Latest news with #CottonCorporationofIndia
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Indian govt raises cotton MSP up to 11.84% for 2025-26 season
The Indian government has increased the Minimum Support Price (MSP) of cotton by up to 11.84 per cent for the upcoming 2025–26 season (October–September). MSP is the price at which the government purchases cotton from farmers through its nodal agency, the Cotton Corporation of India (CCI). The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in MSP for 14 Kharif crops, including cotton, for the next marketing season 2025–26. India has raised the Minimum Support Price (MSP) for cotton by up to 11.84 per cent for the 2025–26 season, with medium staple at ₹7,710 and long staple at ₹8,110 per quintal. While aimed at supporting farmers, traders argue the hike makes Indian cotton less competitive globally, with domestic prices now higher than Brazilian cotton on a CIF basis. According to a government press release issued on Wednesday, the MSP for medium staple seed cotton has been raised by 8.27 per cent to ₹7,710 ($90.18) per quintal. The purchase price for long staple fibre has been increased by 11.84 per cent to ₹8,110 ($94.86) per quintal. Over the past 12 years, the government has increased MSP by up to 108 per cent, with medium staple cotton rising 108 per cent and long staple cotton 103 per cent during this period. However, the increase in cotton MSP has not been well received by the trading community. Traders believe that excessive MSP hikes make Indian cotton uncompetitive in the global market and place the Indian textile industry in a difficult position. Jagdish Soni, a trader from Ahmedabad, compared pricing dynamics, noting that Indian cotton would cost around ₹63,000 per candy of 356 kg or 94 cents per pound, while Brazilian cotton (ICE cotton December 2025 contract) would be available at ₹60,600 per candy (90.45 cents per pound) on a CIF basis. Fibre2Fashion News Desk (KUL)
Indian Express
6 days ago
- Business
- Indian Express
Area under cotton cultivation up by 15% in Punjab, but long-term decline continues
Cotton cultivation in Punjab has registered a 15 per cent increase this year compared to 2024, offering a ray of hope for the state's struggling cotton belt. However, the overall trend remains downward when viewed against the last five years, with the area under cotton cultivation continuing to shrink from its historical highs. The figure is likely to improve further as the data of the area under cotton sowing is to be collected till May 31. According to official data, the cotton-growing districts of Fazilka, Bathinda, Mansa, and Muktsar have so far covered 1.13 lakh hectares out of the targeted 1.29 lakh hectares, falling short of the target by 14.6 per cent. But this marks a notable rise from the 98,490 hectares sown in 2024 — a year that saw record-low coverage of the cash crop. 'The improvement is visible, though minor. Cotton sowing is almost complete, and final data will be available in early June,' said Jagdish Singh, Chief Agriculture Officer, Bathinda. 'Based on the sale of seeds, we are expecting a further increase in the area under cotton by the end of May.' Rajinder Kumar, Chief Agriculture Officer, Fazilka, attributed the partial increase to better awareness and slight recovery of farmer confidence, though a double breach in the Punjawa Minor Canal affected irrigation and sowing timelines in parts of the district. Despite this year's gain, the long-term decline in cotton acreage is stark. In 2019, cotton was sown on 3.35 lakh hectares. The numbers dropped to 2.5–2.52 lakh ha during 2020–2021, to 2.48 lakh ha in 2022, to 1.79 lakh ha in 2023, and further to 98,490 ha in 2024. The latest target of 1.29 lakh ha represents a deliberate scaling down in response to farmer disinterest, pest threats, and market uncertainties. Punjab boasted 8 lakh hectares under cotton cultivation during the 1980s. Experts trace the steady decline to the Green Revolution, which encouraged paddy cultivation in areas with canal water access, leaving only the saline-water-prone Malwa belt suitable for cotton. 'Cotton was once white gold, but issues like whitefly and pink bollworm attacks, spurious seeds, and low MSP procurement by the Cotton Corporation of India have disillusioned farmers,' said Sukhjinder Singh Rajan, a Fazilka farmer. In 2015, a whitefly outbreak devastated 3.25 lakh hectares of cotton. Compensation of Rs 8,000 per acre was announced. A pink bollworm infestation in 2021 led to another round of farmer losses and a Rs 17,000 per acre relief package. Unlike cotton, paddy benefits from an assured minimum support price (MSP) and easy canal water access. 'That's why many farmers shift to paddy. Cotton is risky with unpredictable pests and no guaranteed procurement,' added Rajan. Still, some officials remain optimistic. 'Mansa is very close to achieving its target of 28,500 hectares,' said Harpreet Pal Kaur, Chief Agriculture Officer, Mansa. 'We expect to meet it once final figures are compiled.' While the marginal rebound in 2025 is encouraging, experts stress the need for quality seeds, fair pricing, pest management, and assured procurement to revive cotton cultivation meaningfully in Punjab. Until then, the area under this once-thriving cash crop is unlikely to recover its lost stature.
