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The rupee falls to a historic low of 85.83 versus the US dollar.The rupee fell 11 paise to a record low of 85.83 against the US dollar in early trade on Wednesday. The rupee fell 11 paise to a record low of 85.83 against the US dollar in early trade on Wednesday due to strength in the US currency and rising crude oil prices. However, the government has lowered the country's economic growth forecast.read more :- Indian rupee ended 11 paise higher at 85.72 per dollar on Tuesday versus previous close of 85.83.

The Indian rupee closed Tuesday at 85.72 per dollar, 11 paise higher than its previous closing of 85.83.At close, the Sensex was up 234.12 points or 0.30 percent at 78,199.11, and the Nifty was up 91.85 points or 0.39 percent at 23,707.90. About 2527 shares advanced, 1286 shares declined, and 103 shares unchanged.read more :- India Budget 2025: CITI advocates for low import duties on textiles

India Budget 2025: CITI Supports Textile Import Tax CutsAhead of India’s Budget 2025, the textile industry has raised alarms with policymakers about losing its global market share due to severe impacts on cost competitiveness. The Confederation of Textile Industry of India (CITI) has stated in its memorandum to the government before the budget that the prices of raw materials are significantly higher than the global market. Polyester staple fibre (PSF) is 26.64 per cent and viscose staple fibre (VSF) 11.98 per cent more expensive for the domestic industry.CITI has presented its case with facts and figures, noting that PSF was priced at ₹76.82 ($0.915) in the global market in October 2024. Meanwhile, the domestic price of the product was noted at ₹97.3 per kg, which was 26.64 per cent higher than the global price. The price difference was noted to be between 26.64 per cent and 36.31 per cent over the last seven months. VSF was priced at ₹141.10 (~$1.680) per kg in the global market and ₹158 per kg in the domestic market, making local prices 11.98 per cent higher than the global market rate. The price difference varied between 11.98 per cent and 18.42 per cent in the last seven months.CITI has stated that Indian domestic raw material prices are significantly higher than international prices, while competitors like Bangladesh and Vietnam have free access to such raw materials. India has imposed quality control orders (QCO) on man-made fibre (MMF) and yarn, which act as a non-tariff barrier on the imports of such raw materials, thus affecting their free flow. This has resulted in a shortage of some specialised fibres and yarns and also impacted domestic prices.The industry organisation stated that the expensive raw materials are severely affecting the cost competitiveness of downstream textile products. Since the downstream segment has the highest employment elasticity in the entire value chain, it is endangering the livelihoods of the millions of people employed in the sector.The government must consider liberalising import policies and reducing the basic customs duty (BCD) on all MMF fibres, filaments, and essential chemicals like PTA and MEG, which are critical in the production of these raw materials.CITI has renewed its demand to remove the import duty on cotton to ensure the availability of cotton at internationally competitive prices. The government could remove the BCD from all cotton varieties.The government has already excluded cotton of staple length exceeding 32.0 mm from the scope of import duty. However, this accounts for only about 37 per cent of the total cotton imports by India, and the import duty still affects about 63 per cent of the imported cotton. It argued that the duty, which was imposed to safeguard the interests of farmers, is not serving its intended purpose, rather hurting the domestic cotton textile value chain.It noted that the Indian cotton industry is importing specialised varieties of cotton such as contamination-free, organic cotton, and sustainable cotton, which are not available domestically. These are being imported under nominated businesses to meet the quality requirements of foreign clients.In India, cotton is predominantly grown by small and marginal farmers who sell their cotton during the peak season. Due to working capital constraints, the industry can only keep limited inventory and must rely on traders for the supply of cotton during the off-season. These traders, during the off-season, often supply cotton based on import price parity, thus making domestic cotton more expensive than international cotton.During the year, Indian cotton fibre prices were typically 15-20 per cent more expensive than international cotton prices, affecting the cost competitiveness of downstream value-added cotton-based textile productsread more :- Cotton farmers struggle with CCI’s strict moisture cap Andhra Pradesh

Cotton farmers in Andhra Pradesh, particularly in Kurnool district, are facing significant challenges due to strict moisture limits imposed by the Cotton Corporation of India (CCI).Under current norms, CCI offers the full Minimum Support Price (MSP) of ₹7,521 per quintal only for cotton with moisture content of 8% or less. If moisture levels fall between 9% and 12%, the price is reduced proportionately. Any cotton exceeding 12% moisture is rejected outright.This has created serious marketing difficulties for farmers. Of the estimated 4 lakh metric tonnes of cotton produced in the district, only about 3.25 lakh quintals have been procured by CCI so far, leaving a substantial quantity unsold.CCI has initiated procurement through 15 ginning mills across market committees in Mantralayam, Adoni, Yemmiganur, and Kodumur. However, due to low prices in the open market, most farmers prefer selling to CCI. Many, however, are unable to do so because their produce fails to meet the moisture criteria.Farmers are also experiencing long waiting times at procurement centres, adding to their distress.Cotton cultivation in Kurnool covered around 1.97 lakh hectares, with an average yield of 15 quintals per hectare, resulting in an estimated total production of 3.72 lakh metric tonnes. By the end of December, CCI had procured 3.24 lakh quintals from nearly 14,000 farmers, amounting to purchases worth ₹240 crore.Despite this, many farmers remain dissatisfied. Some report that only about 40% of their total produce is being accepted by CCI, forcing them to sell the remaining stock in the open market at significantly lower prices.Farmers are now urging the government to relax the moisture norms or provide additional support measures, so that more of their produce can be procured at the full MSP and their financial burden can be reduced.read more :- Rupee depreciates 7 paise to 85.75 against US dollar in early trade

