The textile industry is abuzz with significant developments across India, particularly in Surat and Haryana, alongside a noteworthy rally in cotton futures. Here’s a breakdown of today’s top stories:
1. Surat's Textile Industry
Amplifies Demand for State Textile Policy
Surat, known as a major
textile hub in Gujarat, is seeing increased pressure from industry leaders to
implement a dedicated state textile policy. This demand follows closely on the
heels of Bihar's recent announcement of its own textile policy. The textile
sector in Surat has long been a crucial part of Gujarat's economy, and the
absence of a specific policy has raised concerns among stakeholders. They argue
that while other leading states are proactively supporting their textile
industries with tailored policies, Gujarat is lagging behind. The call for a
state policy aims to strengthen the industry's competitiveness, promote growth,
and address the unique challenges faced by the textile sector in the region.
2. Haryana to Begin Cotton
Procurement on October 1, 2024
Haryana is gearing up for
the upcoming Kharif Marketing Season 2024-25, with cotton procurement set to
begin on October 1, 2024. The procurement will be conducted by the Cotton
Corporation of India (CCI) at the Minimum Support Price (MSP) set by the
Government of India. A recent review meeting, chaired by Raja Sekhar Vundru,
Additional Chief Secretary of the Agriculture and Farmers Welfare Department,
confirmed that all necessary preparations are in place. Dr. Vundru assured that
both the CCI and the Haryana Government are committed to ensuring a smooth
procurement process, minimizing any potential difficulties for farmers. This
move is expected to provide much-needed support to cotton farmers in the state,
ensuring fair prices for their crops.
3. Cotton Futures Rally with
Strong Market Support
The cotton market has seen a
significant rally, with futures settling with gains ranging from 101 to 170
points across the front months. This surge is largely attributed to supportive
external markets, including a drop in the US dollar index and a rise in crude
oil futures. According to the latest Commitment of Traders report, there was a
2,391 contract addition to net short positions as of August 20, bringing the
total to 51,845 contracts. Despite a challenging export environment, with
upland cotton export commitments down 17% year-over-year, the market remains
optimistic. The Cotlook A Index and USDA’s Average World Price have both seen increases,
reflecting a generally positive outlook for the cotton market in the near term.
Also Watch:
These developments highlight
the dynamic nature of the textile industry in India, with regional demands for
policy support, strategic procurement plans, and fluctuating market conditions
shaping the future of the sector. Stay tuned to Textile Sphere for more updates
on these and other important stories.
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