Fibre2Fashion
26-05-2025
- Business
- Fibre2Fashion
CAI raises India's cotton output, cuts demand & exports
India's cotton production estimate has been revised upward to 291.35 lakh bales (of 170 kg each) from the previously projected 291.30 lakh bales. The Cotton Association of India (CAI) stated that the revision was due to increased output in the south-eastern state of Odisha. Meanwhile, cotton consumption, imports, and ending stocks have shown a sluggish trend in the trade. In its April 2025 report, CAI has reduced the cotton consumption estimate by 8 lakh bales to 307 lakh bales, down from the earlier projection of 315 lakh bales for the current season. India's cotton production for the 2024â€'25 season has been slightly revised up to 291.35 lakh bales, according to the Cotton Association of India. However, domestic consumption and exports have declined due to increased competition from man-made fibres, labour shortages, and lower demand. Cotton exports are expected to fall sharply, while imports have more than doubled. Cotton is facing stiff competition from man-made fibres such as viscose, polyester, and others. Southern textile mills are increasingly inclined to use man-made fibres over cotton, with realisation from man-made fibres reaching up to 98 per cent, compared to 72–75 per cent for cotton. Labour shortages have also contributed to the slower consumption of cotton. Additionally, the CAI has reduced its cotton export estimate by 1 lakh bale, from 16 lakh bales to 15 lakh bales, in the latest report. Of this, 10 lakh bales were shipped in the seven months since October 2024. Last year, exports were estimated at 28.36 lakh bales, indicating that India's cotton exports will decline by 13.36 lakh bales this season. Cotton imports have been maintained at 33 lakh bales, of which 27.5 lakh bales had already been imported by April this year. This figure is more than double the 15.20 lakh bales imported in the previous season. Cotton ending stocks as of September 30, 2025, are expected to rise to 32.54 lakh bales, compared to 30.19 lakh bales at the end of the 2023–24 season. Between October 1, 2024 and April 30, 2025, cotton production totalled 268.20 lakh bales, with an average daily pressing of 1.28 lakh bales. In April 2025 alone, 16.56 lakh bales were pressed, reflecting a decline in arrivals. Approximately 185 lakh bales were consumed over the past seven months, averaging 26.5 lakh bales per month. As of the end of April 2025, spinning mills were estimated to hold stocks of around 35 lakh bales, equating to about 45 days of average consumption. Mills in north India have stocks for 60–75 days, while mills in southern and central regions have about 30 days of stock, bringing the national average to 42 days. Around 95.89 lakh bales of cotton were stocked with the government's nodal agency, the Cotton Corporation of India (CCI), as well as traders and ginners. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
07-05-2025
- Business
- Fibre2Fashion
India's cotton yarn industry to grow 7â9% in FY26: Crisil
India's cotton yarn industry is expected to witness a revenue growth of 7–9 per cent in the current fiscal, a marked improvement from the modest 2–4 per cent growth recorded in the previous year. This uptick will be driven primarily by higher volumes, aided by a modest rise in yarn prices and strong domestic demand. Operating margins, which had already shown recovery last fiscal, are projected to improve by another 50–100 basis points this year. This will be supported by stable cotton yarn spreads and improved cotton availability through procurement by the Cotton Corporation of India (CCI). India's cotton yarn industry is set to grow 7â€'9 per cent this fiscal, up from 2â€'4 per cent last year, driven by higher volumes, stable cotton supply, and a rebound in exports to China. Margins may rise 50â€'100 bps, with improved profitability and stable credit profiles. Risks include tariff shifts, US slowdown, and cotton price volatility. Capex and gearing will stay moderate. An analysis of 70 cotton yarn spinning companies — representing 35–40 per cent of the industry's revenue — supports this outlook. The key growth catalyst for fiscal 2026 (FY26) will be a rebound in yarn exports to China. Exports constitute around 30 per cent of the industry's revenue, with China accounting for nearly 14 per cent. In fiscal 2025, India's yarn exports to China saw a dip due to an unusually high domestic cotton output in China, leading to a 5–7 per cent contraction in India's overall cotton yarn exports. However, with China's cotton production expected to normalise, yarn exports are projected to rise by 9–11 per cent this year. 