Cotlook Index: 04-09-2026
96.00 (-2.25)
Raw Cotton Prices Stay Firm
Saturday 5th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
Raw Cotton Prices Remain Firm Despite Initial Arrivals of New Crop
Despite volatility in the global market, raw cotton prices remain firm alongside the initial arrivals of the new Kharif season crop in several parts of the country. Arrivals of the new crop have commenced in Karnataka, Andhra Pradesh, Rajasthan, Haryana, Telangana, Madhya Pradesh, and parts of Gujarat. The central government has fixed the Minimum Support Price (MSP) for medium-staple cotton at ₹8,267 per quintal and for long-staple cotton at ₹8,667 per quintal for the 2026-27 marketing season.
According to Ramanuj Das Boob, a sourcing agent based in Raichur, raw cotton prices in markets such as Raichur, Bellary, Adoni, and Yemmiganur range between ₹9,200 and ₹9,500 per quintal, depending on moisture content. These rates are above the MSP.
Boob stated that, given current international price trends, raw cotton prices are likely to remain above the MSP. ICE cotton futures are hovering around 87 cents per pound, down from approximately 93 cents on Tuesday. Following the decline in ICE prices, multinational companies (MNCs) in India have had to lower their procurement prices by about ₹2,000 per candy (356 kg). Meanwhile, the Cotton Corporation of India (CCI) has maintained its price levels.
According to Boob, despite the lower prices offered by MNCs, there are few takers. Mills are also cautious about purchasing due to weak demand for yarn and are closely monitoring market trends. Anand Popat from Rajkot noted that limited arrivals have also begun in parts of Gujarat, with prices hovering around ₹1,900–2,000 per maund (20 kg). Arrivals are delayed by over a month due to late sowing and are expected to pick up pace from the beginning of November. Currently, the arrival of the new crop is around 50,000 bales per week, a figure that could rise to approximately 1 lakh bales per week over the next two weeks. According to Ministry of Agriculture data from September 4, cotton has been sown across 109.17 lakh hectares in the country, compared to 109.87 lakh hectares during the same period last year.
CCI Raises Cotton Selling Price by ₹300
Saturday 5th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
CCI HIKES COTTON SELLING PRICE BY ₹300/CANDY | MILL & TRADER DEMAND REMAINS FIRM The Cotton Corporation of India (CCI) raised its cotton selling price by ₹300 per candy (North zone remain unchanged) during the week ending September 04, 2026, signaling firm buying interest from domestic textile mills and cotton traders. CCI sold around 57,000 bales of cotton from the 2025–26 crop during the week, with auction activity heavily concentrated at the beginning of the week.
???? Day-Wise CCI Auction Performance
August 31, 2026 (Monday)
CCI recorded its strongest sale of the week, selling 46,700 bales. Mills purchased 19,000 bales, while traders bought 27,700 bales.
September 01, 2026 (Tuesday)
CCI sold 7,800 bales, including 5,900 bales to mills and 1,900 bales to traders.
September 02, 2026 (Wednesday)
A total of 2,000 bales were sold, with mills purchasing 1,300 bales and traders 700 bales.
September 03, 2026 (Thursday)
CCI sold 400 bales, equally split between mills and traders at 200 bales each.
September 04, 2026 (Friday)
The week concluded with 100 bales sold, purchased entirely by traders.
Following the latest auctions, CCI's cumulative cotton sales for the 2025–26 season reached approximately 94.25 lakh bales.
The rupee strengthened by 10 paise against the dollar to open at 94.39.
Monday 7th Sep 2026, Yash Chouhan, (Source: www.smartinfoindia.com)
The rupee had closed at 94.49 on Friday, whereas today it opened at 94.39 per dollar, marking a gain of 10 paise. The BSE Sensex fell by 105.47 points or 0.14% to 76,409.96, while the NSE Nifty is trading at 23,850.90, down by 46.80 points or 0.20%.
India’s Cotton Yarn Prices Surge 60%, Apparel Exporters Call for Export Curbs
Thursday 3rd Sep 2026, (Source: www.kohantextilejournal.com)
Indian apparel exporters are urging the government to consider regulating cotton yarn exports as a sharp rise in yarn prices puts growing pressure on garment manufacturers and threatens their competitiveness in international markets. Cotton yarn prices in India have climbed by around 60% since the beginning of 2026, rising from approximately INR 250 per kg to nearly INR 400 per kg, according to the Apparel Export Promotion Council (AEPC). AEPC Chairman A. Sakthivel has called on Commerce Minister Piyush Goyal to consider measures to regulate exports of cotton yarn, particularly 20s count and above, amid concerns over limited cotton availability, reduced market arrivals and speculative stockholding. Why Cotton Yarn Prices Are Rising in India
The industry says cotton mills are increasingly dependent on Cotton Corporation of India (CCI) auctions as supplies available from ginners tighten. At the same time, higher fuel and other input costs are adding further pressure on garment production costs. Another factor influencing the market is growing demand for Indian cotton and cotton yarn from major apparel-producing countries including Bangladesh and Vietnam. AEPC linked part of this demand to US restrictions on the use of Chinese cotton under the Uyghur Forced Labor Prevention Act (UFLPA).
