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Farmers Association urged not to increase cotton import duty exemption

Bharatiya Kisan Sangh urges government not to extend exemption in cotton import dutyThe Bharatiya Kisan Sangh (BKS) has urged the central government to withdraw its decision to extend the exemption in cotton import duty till December 31. Also, warned that this move may harm domestic farmers and India may move towards dependence on imports. This appeal has been made in a letter to Finance Minister Nirmala Sitharaman.According to the letter, BKS has said that India's cotton production is around 320 lakh bales, while domestic demand is around 39 lakh bales. A standard bale of cotton in India weighs around 170 kg.Mills estimate that usually about 60-70 lakh bales of cotton are imported every year, which is about 12 percent of the country's total cotton use.The farmers' organization said that this year the area under cotton cultivation has decreased by 3.2 percent compared to last year. "If the availability of domestic cotton seed does not increase, India will become an importer of cotton instead of an exporter," the Cotton Association of India (BKS) warned in the letter.South Asia's leading multimedia news agencyIt said cotton prices have already fallen from Rs 7,000 per quintal to Rs 6,000 per quintal following the announcement, and if duty-free imports continue till December, prices may fall further. "If cotton is imported at only Rs 2,000 per quintal, will anyone buy cotton from our farmers at Rs 2,000 per quintal?" ₹ 5,000 per quintal?" the Indian Cotton Association questioned in the letter.The finance ministry had initially exempted cotton import duty from August 11 to September 30, 2025. However, the recent decision has extended this exemption till the end of December.Indian Cotton Association general secretaryMohan Mitra stressed that the government should reconsider the decision. "If the government does not stop this decision of exemption in cotton import, India will become dependent on foreigners in the cotton sector instead of becoming self-sufficient," he wrote in a letter to the finance minister.Appealing to withdraw the notification immediately, he said that ensuring better prices for cotton...The letter concluded with a call to encourage farmers and prevent the sector from going into dependence on domestic cotton. A copy of the letter was also sent to Union Agriculture Minister Shivraj Singh Chouhan.read more :- Textile Stocks: Stir due to GST proposals after tariff

Textile Stocks: Stir due to GST proposals after tariff

Textile Stocks: After tariff, now GST proposals have created a stir, keep an eye on these stocksTextile Stocks: Today, there is a lot of movement in the shares of the country's textile companies. The reason for this is that a big decision is going to be taken regarding the GST rates. According to the information received by CNBC-TV18 from sources, rates can be fixed on threads and clothes. Earlier, the shares of the textile sector are also being affected by the US tariff. Due to the purchase of oil from Russia, US President Donald Trump has imposed an additional tariff of 25% on India, due to which Indian goods are now subjected to a 50% tariff on entry into the US. Due to the US tariff, many stocks including Gokaldas Exports and Indo Count Industries fell by up to 20% in a month. This is because a large part of the revenue of these companies, about 50-70%, comes from the US market.How much relief is expected in GST rates?GST rates on synthetic filament yarn and sewing thread can be reduced from 12% to 5%. Apart from this, there is a proposal to reduce the GST rate on gimped yarn, metallized yarn and rubber thread from 12% to 5%. According to sources, there is a proposal to reduce the GST rate on other products including carpet and gauze from 12% to 5%, while the GST limit for readymade garments with 5% GST is proposed to be increased from ₹ 1,000 to ₹ 2,500. However, there is a proposal to increase the GST rates on readymade garments above ₹ 2,500 from 12% to 18%. However, it needs to be noted that these are only proposals and the final decision will be taken by the GST Council, whose meeting will be held on 3-4 September 2025.read more :- Rupee open Falls 06 Paise to 87.69/USD