'This is likely to benefit Indian spinners as they will leverage steady domestic cotton production in current cotton season and regain their market share. Moreover, India's position in textile exports to US remains competitive given the higher tariff on China (key competing nation in home textile exports), which is expected to support the 6-8 per cent revenue growth for downstream industries (home textiles and readymade garments) this fiscal,' said Gautam Shahi, director, Crisil Ratings Ltd . On the raw material front, the CCI's substantial procurement during the 2025 cotton season is expected to ensure steady cotton supply. This will help minimise inventory losses and support a 50–100 basis point improvement in spinners' profitability in the current fiscal, following a 100–150 basis point recovery last year. 'Driven by improved operating performance, credit profiles, which showed signs of recovery last fiscal, will remain stable this fiscal. Meanwhile, capex for cotton yarn spinners will remain moderate, with only select players undertaking capital expenditure, which will limit the need for significant debt additions. Additionally, steady cotton availability will lead to lower inventory holding, reducing the requirement for significant incremental working capital financing,' Pranav Shandil, associate director, Crisil Ratings, said in a release. Consequently, the interest coverage ratio of spinners is expected to rise to 4.5–5 times in the current fiscal, up from approximately 4–4.5 times in fiscal 2025. Gearing is likely to remain stable at around 0.55–0.6 times. However, industry stakeholders remain cautious about potential risks, including tariff changes affecting India and its competitors, high inflation or an economic slowdown in the US, and volatility in domestic cotton prices relative to international levels. Fibre2Fashion News Desk (HU)
Time of India
05-05-2025
- Business
- Time of India
India's cotton yarn industry set for 7-9% revenue growth driven by export rebound and domestic demand
An analysis of 70 cotton yarn spinners , which account for 35-40% of the industry revenue, by Crisil Ratings has indicated a rebound in exports and favourable domestic demand are expected to drive India's cotton yarn industry to a 7-9% revenue growth in the current fiscal, up from 2-4% growth in the previous fiscal. #Pahalgam Terrorist Attack Inside Operation Tupac: Pakistan's secret project to burn Kashmir Who is Asim Munir, the Zia-style general shaping Pakistan's faith-driven military revival 'Looking for partners, not preachers': India's strong message for EU amid LoC tensions Uptick in volumes will primarily drive this growth, supported by the modest increase in yarn margins, after witnessing a recovery last fiscal, are expected to see a further uptick of 50-100 bps this fiscal, owing to stable cotton yarn spreads (Chart 1 in annexures) and better availability of cotton through the Cotton Corporation of India (CCI). The primary driver for the revenue uptick in fiscal 2026 will be the rebound in yarn exports to China. Exports account for 30% of the industry's revenue, of which China accounts for 14%. In fiscal 2025, India's yarn exports to China declined compared to prior fiscals on account of an exceptionally high cotton production in China last fiscal. This resulted in a 5-7% de-growth in India's total cotton yarn exports. However, this is likely to reverse in the current fiscal year, with yarn exports seeing a 9-11% growth in exports to China recover, driven by the normalisation of their domestic cotton production. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Says Gautam Shahi, Director, Crisil Ratings Ltd, 'This is likely to benefit Indian spinners as they will leverage steady domestic cotton production in the current cotton season and regain their market share. Moreover, India's position in textile exports to the US remains competitive given the higher tariff on China (key competing nation in home textile exports), which is expected to support the 6-8% revenue growth for downstream industries (home textiles and readymade garments) this fiscal.' On the raw material front, CCI's significant cotton procurement in Cotton Season 2025 will ensure steady cotton availability, minimising inventory losses and boosting spinners' profitability by 50-100 bps this fiscal, after a 100-150 bps recovery in fiscal 2025. Live Events Says Pranav Shandil, Associate Director, Crisil Ratings Ltd, 'Driven by improved operating performance, credit profiles, which showed signs of recovery last fiscal, will remain stable this fiscal. Meanwhile, capex for cotton yarn spinners will remain moderate, with only select players undertaking capital expenditure, which will limit the need for significant debt additions. Additionally, steady cotton availability will lead to lower inventory holding, reducing the requirement for significant incremental working capital financing.' As a result, the interest coverage ratio of spinners is expected to improve to 4.5-5 times this fiscal from 4-4.5 times in fiscal 2025. Gearing is expected to remain stable at ~0.55-6 times, like last fiscal. That said, any potential changes in tariffs imposed on India and the competing nations, higher inflation or slowing economic growth in the US leading to a demand slowdown, and any adverse movement in domestic cotton prices vis-à- vis international prices in the near term will bear watching, Crisil Ratings said.
