News Capsule: Cotton prices firm up
07-Jan-2026 08:57 AM
News Capsule: Cotton prices firm up
★ Cotton prices have strengthened by over 5% after the import duty exemption on raw cotton ended on December 31, lending support to the domestic market. Further upside is possible, though gains may be limited as Bangladesh is considering imposing a duty on imports of Indian cotton yarn.
★ Bangladesh, the largest buyer of Indian yarn, is exploring tariffs to protect its domestic producers. The Bangladesh Trade and Tariff Commission has held discussions on the issue, and market sources indicate a proposed duty of around 10%, though no official announcement has been made yet.
★ According to the former president of the Cotton Association of India (CAI), any duty imposed by Bangladesh could put pressure on the domestic yarn market, as India exports nearly 30% of its total yarn production, with Bangladesh accounting for a major share.