In early trading, the rupee drops 7 paise to 85.75 against the US dollar.The rupee depreciated 7 paise to 85.75 against the US dollar in early trade on Tuesday, dragged down by a strong American currency and sustained outflow of foreign funds. The Indian currency, however, capped the fall on the back of some recovery in domestic equity markets and receding crude oil prices overseas, forex traders said.read more :- Textile Ministry aims for $300 billion market and 6 crore jobs by 2030: Textile Minister

By 2030, the Textile Ministry hopes to create 6 crore jobs and a $300 billion market.Meanwhile, textiles exports from India during October were about 11.56 per cent higher at $1,833.95 million, compared to the same month last yearUnion Minister of Textiles Giriraj Singh stated that the textile ministry is committed to helping the industry to reach the market size of $300 billion in year 2030 and provide employment to 6 crore persons in textile value chain, the Ministry stated in a release on Sunday.Textiles Minister Singh inaugurated the new permanent campus of the Indian Institute of Handloom Technology at Fulia, Nadia, West Bengal.The new campus of the institute has been constructed using state-of-the-art technology in a sprawling campus of 5.38 acres of land with the expenditure of ₹75.95 crore.The building is having modern infrastructure consisting smart classes, digital library, and modern and well equipped testing laboratories.The new campus will be a model learning place and will serve as Center of excellence in the field of handloom and textile technology and cater to the educational needs of the students from West Bengal, Bihar, Jharkhand and Sikkim.Talking to ANI on December 7, Singh stated, "The Textile Department has decided that India's textile market will grow to $300 billion from the current $176 billion. Last October, exports of textiles rose by 11 per cent and that of garments by 35 per cent. I hope under the leadership of PM Modi we will touch new heights."Meanwhile, Textiles exports from India during October were about 11.56 per cent higher at $1,833.95 million, compared to the same month last year.At the same time, apparel exports registered a significant growth of 35.06 per cent during the same period October at $1,227.44 million, the Confederation of Indian Textile Industry said in a report, citing government data.Cumulative exports of textiles and apparel in October 2024 increased by 19.93 per cent compared to October 2023.During April-October, Indian textiles exports registered a growth of 4.01 per cent over the previous year while apparel exports registered a growth of 11.60 per cent during the same time, data showed.India's textile industry is on the brink of expansion, with total textile exports projected to reach $65 billion by FY26, according to Invest India, which is the central government's investment promotion and facilitation agency.According to Invest India, the domestic textile market, valued at around $165 billion in 2022, includes $125 billion from domestic sales and $40 billion from exports. Projections indicate that the market will grow at a compound annual growth rate (CAGR) of 10 per cent to reach $350 billion by 2030read more :- On Monday, the Indian rupee fell 4 paise to close at 85.83 per dollar as against 85.78 on Friday.

The Indian rupee dropped 4 paise on Monday, closing at 85.83 to the US dollar, down from 85.78 on Friday.At the close, the Sensex fell 1,258.12 points or 1.59 per cent to close at 77,964.99 and the Nifty declined 388.70 points or 1.62 per cent to close at 23,616.05. Around 629 stocks advanced, 3329 declined and 109 stocks remained unchanged.read more :- Rupee turns flat at 85.79 against U.S. dollar in early trade

Early trading sees the rupee flatten at 85.79 versus the US dollar.The rupee turned flat at 85.79 against the US dollar in early trade on Monday (January 6, 2025) as positive domestic equity markets failed to boost sentiment amid sustained outflow of foreign capital and elevated level of American currency index.read more :- India Budget 2025: CITI calls for DBT scheme in cotton procurement

