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This evening, the rupee held steady at 83.97 against the US dollarAt the close of trading, the BSE Sensex plunged 808.65 points or 0.98 per cent to close at 81,688.45. The NSE's 50-share index, the Nifty, fell 200.25 points or 0.79 per cent to close at 25,049.85.Read More :-  Maharashtra: 30,000 quintals of cotton arriving in the market every day

Maharashtra: daily arrivals at the market of 30,000 quintals of cottonCurrently, 30,000 to 32,000 quintals of cotton are arriving in the country's markets every day, which is less than last season. Experts believe that due to the decrease in the arrival of cotton, its prices are improving.Last year, in early October, six to seven thousand bales of cotton were being imported into the country every day, but this year this figure is much less. The main reason for this is the decrease in cotton cultivation in North India this year. Currently, cotton is being imported only from North India, while cotton picking has started recently in states like Gujarat and Madhya Pradesh. Due to this, the arrival of cotton is low across the country, due to which there is no huge fall in prices. In the next seven to eight days, the arrival of cotton may increase to 50,000 to 55,000 quintals, and it is likely to increase further in November. However, farmers have very low stock of cotton at this time.The arrival of cotton is still low in Khandesh and other parts of the state, due to which the purchase of cotton has not started in the villages. Differences in cotton prices are being seen in different states and regions. The price of quality cotton in Khandesh is currently Rs 8,100 per quintal, while new cotton is being purchased at the rate of Rs 7,500 per quintal.Low stock with farmersAt present, cotton imports in the country have come to a standstill, and farmers have also not yet started storing cotton on a large scale. Due to drought conditions this year, cotton production per acre has been limited to only 80 kg to one quintal. Apart from this, heavy rains in Maharashtra, Gujarat and Madhya Pradesh have also damaged the cotton crop, which has seen a decline in production.Read More :- India braces for above – average rains, rising temperatures in October

Early trading has the rupee flattening at 83.96 against the US dollar.Rupee paused its slide and traded flat at 83.96 against the US dollar in early deals on Friday amid retreating crude oil prices and a weak American currency against major Asian rivals.Read More :> India braces for above – average rains, rising temperatures in October

October will bring above-average precipitation and temperatures in IndiaIndia is likely to receive above average rainfall in October after unusually high volumes for the past three months, a senior weather department official said on Tuesday, which could damage summer-sown crops ready for harvesting.October's rainfall is projected at more than 115% of the 50-year average, said Mrutyunjay Mohapatra, director-general of the India Meteorological Department (IMD).Farmers have begun harvesting summer-sown crops such as rice, cotton, soybeans, corn, and pulses. Rainfall during this period could disrupt the harvesting and damage the crops.Even in September above-average rainfall, arising from a delayed monsoon withdrawal, damaged some summer-sown crops in certain regions of India.India received 11.6% more rainfall than average in September, following 9% and 15.3% above-average rainfall in July and August respectively, the IMD data showed.The weather department is predicting heavy rain in the first half of October, right when most farmers are harvesting their crops. This has farmers really worried," said a Mumbai-based dealer with a global trade house.However, the rains in October may also enhance soil moisture, benefiting the planting of winter-sown crops such as wheat, rapeseed, and chickpea.The withdrawal of the monsoon started nearly a week later than usual this year, but it is likely to fully withdraw from the country around mid-October, Mohapatra said.India's annual June-September monsoon provides almost 70% of the rain it needs to water farms and replenish reservoirs and aquifers, and is the lifeblood of a nearly $3.5 trillion economy. Without irrigation, nearly half of Indian farmland depends on the rains that usually run from June to September.In October, maximum and minimum temperatures in most parts of the country are likely to be above normal, Mohapatra said.Read More :- ICF Appeals to Centre to Remove Cotton Import Duty

This evening, the rupee fell 15 paise to settle at 83.97 against the US dollarAt the close of trading, the BSE Sensex plunged 1,769.19 points or 2.10 per cent to close at 82,497.10. The NSE's 50-share index, Nifty, fell 546.80 points or 2.12 per cent to close at 25,250.10.Read More :-  Vidarbha Cotton Association Seeks Mandi Cess Waiver and GST on Cotton Seed Cake (khal)

The Vidarbha Cotton Association wants GST on cotton seed cake (khal) and a waiver of the mandi cess.The Vidarbha Cotton Association (VCA), representing farmers and ginners in the region, has called attention to key issues affecting the cotton industry. During Union Textile Minister Giriraj Singh’s recent visit to Nagpur, the association submitted a charter of demands outlining their concerns.One of the main requests is for the waiver of the mandi cess on cotton, particularly for cotton transported directly to factories without passing through mandi premises. The VCA argued that farmers receive minimal benefits from mandi services in such cases, as all necessary transactions occur at the factory. The association claims that this mandi tax, which varies across different mandis, imposes an unnecessary burden on farmers, leading to reduced cotton prices. "Waiving the mandi cess would enable farmers to secure better prices for their cotton, thereby improving their income," the letter stated.Additionally, the VCA is advocating for the imposition of a 4% GST on cotton seed cake. Currently exempt from GST, cotton seed cake is a key input in agriculture and animal husbandry, but its tax-free status complicates tax procedures for businesses. The association believes that imposing a 4% GST would streamline tax operations, promote transparency, and align with a more unified tax structure.* The VCA also pointed out that the absence of GST on cotton seed cake triggers the reverse charge mechanism (RCM) on cotton, creating cash flow challenges for traders and ginners, who face reduced working capital after paying GST under RCM. Introducing a 4% GST on cotton seed cake would eliminate the need for RCM on cotton, easing financial strain and simplifying operations for traders and ginners, according to the association.Read More :- Bumper arrival of cotton in Khargone market, farmers got price up to Rs 7250

