Latest news with #CottonCorporationofIndia
Fibre2Fashion
07-07-2025
- Business
- Fibre2Fashion
CCI sells more than half of cotton procured in current season
India's nodal agency for government cotton procurement, the Cotton Corporation of India (CCI), has procured nearly one-third of the total cotton output, which reached a landmark of 100 lakh bales (each weighing 170 kg). The agency has also sold more than half of the procured cotton. As of the first week of this month, CCI's cotton sales had reached 56.34 lakh bales. According to market sources, CCI holds an unsold stock of nearly 43 lakh bales of cotton produced in the current season. Most of the previous season's cotton stock has already been sold. CCI has sold over 56 lakh bales from a landmark procurement of 100 lakh bales this season. Despite lower production, domestic prices remain sluggish due to weak demand and price disparity. Imports surged over 131 per cent, driven by high MSP making Indian cotton costlier. With private ginners staying away, the textile industry is heavily reliant on CCI's stock. India's cotton imports surged by 131.30 per cent to $189.18 million during the first two months of the current fiscal 2025–26 (April–March). In May 2025 alone, imports rose 133.14 per cent to $102.3 million. India's cotton marketing season runs from October to September. Cotton production in India is estimated to decline to 301 lakh bales this season, down from 327 lakh bales in the previous season. Despite lower production, cotton prices have remained subdued due to weak demand. Price disparity has dampened interest in domestic cotton, while sluggish demand for garments in both domestic and global markets has further affected cotton consumption. The Indian government raised the minimum support price (MSP) by 8 per cent, prompting CCI to procure seed cotton directly from farmers at the higher rate. The increased MSP made domestic cotton more expensive, encouraging imports from foreign markets. Market sources noted that the textile industry is more dependent on CCI's stock this season, as private ginners refrained from purchasing significant quantities of seed cotton due to persistent price disparities. This has been the main driver behind the higher volume of auction sales from CCI's stocks. Fibre2Fashion News Desk (KUL)
Fibre2Fashion
21-06-2025
- Business
- Fibre2Fashion
Long-term prospects of India's textile industry seem strong: Report
The long-term prospects of India's textile industry seem strong as channel inventories seem to be normalising at the global retailer level, the United States may raise tariffs for China, labour costs are rising in Vietnam and Bangladesh is seeing political instability, according to a report by Systematix Research. Indian companies may pass on part of rise in costs to consumers, potentially leading to higher prices for textiles and apparel. This could dampen demand in key markets like the United States. Nevertheless, larger macroeconomic trends are beginning to tilt in India's favour, positioning it as a more appealing sourcing hub for global retailers, said the report. The Indian textile industry's long-term prospects seem strong with normalising global retail inventories, probable US tariff rise for China, rising labour costs in Vietnam and Bangladesh's political chaos, Systematix Research said. Indian textile-apparel prices may rise. Stable cotton prices, favourable forex rates and operational efficiency may bolster Indian firms' profitability in the long run. However, Indian textile firms have reported a lacklustre performance in the fourth quarter of fiscal 2024-25 (FY25). Revenue of such firms witnessed a modest 5-per cent growth year on year (YoY), while earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 3 per cent, and profit after tax only slightly increased by 3 per cent YoY, primarily due to ongoing tariff uncertainties and weak sales volumes. Spinning companies experienced a slight improvement in gross margins because of falling cotton prices and steady yarn prices, while garments benefitted from normalised retailer inventories, boosting sales volumes, the report noted. In contrast, India's home textiles segment continued to experience reduced demand, with significant volume declines when compared YoY and quarter on quarter. However, stable cotton prices and favourable foreign exchange rates, along with continued focus on operational efficiency, are expected to bolster profitability for Indian textile companies in the long run, it observed. Systematix Research expects the prevailing cotton-yarn spread of 0.70 per pound to sustain and the Cotton Corporation of India (CCI) to remain as the sole supplier of cotton, unless the government decides to waive off the import duties on cotton. Fibre2Fashion News Desk (DS)
The Hindu
17-06-2025
- Business
- The Hindu
CCI buys 100 lakh bales cotton at minimum support price
The Cotton Corporation of India (CCI) has purchased close to 100 lakh bales at the Minimum Support Price (MSP) from farmers in the current cotton season and has sold 35 lakh bales in the market. Lalit Kumar Gupta, the CCI chairman and Managing Director, told The Hindu on Tuesday (June 17, 2025) that the CCI opened more than 500 centres in the cotton-growing areas since the beginning of the season in October 2024. 'The demand for cotton is not much from the textile mills, and if the current market situation persists, the CCI may purchase more cotton at MSP next season,' he said. Official sources said the outgo for CCI this year for the MSP operations was ₹37,500 crores. With 8 % increase in the MSP for the next cotton season (October 2025-September 2026), the outgo will be higher if the CCI buys more cotton from the farmers at MSP. Meanwhile, cotton imports saw a 133 % jump last month compared with last May and a 131 % increase in value in April-May 2025 compared with the same period last year. Nishant Asher, secretary of the Indian Cotton Federation, said International cotton is almost 8 % cheaper than Indian cotton. With the 11% import duty, Indian spinners are getting cotton from other countries at 1%-2% lower prices. However, they are unable to compete in the international market. The import duty is a major deterrent for the competitiveness of the Indian textile industry, he said.
The Hindu
11-06-2025
- Business
- The Hindu
Cotton auctions in Mayiladuthurai to begin June 16 in regulated markets
In a move to ensure fair pricing and enhance the income of cotton farmers, the Tamil Nadu government will commence the procurement of cotton through the electronic National Agricultural Market (e-NAM) platform from June 16. The auctions will take place across four regulated market yards in Mayiladuthurai district — Kuthalam, Mayiladuthurai, Sembanarkoil, and Sirkazhi. Collector H.S. Srikanth in a statement said the cotton cultivators had been advised to bring clean, well-dried cotton to the yards, separating higher-quality produce from the rest. Farmers were requested to avoid using plastic sacks for transport to ensure accurate weighing and better prices during auction. To participate, farmers must carry a copy of their Aadhaar card and bank passbook and register at the market yards. The Cotton Corporation of India and ginning mill owners from districts, including Tiruppur, Coimbatore, Cuddalore, Villupuram, Theni, Dindigul, Thanjavur, and Kumbakonam, had been informed and invited to join the procurement process. The cotton auctions would be conducted weekly at designated timings in the four market yards. For specific queries regarding the auctions, farmers may contact the respective market yards for guidance and information, Mr. Srikanth added.
Fibre2Fashion
29-05-2025
- 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)
