Textile Market News

Cotton farmers in Telangana are facing a fresh crisis after the Telangana Cotton and Ginning Mills Association decided to halt cotton purchases. The association's decision is a protest against new norms imposed by the Cotton Corporation of India (CCI) and the state government. The CCI's new policy, has significantly impacted both mills and farmers. Previously, cotton was procured from 318 ginning mills across the state.

Madhya Pradesh’s Bhikangaon mandi is buzzing as cotton prices have touched Rs 7,500 per quintal. This increase has brought much-needed relief to local farmers. The Cotton Corporation of India (CCI) has initiated cotton procurement at support price, although initial purchases were modest. To ensure farmers benefit from the support price, they must register their cotton in the market. The registration process is simplified, requiring only an Aadhaar card, bank account, and Aadhaar-linked mobile number.

Polyester Filament Yarn (PFY) prices in China increased by over 1.1 per cent in late October 2024, driven by a combination of factors. A shortage of Monoethylene Glycol (MEG), a key PFY feedstock, has tightened supply. The recent maintenance shutdown at Xinjiang Zhongkun's ethylene glycol unit further exacerbated this issue, leading to higher input costs for PFY producers.

As Tamil Nadu readies a new textile policy, industry stakeholders are appealing for state support to modernize aging powerloom units. Many powerlooms need upgrades or retrofitting to maintain competitiveness, according to local industry associations. Key issues raised include financial aid for modernization and tackling waste from Common Effluent Treatment Plants. Rising electricity costs, now at Rs 9.5 per unit, were also highlighted as a major burden for mills.

Deputy Commissioner B Susheela has announced the opening of Minimum Support Price (MSP) cotton procurement centres in the district. Farmers can now sell their cotton crops at these designated centres. The Cotton Corporation of India Limited's Hubballi unit has been tasked with overseeing the procurement process. To be eligible for MSP, cotton must meet quality standards, including a moisture content of 12 per cent or less.

A recent Rs 10 per kg reduction in cotton yarn prices has gone down well among Tiruppur's knitwear exporters. This price drop, effective comes ahead of the peak New Year and Christmas season, and is expected to stimulate domestic production and international exports. The price reduction across all counts, including 20s kh and 40s kh, has been welcomed by industry leaders. KM Subramanian, President, Tiruppur Exporters' Association, believes this development, coupled with the decline in cotton prices to Rs 56,000 per candy, will significantly contribute to achieving the annual export target of Rs 40,000 crore.

An innovation in ring spinning technology promises to significantly boost productivity and yarn quality. The new ‘S-2m’ ring-traveller system, developed by a team of researchers, offers a revolutionary approach to traditional ring spinning. The core issue with traditional ring spinning is the high friction between the traveller and the ring, limiting the machine's speed.

Farmers in erstwhile Adilabad district, a major cotton-producing region in Asia, are facing significant losses due to insufficient procurement centers. The Cotton Corporation of India (CCI) has established only 11 centers, leaving many farmers reliant on private traders who offer lower prices and additional charges. The government's Minimum Support Price (MSP) for cotton is Rs 7,520 per quintal, but private traders are offering only Rs 7,010, along with a 2.5 per cent commission and a Rs 25 per quintal handling fee.

Tajikistan's cotton harvest is facing significant delays due to heavy rainfall, potentially impacting the country's textile industry. Till late October, only 164,000 tons of cotton had been harvested, falling short of expectations. The delayed harvest could extend into mid-December, leading to lower production volumes. Slow harvest poses challenges for Tajikistan's textile industry, which heavily relies on domestic cotton supply.