Cotton supply squeeze strengthens case for man-made fibres, says Nuvama
India’s cotton production is estimated to fall from 6.31 billion kg in CS21 to 4.95 billion kg in CS26, lifting import dependence and pressuring spinner margins. Nuvama says temporary duty relief through October 2026 does little to alter the longer-term shift toward man-made fibres.
Nuvama says India’s shrinking cotton surplus and higher import dependence are squeezing spinner margins and strengthening the case for man-made fibre capacity. Domestic cotton’s historical discount to global prices has vanished, while FY26 duty relief is temporary.
Why this matters
No related recent retail-company signals were provided. The signal highlights how cotton supply constraints can reshape sourcing costs, spinner margins and fibre choices across retail supply chains.
Retail-company signals are accelerating, up 226367% QoQ.
Also reported by
- The Hindu BusinessLine — Same time