Textile Sphere News Roundup - 4th September 2024
1. Textile Exports to Remain
Strong Amid Global Shifts; FTA Negotiations with UK and EU Offer Additional
Growth Opportunities
India's textile sector is
poised for continued growth despite global economic shifts. Free Trade
Agreement (FTA) negotiations with the United Kingdom and the European Union are
anticipated to provide further momentum to the industry. These agreements are expected
to open up new markets and reduce trade barriers, giving Indian textile
exporters a competitive edge. With the global textile market undergoing
significant changes, India's strategic positioning through these FTAs could
solidify its standing as a leading textile exporter.
2. Brazilian Cotton Prices
Drop in August Amid Increased Availability
August saw a significant
drop in cotton prices in Brazil, driven by an increased domestic supply and
lower international prices. The CEPEA/ESALQ cotton index noted a 4.65% decline,
with prices falling below BRL 4 (~$0.71) per pound. Harvesting activities have
progressed smoothly across the country, with Mato Grosso do Sul completing its
harvest and 76.1% of the total area harvested nationwide by the end of August.
However, despite the increased supply, Brazilian cotton exports have seen a
sharp decline, with a 53.5% drop in export volumes compared to the same period
last year.
3. NCDEX Launches Futures
Contracts in Cotton Wash Oil for Trading
The National Commodity and
Derivatives Exchange Ltd. (NCDEX) has introduced futures contracts in Cotton
Wash Oil (COTWASOIL), expanding its portfolio in the cotton complex. These
contracts are available for trading with expiry dates set for December 2024
through March 2025. The move is expected to provide cotton traders with new
opportunities for hedging and risk management. Kadi in Gujarat, a key hub for
cotton trading, will serve as the basis center for these futures contracts.
4. Aid by Trade Foundation
Publishes Results of Independent Verifications of CmiA Standards
The Aid by Trade Foundation
(AbTF) has released its annual report on the verification and implementation of
Cotton made in Africa (CmiA) standards. The report, covering the 2023-24
season, highlights the achievements of 20 cotton companies across 11 African
countries in meeting CmiA’s sustainability pillars: management, people, planet,
and prosperity. The verifications, conducted by 22 verifiers from Ecocert and
Africert, confirmed that all companies achieved results ranging from “good” to
“very good.” Notably, improvements were seen in areas such as small-scale
farmers’ access to high-quality inputs and the transparency of payment systems.
Note:
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