India Budget 2025: CITI Demands DBT Program for Cotton PurchasingThe Cotton Corporation of India (CCI) is expected to acquire approximately 25–35 per cent of the cotton produced this season, as it purchases between 50–70 per cent of the daily cotton arrivals. This surge in procurement is attributed to open market prices falling below the minimum support price (MSP).The Confederation of Indian Textile Industry (CITI), the country’s leading industry body, has urged the government to replace the current procurement system with a Direct Benefit Transfer (DBT) scheme. This demand features prominently in CITI’s recommendations for the Union Budget for the 2025–26 fiscal. Union Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025.CITI noted that the government annually announces an MSP for cotton. When market prices drop below the MSP, the CCI intervenes to purchase cotton directly from farmers at the MSP rate. After procurement, CCI stores the cotton in warehouses and sells it in the open market or through auctions.However, CITI has proposed a DBT scheme where farmers can sell their cotton at prevailing market prices. If the selling price falls below the MSP, the difference would be directly transferred to the farmer’s bank account.This scheme would provide more liquidity to cotton farmers, enabling them to sell their produce without waiting for government procurement. Additionally, it would reduce the financial burden and storage costs for CCI, benefitting all stakeholders.CCI has already purchased around 55 lakh bales of cotton this season, with total procurement expected to reach 100 lakh bales. This would account for over 35 per cent of the estimated output of 302 lakh bales (170 kg each). Mills are facing challenges in sourcing cotton from the open market due to CCI’s aggressive buying and may encounter greater difficulties as arrivals decline, leaving CCI as the largest stockholder.CITI also requested that the government, through CCI, ensure sufficient availability of cotton at globally competitive prices. Currently, domestic cotton prices are higher than international prices. If CCI incurs losses, the government should compensate it through subsidies, similar to those provided for other commodities.CITI has also called for support through a Price Stabilisation Fund Scheme to ensure the industry has access to raw materials at reasonable prices. Currently, textile mills can secure working capital from banks for only three months. Consequently, mills typically procure three months’ worth of cotton stock at the start of the season when prices are generally lower. For the remaining months, mills rely on traders and CCI, whose prices fluctuate based on market conditions. This uncertainty makes it challenging for mills to plan their production schedules effectively.To address the issue of price volatility, the government could consider implementing a Cotton Price Stabilisation Fund Scheme. Under this scheme, mills should receive a 5 per cent interest subvention or loans at NABARD rates, recognising cotton as an agricultural commodity. Additionally, banks should extend the credit limit period for cotton procurement from three months to eight months, with a reduced margin money requirement from 25 per cent to 10 per cent.This scheme would enable the industry to procure raw materials at competitive market rates at the beginning of the season and shield mills from price fluctuations during the off-season, facilitating better production planning and stabilityread more :- On Friday, the Indian rupee closed marginally lower at 85.78 per dollar from its previous close of 85.75.

From its previous close of 85.75 to 85.78 per dollar on Friday, the Indian rupee saw a slight decline.The Sensex closed 666.63 points or 0.83 per cent lower at 79,277.08 and the Nifty closed 164.45 points or 0.68 per cent lower at 24,024.20. Around 1865 stocks advanced, 1578 declined and 93 stocks remained unchanged.read more :- Textile industry seeks cheaper raw materials, cotton duty removal, and price stabilisation in budget

The textile sector wants lower-cost raw materials, the elimination of cotton duties, and budgetary price stability.The availability of raw materials at internationally competitive prices, the removal of import duty from the cotton fibre of all varieties, and the cotton price stabilisation fund scheme are among the major demands of the Indian textile & apparel industry ahead of the Union Budget 2025-26.The Indian Textile & Apparel Industry, in its pre-budget memorandum, demanded ensuring the availability of raw materials at internationally competitive prices.Indian domestic raw material prices are significantly higher than international prices. The industry body stated that while competitors like Bangladesh and Vietnam have free access to such raw materials, India has imposed QCO on MMF fibre/yarn, which is acting as a non-tariff barrier on the imports of such raw materials and thus affecting their free flow. It has resulted in a shortage of some specialised fibre/yarn varieties and also impacted domestic prices, it added.It demanded the removal of import duty from the cotton fibre of all varieties, stating that the Indian cotton industry is importing specialised varieties of cotton, such as contamination-free, organic cotton, sustainable cotton, etc., which are not available domestically.The import duty that was imposed to safeguard the interest of farmers is not serving its intended purpose, rather hurting the domestic cotton textile value chain, it stated. The industry body suggested carrying out cotton purchase operations on Minimum Support Price (MSP) through a Direct Benefit Transfer (DBT) mode.The industry body demanded the Cotton Price Stabilisation Fund Scheme to enable the industry to overcome this issue of price volatility.“At present the textile mills are able to avail working capital only for three months from the banks, due to which mills usually procure 3 months of cotton stock at the start of the season when the cotton prices are usually cheaper. For the remaining months, the mills source cotton from the traders and CCI, whose cotton prices vary according to the market conditions; thus, it becomes difficult for the mills to plan their production schedule effectively. To enable the industry to overcome this issue of price volatility, the government may consider coming up with a Cotton Price Stabilisation Fund Scheme,” the industry body added in the memorandum.The industry body said that the fund should be comprised of 5 per cent interest subvention or loan at the NABARD interest rate (cotton being an agricultural commodity), a credit limit period from three months to eight months, and a reduction in the margin money for cotton working capital from 25 per cent to 10 per cent.read more :- Rupee falls 3 paise to 85.78 against US dollar in early trade