Higher Costs Challenge India’s Apparel Exporters
The price increase comes at a sensitive time for India’s apparel industry. Exporters see new opportunities emerging through trade agreements with markets including the UK and New Zealand, but higher domestic manufacturing costs could make it more difficult for Indian suppliers to compete. AEPC also highlighted the economic advantage of exporting finished garments rather than lower-value raw materials. According to the council, raw cotton generates around INR 275 per kg, yarn approximately INR 325 per kg, while finished garments can achieve a value of between INR 800 and INR 1,200 per kg after value addition.Balancing Yarn Exports with Domestic Manufacturing The debate now centres on how India can balance cotton and yarn exports with the raw material needs of its domestic apparel manufacturing industry.
Ashnoor Textile Mills FY26 Profit Falls 47% Amid US Tariff Impact
Saturday 5th Sep 2026, (Source: www.apparelresources.com)
Ashnoor Textile Mills reported a 46.85% decline in net profit after tax (PAT) for the financial year ended March 31. The textile manufacturer attributed the decline primarily to unprecedented tariff-related disruptions affecting its exports to the United States, its principal export market. Operating income contracted by 36.34% to Rs 113.61 crore (US $12.02 million). Despite the challenging external environment, the company maintained adequate liquidity and exercised disciplined cost control during the year. The Board of Directors did not recommend a dividend for FY26, choosing instead to retain earnings to support future growth and strengthen the company’s ability to navigate continued trade volatility. The decline in profitability was broad-based. Operating income fell from Rs 178.48 crore (US $18.89 million) in FY25 to Rs 113.61 crore (US $12.02 million) in FY26. Other income also declined by nearly half, falling from Rs 5.70 crore (US $0.60 million) to Rs 2.79 crore (US $0.30 million). As a result, total income stood at Rs 116.40 crore (US $12.32 million), compared with Rs 184.17 crore (US $19.49 million) in the previous financial year. Profit before tax declined by 47.46% to Rs 10.77 crore (US $1.14 million) from Rs 20.50 crore (US $2.17 million) in FY25. Net profit after tax stood at Rs 8.48 crore (US $0.90 million), compared with Rs 15.96 crore (US $1.69 million) a year earlier. Export realisations on a Free On Board (FOB) basis declined to Rs 81.70 crore (US $8.65 million) from Rs 90.29 crore (US $9.56 million) in FY25. However, the company’s net foreign exchange earnings remained relatively robust at Rs 79.75 crore (US $8.44 million), supported by lower foreign currency expenditure on stores, spares and travel. Despite the sharp fall in revenue, the company managed to marginally improve its operating profit ratio to 14.79%, compared with 13.55% in the previous year. This indicates that disciplined expense management and lower variable costs helped cushion the impact of reduced production and sales volumes. The improvement also suggests that the company was able to maintain operating efficiency despite the challenging export environment. Looking ahead, management expects FY27 to be comparatively better as the market absorbs the initial impact of tariff-related disruptions. The company anticipates a gradual normalisation of export flows and a recovery in operating margins, supported by its established export capabilities and strong financial position. However, the pace of recovery will depend largely on developments in US trade policies and the broader global demand environment.
GeM, Textiles Committee Sign MoU to Promote Recycled and Upcycled Textile Procurement
Saturday 5th Sep 2026, (Source: www.apparelresources.com)
The Government e-Marketplace (GeM) and the Textiles Committee (TC), Ministry of Textiles, have signed an MoU to promote recycled and upcycled products made from pre- and post-consumer textile waste, scrap and second-hand clothes through government procurement. The partnership aims to create a ‘Waste-to-Value-to-Market’ ecosystem, enabling textile waste to be converted into value-added products and sold to government buyers through GeM. Under the agreement, the Textiles Committee will identify, verify and certify eligible producers, while supporting capacity building, market research and the development of technical specifications. GeM will create dedicated categories for recycled and upcycled textile products, facilitate seller onboarding and connect them with government buyers. The initiative will use a hub-and-spoke model to support last-mile recyclers, upcyclers, artisans, MSMEs and local enterprises. It will also focus on increasing participation of women-led businesses and circular-economy enterprises. GeM CEO Mihir Kumar noted that the partnership would connect certification, standardisation and market access to create reliable demand for products made from textile waste. He added that government procurement could accelerate the adoption of such products across offices, institutions, gifting and other public-use requirements. The initiative is expected to support resource conservation, sustainable livelihoods and India’s transition towards a circular and resource-efficient textile economy.