USDA: India's cotton production estimated at 31.4 million bales in 2025-26

USDA estimates India's cotton output at 31.4 million bales in 2025-26The USDA local office in Mumbai has kept its forecast for Indian cotton output for the 2025-26 season beginning in October steady at 24.5 million bales of 480 pounds each (31.4 million bales of 170 kg each). This estimate has been made despite a reduction in acreage in key producing states of central India as farmers have turned to other profitable crops. The post estimates that India's cotton acreage in 2025-26 will decline to 11.2 million hectares from 11.5 million hectares in the previous year.Farmers in central India have preferred to grow competing crops such as paddy, maize and groundnut due to higher profitability, while an increase in yields due to favourable monsoon conditions is expected to offset the reduction in acreage. The post has forecast a yield of 476 kg per hectare for marketing year 2025-26, up from the current season's 464 kg per hectare.Cotton consumption in India is estimated at 25.7 million bales (25.5 million bales) at 480 pounds per bale, marginally higher due to stable demand for apparel and potential export growth following the ratification of the UK-India Comprehensive Economic and Trade Agreement (CETA). As of July 24, domestic lint prices are 5 to 6 cents higher than the Cotlook A-index, pushing mills to increase their reliance on imports. According to trade sources, mill utilisation is around 90 per cent due to strong export demand for yarn, fabric and apparel, supporting the forecast of higher consumption.read more :- "White Gold' cotton is now a burden for farmers"

"White Gold' cotton is now a burden for farmers"

Cotton, once 'white gold', has now become a burden for India's farmersCotton farmers in India are facing the worst crisis in decades. Cotton, once known as 'white gold' because of the prosperity of farmers, has now become a burden.The yield in the fields is decreasing, prices in the mandis are falling and imports are increasing in the markets. By making the import duty zero, the government has made the situation even more difficult for the farmers.If this trend continues, India may soon become completely dependent on cotton imports, just as it already depends on edible oils and pulses.Currently, cotton cultivation acreage, production and productivity are all declining, forcing India to depend more on imports.In just two years, cotton cultivation acreage has decreased by 14.8 lakh hectares, while production has declined by 42.35 lakh bales. Between October 2024 and June 2025 alone, cotton imports crossed 29 lakh bales, the highest in six years.Each bale contains 170 kg of cotton. Experts say this is the result of weak policy and poor planning. India already spends about Rs 2 lakh crore every year on importing edible oils and pulses, and now cotton is also facing the same threat.How much has the production declined?The level of decline can be seen in the data. In 2017-18, India produced 370 lakh bales of cotton. In 2024-25, it has come down to only 294.25 lakh bales. Experts say this decline is due to three major reasons - price, policy and pests.Farmers are getting less money for their crop, the government has not supported them with the right policies, and pests like pink bollworm are damaging crops. This will not only hurt farmers but also push up clothing prices for consumers as India buys more cotton from abroad.The three villains of cottonIndia is the world’s second-largest cotton producer after China, accounting for about 24% of global production.Despite this, farmers are struggling. Prices are one reason. Cotton prices had touched Rs 12,000 per quintal in 2021. Today, they have fallen to Rs 6,500-7,000 per quintal, which in many cases is even lower than the minimum support price (MSP).Another problem is pests. The pink bollworm has developed resistance to the Bt protein, making it difficult to control pest attacks. Farmers are forced to spend more money on pesticides, increasing their costs.Also, the government's decision to remove 11% import duty on cotton between August 19 and September 30 has opened the door to cheap imports, which will further reduce the income of Indian farmers.Experts say the situation is worrying. Bhagirath Chaudhary, founder director of the South Asia Centre for Biotechnology, said cotton production in India is being affected due to weak policies, lack of pest resistance and new technology. Poor seeds have also reduced productivity.He said that in 2017-18, cotton yield in India was 500 kg per hectare. By 2023-24, it has come down to just 441 kg per hectare.This is much less than the global average of 769 kg. The US produces 921 kg per hectare and China 1,950 kg per hectare of cotton. Even Pakistan is performing better than India with a production of 570 kg per hectare.The government promotes the idea of Aatmanirbhar Bharat, but such policies are discouraging farmers and reducing production. If this continues, Indian farmers will suffer and consumers will eventually have to pay more for clothes and other cotton products.read more :- Russia: Planning to hire Indian workers in textiles and technology

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