“If our soils remain healthy, our communities will remain healthy too,” Sanjay Kumar, a chief manager with Hindustan Urvarak and Rasayan Ltd., told farmers gathered. Yet both growers left unconvinced — underscoring the challenge to change longstanding farming practices and rein in government spending. Chand, who grows rice, wheat, tomatoes and cauliflower on more than four acres, said he remains focused on protecting yields and income in the next harvest rather than preserving soil quality over the long term, like many farmers in Haryana’s intensively cultivated plains. Ram, whose district ranks among the country's top urea users, told officials he would consider cutting back on a small portion of his land, but said previous attempts to reduce fertilizer curbed his yields. Contacted a few weeks later, he said he plans to apply urea as usual. till, July and August mark the peak period for planting and farmers’ fertilizer availability may not be fully within their control. Ram estimates he needs four to five 45-kilogram bags of urea per acre for his rice crop, but received only three per acre for his 15-acre farm from his fertilizer supplier — a farmers’ cooperative of which he is a member. The cooperative, he said, was instructed by authorities to limit sales as part of efforts to curb excessive use. Ram said he plans to purchase the remaining requirement from private dealers. Some require farmers to buy additional crop supplements alongside the nitrogen-based fertilizer, potentially boosting his cost. At the large grain market in Karnal in the neighboring state of Haryana, a fertilizer retail outlet sales manager who asked not to be identified also said he is also rationing sales amid tight supplies and discouraging farmers from making bulk purchases. A fertilizer ministry official said India has capped subsidized fertilizer purchases to curb diversion and ensure equitable distribution. Limits vary by state, with some restricting sales to 50 bags a month per buyer. A new distribution framework is also being piloted in 40 districts, the official said. Farmers will pre-book fertilizer based on landholding and crops sown, with limits designed to ensure supply is proportional to actual farm needs. The government’s priority remains ensuring adequate fertilizer availability, stable prices and timely subsidy payments to manufacturers so supplies remain uninterrupted, while continuing to support farm incomes and food security, the official said. The government also recently approved a new program aimed at attracting investment to increase India’s annual urea production capacity by 10 million tons, about a third higher than current levels. Adding to the worries for farmers is the onset of El Niño, a weather phenomenon known for curbing the monsoon rains that are vital to their crops. June was the driest in 12 years and rainfall is expected to stay below normal through September, when the season ends, the country’s meteorological department recently forecast. Food costs, which account for more than a third of India’s consumer basket, climbed about 5.5% last month versus a year earlier. That marked an acceleration from June, when the country's inflation breached the Reserve Bank's target for the first time in over a year. “Food inflation faces upside risks this year, as tightening global fertilizer supplies and deficient rainfall so far this season could weigh on agricultural output and put upward pressure on food prices,” said Sonal Varma, chief economist for Asia ex-Japan at Nomura Holdings Inc. Global fertilizer prices have retreated from this year’s peak, with rates in a June tender in India falling to less than half April’s level. Offers in another tender this week also fell slightly. That drop may not be durable, however, without a lasting deal to secure traffic through the Strait of Hormuz, a conduit for about a third of global urea shipments and a fifth of liquefied natural gas supply. With demand climbing, India's fertilizer subsidy bill could climb to a record 3.32 trillion rupees if the conflict in the Middle East is prolonged, the Indian Council for Research on International Economic Relations, a New Delhi-based think tank, forecast in July. Even if the tensions ease, spending could total at least 2.42 trillion rupees – more than 40% above the amount allocated in the annual budget. The government has done well securing supply during the conflict, said Sachchida Nand, a visiting professor at ICRIER and co-author of the report, but managing demand is the bigger challenge. Crises like this one, just four years after Russia’s invasion of Ukraine, can create the momentum needed to push through difficult changes, he added. “Urea policy reforms are long overdue," Nand said. "Without such reforms, supply-side interventions alone will continue to come at a high fiscal and economic cost."