Union Minister Shri Shivraj Singh Chouhan reviews action plan for strengthening KVKs through greater State participation
Monday 7th Sep 2026, (Source: www.pib.gov.in)
Focus on upgradation of 300 KVKs by March 2027 and establishment of Incubation-cum-Skill Centres in all KVKs by December 2028 Union Minister for Agriculture and Farmers’ Welfare and Rural Development, Shri Shivraj Singh Chouhan, today chaired a meeting in New Delhi to review the Action Plan for strengthening Krishi Vigyan Kendras (KVKs) through enhanced participation of States. The deliberations focused on the implementation of key recommendations concerning KVKs emerging from the 5th Chief Secretaries’ Conference 2025, and on measures to accelerate their implementation. Union Minister of State for Agriculture and Farmers’ Welfare, Shri Bhagirath Choudhary, Secretary, Department of Agricultural Research and Education (DARE) and Director General, Indian Council of Agricultural Research (ICAR), Dr. Mangi Lal Jat, and senior officials of the Ministry were present. Discussions focused on the action point of upgrading the infrastructure and logistics of 300 prioritized KVKs by March 2027. Shri Shivraj Singh Chouhan emphasized the need for active participation and timely support from State Governments to achieve the target within the stipulated timeframe. The Secretary, DARE, has engaged with the Chief Secretaries of all States and Union Territories to mobilize financial and institutional support for the upgradation of prioritized KVKs. Several States have initiated the process through their respective State Agricultural Universities. Maharashtra, Gujarat, Goa and Chhattisgarh have received Detailed Project Reports (DPRs) from Universities/KVKs, while other States are at various stages of preparation and implementation. Also covered the action point of establishing Incubation-cum-Skill Centres in all KVKs by December 2028. Under the initiative, KVKs are being mapped with agro-based enterprises, technical partner institutions and district-specific agricultural opportunities. KVK-wise incubation plans are being developed for submission to States and Union Territories for funding and implementation support. Further detailed discussions on reforms concerning KVK personnel. The proposed reforms relating to pay, allowances and promotion of KVK staff have received approval from the Department of Expenditure (DoE). The role of State Governments in providing NPS contributions and retirement benefits for KVK staff, as applicable, was also emphasized. States were urged to undertake timely recruitment against vacancies to ensure adequate manpower for the effective functioning of KVKs and delivery of their mandated activities.
Attention was also drawn to the importance of ensuring timely release of funds to KVKs, particularly for seasonal agricultural programmes, so that planned activities are implemented within the appropriate agricultural window. Under the Cluster Frontline Demonstrations (CFLD) on Pulses and Oilseeds programme for 2026–27, activities are being implemented across 24 States through 353 KVKs/districts, with a target area of 12,349 hectares. An area of 9,750 hectares, has already been achieved. Issues relating to fund-flow mapping and delays in the release of funds in some States were discussed. States were requested to facilitate the smooth and timely flow of funds up to ATARI and KVK levels, ensure timely availability of recommended quality seeds and varieties, and strengthen coordination during the planning and execution of demonstrations.
Review also highlighted the role of KVKs in supporting the Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PM DDKY). States were requested to provide adequate funding support to KVKs for implementing their mandated activities as well as district-specific action plans under PM DDKY. It was further emphasized that activities undertaken by KVKs at the district level, in addition to capacity-building programmes, should be captured and uploaded on the designated portal to facilitate comprehensive monitoring, reporting and assessment of outcomes. Shri Shivraj Singh Chouhan emphasized that the transformation of KVKs requires strong Centre-State convergence, timely financial support, modern infrastructure, adequate manpower and effective implementation of district-specific action plans. He stressed the importance of ensuring that KVKs are equipped with the necessary infrastructure, human resources and institutional support to effectively serve the farming community and respond to emerging challenges in agriculture. Strengthened KVKs will play a crucial role in taking scientific knowledge, modern agricultural technologies, improved varieties, skills, innovation and entrepreneurship opportunities closer to farmers and rural communities. The deliberations underscored the need for States and Union Territories to accelerate implementation of the agreed action points and strengthen convergence with the Centre and other stakeholders so that KVKs emerge as effective platforms for agricultural technology dissemination, skill development, innovation and rural entrepreneurship, thereby contributing to a developed and prosperous agricultural sector.