The rupee fell 11 paise to open at 83.93 against the dollar in early tradeRupee opened at 83.91 per dollar in early trade at the Interbank Foreign Exchange market. After initial deals, it reached 83.93 per dollar, which shows a decline of 11 paise from the previous close price.Read More :- ICF Appeals to Centre to Remove Cotton Import Duty

This evening, the rupee ended the day 3 pip down versus the US dollar at 83.82At the close of trading, the BSE Sensex fell 33.49 points or 0.04 per cent to close at 84,266.29. The NSE's 50-share index, Nifty, fell 13.95 points or 0.054 per cent to close at 25,796.90.Read More :-  Bumper arrival of cotton in Khargone market, farmers got price up to Rs 7250

ICF Requests the Center to Eliminate the Import Tax on CottonThe Indian Cotton Federation (ICF), formerly known as the South India Cotton Association, held its 45th Annual General Meeting at GKS Cotton Chambers on September 29, 2024.J. Thulasidharan was re-elected as President of ICF for 2024–2025, with Adhitya Krishna Pathy and P. Nataraj continuing as Vice Presidents. Nishanth A. Asher and Chetan H. Joshi retained their positions as Honourary Secretary and Honourary Joint Secretary, respectively.During the meeting, J. Thulasidharan highlighted that the previous fiscal year was one of the most challenging due to a decline in textile demand. However, the industry is optimistic about the upcoming cotton season (2024–25), expecting higher yields compared to the previous season. Current estimates suggest the cotton crop could range between 330 to 340 lakh bales, which is a significant increase from last year’s figures. Incentives and a rise in the Minimum Support Price (MSP) have encouraged farmers to focus on improving both yield and quality.Thulasidharan pointed out that India’s raw material (cotton) prices are higher than global rates due to the prevailing import duty. He urged the government to address this issue to benefit both farmers and the industry. Lower interest rate financing and securing raw material availability were emphasized as critical for the sector’s growth.He also mentioned that Union Textile Minister Giriraj Singh, during a July 2024 meeting of the Textile Advisory Group (TAG), promised to review the parity between domestic and global cotton prices and explore reintroducing a new strain of BT cotton to enhance yields.Nishanth Asher reiterated that to maintain competitiveness, the Government must play a central role in addressing challenges such as price volatility, supply chain issues, and trade barriers. He emphasized that ICF would continue advocating for policies that support farmers, businesses, and trade.The federation’s primary appeal to the Union Government was to remove the import duty on cotton. Thulasidharan explained, "India's cotton prices are currently higher than global rates due to the import duty. Removing this duty would create a level playing field and help the Indian textile industry grow."Read More :> Bumper arrival of cotton in Khargone market, farmers got price up to Rs 7250

Surge in cotton prices in Khargone market, with farmers receiving up to Rs 7250Khargone: These days, there is a huge arrival of white gold, i.e. cotton in the major cotton market of Madhya Pradesh, due to which the faces of the farmers are blooming. The prices of cotton in the market have reached Rs 7250 per quintal, due to which there is enthusiasm among the farmers. On Monday, a record arrival of 7000 quintals of cotton was recorded in the market, in which high quality cotton was sold at high prices. Other crops like wheat, maize, and soybean also got fair prices, but their arrival was relatively less.Major cultivation of cotton in Khargone districtCotton is cultivated on a large scale in Khargone district, where farmers grow cotton on about 2 lakh 18 thousand hectares of land. According to market sources, on Monday, farmers arrived with 7000 quintals of cotton through 25 bullock carts and 470 other vehicles. The maximum price of high quality cotton was Rs 7250 per quintal, while the minimum price was recorded at Rs 4000 per quintal. The average price of cotton was Rs 5500 per quintal, which gave good income to the farmers.Read More :- Gujarat High Court Nullifies GST Orders on Cotton Seed Oil Cakes

Cotton Seed Oil Cakes: GST Orders are nullified by the Gujarat High CourtThe Gujarat High Court has set aside tax demands related to the supply of cotton seed oil cakes to traders, providing relief to the petitioner, a partnership firm involved in extracting and supplying cotton seed oil cakes.The petitioner argued that the product, known as "khol" in Gujarat, is used exclusively as cattle feed, with no other commercial purpose. However, GST officials rejected this claim during an audit, contending that the GST exemption applied only if the cakes were supplied directly for cattle feed, not for further trade. They claimed the petitioner had failed to prove that the cakes were specifically used as cattle feed, leading to short-payment of GST.The petitioner countered by asserting that it had sold the cakes for cattle feed purposes and was not responsible for verifying their ultimate use after sale. Therefore, it had rightly claimed the GST exemption.The court ruled in favor of the petitioner, stating that the supply to traders alone does not determine GST liability, as the end use of the product was not disputed. The ruling is particularly relevant in light of a government notification issued on September 29, 2017, exempting cotton seed oil cakes from GST. However, authorities had argued that the exemption was not retroactive, as the case involved transactions from an earlier period.Sandeep Sehgal, a tax partner at AKM Global, noted that the decision brings considerable relief to businesses within the cattle feed supply chain, ensuring they can claim GST exemption irrespective of whether the product is supplied to traders or directly to consumers.Read More :> Maharashtra Govt Distributes ₹2,399 Cr As Subsidy To Cotton & Soybean Farmers Ahead Of Assembly Elections