Fashion
India’s cotton arrivals to peak by mid-November; CCI to step in
Cotton acreage in the country stands at 110.03 lakh hectares in the current season, down from 112.97 lakh hectares a year ago, according to the Ministry of Agriculture. The area was 123.71 lakh hectares in 2023–24 and averaged 129.50 lakh hectares over the past five years.
India’s cotton arrivals are expected to rise sharply next week, peaking by mid-November as CCI begins MSP procurement.
Late monsoon rains delayed sowing and harvest, particularly in Maharashtra.
While prices remain below MSP due to high moisture, arrivals are set to strengthen, with CCI’s large-scale purchases likely to support market stability.
According to market traders, daily cotton arrivals were between 50,000 and 60,000 bales of 170 kg before Diwali. Cotton arrivals typically begin in north India in mid-September, but this year they started in the last week of September. Farmers in north India—including Punjab, Haryana, and Rajasthan—delayed sowing to avoid damage from late rains in previous years.
Satish Sharma, a trader from Bathinda (Punjab), told Fibre2Fashion, “Farmers faced severe damage from late rains in previous years. Therefore, they preferred sowing in the later phase this year, which caused a slight delay in arrivals. Despite precautions, late rain has damaged some crops in Haryana.” He added that the region is currently receiving around 10,000–12,000 bales of cotton daily, which may rise to 20,000–22,000 bales in the next two weeks. “However, this is insignificant nationally, as north India contributes a relatively small portion to the country’s total cotton production,” he added.
Gujarat and Maharashtra, which together account for over 50 per cent of India’s total cotton output, are yet to see arrivals pick up. Maharashtra continues to experience sporadic rains, delaying cotton picking. Chetal Bhojani, a trader from Morbi (Gujarat), told F2F, “Farmers will bring seed cotton in bulk when CCI starts procurement across all centres. Currently, they are selling only to meet financial needs. Seed cotton prices remain lower than the MSP.”
On Friday, seed cotton was priced between ₹1,450 and ₹1,615 per maund of 20 kg, while CCI’s MSP stands at ₹1,615 per maund. Higher moisture levels and slow demand have depressed open-market prices. Bhojani noted that seed cotton had moisture levels of 30–40 per cent before Diwali, while cotton seed was sold with about 25 per cent moisture. Ginned cotton traded at 10–11 per cent moisture before the festival. Although traders were buying cotton with certain moisture content, it further reduced both seed and ginned cotton prices. After Diwali, new seed cotton is expected to attract better demand due to lower moisture content.
Traders said cotton arrivals are set to increase in the coming week and could surpass 1 lakh bales within the next two weeks. However, peak arrivals of around 2 lakh bales per day are expected only once CCI begins full-scale procurement. The government agency has started symbolic purchases, which could send a positive signal to the market and keep prices steady. Still, market prices are likely to find real support only when large-scale procurement begins.
Last season, the government agency purchased about one-third of the total crop as market prices remained below the MSP. A similar scenario is expected this year. Cotton prices may improve slightly but are likely to stay under the MSP. Consequently, CCI’s procurement could again reach around 100 lakh bales, similar to last year.
Trade sources said CCI has yet to start large-scale procurement despite sufficient arrivals, as it aims to limit purchases. Extensive buying would place a heavy financial burden on the government. The corporation may begin procurement state by state once arrivals intensify across major producing regions.
Fibre2Fashion News Desk (KUL)
The downturn in manufacturing output was broad-based across sub-sectors. Firms expect output to fall again over the quarter to January.
The UK manufacturing sector endured another challenging period in the quarter to October, with output and orders falling sharply, sentiment deteriorating and investment plans cut back sharply, a Confederation of British Industry survey revealed.
Demand conditions weakened notably, cost pressures remained elevated and and manufacturers’ investment appetite markedly deteriorated.
Demand conditions weakened notably. The volume of total new orders fell sharply across the quarter (minus 20 per cent, from minus 17 per cent in July). Both domestic and export orders fell at their fastest rates since the early stages of the COVID-19 pandemic (July 2020).
Levels of total and export order books remained well below their long-run averages, and manufacturers anticipate another drop in new orders over the next three months.
Cost pressures remained elevated, although growth in domestic selling prices has slowed and export prices have fallen, suggesting a squeeze on margins. Manufacturing competitiveness fell in all major markets, a CBI release said.
Manufacturers’ investment appetite has deteriorated markedly. Spending plans for the year ahead fell across every category, held back by weak demand, inadequate net returns and shortages of internal finance.
Investment in plant and machinery and buildings looks set to fall particularly sharply. The share of firms investing to expand capacity fell to a level last seen in the recessions of 2009 and the early 1980s. Meanwhile, employment fell at the fastest pace for five years.
The share of firms citing orders or sales as a factor likely to limit output in the next three months rose from July and stands above the long-run average (73 per cent, from 62 per cent in July).
Manufacturers expect stocks of finished goods, raw materials and work in progress to all fall in the three months to January.
Manufacturing competitiveness deteriorated across all major markets in the three months to October. Competitiveness is expected to decline again in the three months to January, particularly in UK markets, followed by European Union (EU) and non-EU markets.
The survey covered 218 manufacturing firms.
Fibre2Fashion News Desk (DS)
Reports suggest US consumers are affected significantly by the tariffs, with the average family reportedly incurring $1,700 in added costs.
This has reportedly fuelled inflation, softened demand, and raised concerns about stagflation.
Some reports suggest that the Trump administration is now quietly exempting many products amid industry pushbacks.
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