The Indian rupee on friday lower 16 paise to close at 87.52 per dollar, while it opened at 87.36 in the morning.At close, the Sensex was down 693.86 points or 0.85 percent at 81,306.85, and the Nifty was down 213.65 points or 0.85 percent at 24,870.10. About 1693 shares advanced, 2208 shares declined, and 143 shares unchanged.read more :- Tamil Nadu farmers demand subsidy after removal of import duty on cotton
Cotton cultivators in Tamil Nadu seek subsidy post removal of 11% import dutyCiting high input costs and drop in productivity of BT cotton due to Tobacco Streak Virus, cotton farmers have sought requisite subsidy from the government to weather the impact of the removal of 11% import duty on cotton by the Central Government. The move, announced by the Union Government till September, is to accord a thrust to the textile sector.Farmers, for their part, fear that the procurement price in Tamil Nadu will witness a free fall from the existing extent of ₹ 6,500 per quintal.Though the Central Government has fixed the Minimum Support Price at ₹ 7,710, the procurement price in Tamil Nadu has been less due to absence of centralised procurement.Unlike in other States where procurement is carried out by the Cotton Corporation of India, farmers in Tamil Nadu have been put to a disadvantage due to the reluctance of the State Government to foot the bill for transport of cotton from the regulated sales outlets to the milling plants, according to the cultivators.“Farmers are apprehensive that the selling price of cotton in Tamil Nadu could fall by up to ₹2,000 per quintal. The onus is on the Central Government to save the cotton farmers through providing the requisite subsidy to stave off losses,” Founder of Tamizhaga Vivasayigal Padhukappu Sangam, Easan Murugasamy said.While the farmers are not against providing a fillip to the industrial sector, the Central and State governments should, all the same, safeguard interests of farmers, Mr. Murugasamy emphasised.According to TNAU scientists working with cotton farmers, the acreage is already shrinking due to low returns.In West Tamil Nadu, cotton production acreage is the highest in Salem at close to 9000 hectares, followed by Dharmapuri (nearly 4,000 ha), Namakkal (less than 1,900 ha), and Krishnagiri (less than 1,400 ha). The crop is grown on less than 1,000 hectares in Tiruppur district and is raised in a meagre extent of a little over 350 ha in Coimbatore district.The picking cost alone is ₹20 per kg. Cotton crop, in general, in Tamil Nadu, is 70% rainfed, and farmers have chosen to go for alternative crops, a TNAU scientist said, indicating that the scope is very limited for cotton cultivation acreage to improve, given the evolving scenario.read more :- "SKM protests removal of duty on cotton import, demands withdrawal"
SKM slams Centre’s scrapping of duty on cotton imports, urges immediate rollbackHyderabad: The Samyukt Kisan Morcha (SKM) condemned the decision of the Finance Ministry to immediately abolish the 11% import duty and Agricultural Infrastructure Development Cess (AIDC) on cotton.The notification, effective from August 19, is valid until September 30, 2025. SKM has condemned the decision, which has been justified by the government as being “in the public interest”, as a “death knell” for cotton growers already grappling with low prices and mounting debt. SKM has accused Prime Minister Narendra Modi of reneging on his promises to farmers and demanded clarity on where his “top priority” lies. The union argues that the removal of import duty will flood the domestic market with cheaper cotton, driving down prices and pushing lakhs of cotton farming families into deeper financial distress. They point out that cotton-growing regions already record the highest number of farmer suicides in the country, and this move could exacerbate the crisis.Despite repeated demands, the Modi government has never implemented the Minimum Support Price (MSP) formula of C2+50% for cotton farmers. For the 2025 Kharif season, the Commission for Agricultural Costs and Prices (CACP) announced an MSP of Rs 7,710 per quintal—Rs 2,365 short of the Rs 10,075 rate under the C2+50% formula. SKM claims this gap reflects a systemic neglect of cotton farmers’ welfare. India, with 120.55 lakh hectares under cotton cultivation, accounts for 36% of the global cotton area. Maharashtra leads in cotton acreage, followed by Gujarat and Telangana. Notably, 67% of India’s cotton farming is rainfed, making it highly vulnerable to market and climate shocks. In response to the notification, SKM has called on cotton farmers nationwide to organize village-level meetings, pass resolutions, and send them to the Prime Minister demanding the immediate withdrawal of the duty abolition and the declaration of MSP at Rs 10,075 per quintal. The union also reminded the government of its unfulfilled promise from the BJP’s 2014 election manifesto to ensure fair MSP for farmers.read more :- Rupee open Falls 10 Paise to 87.36/USD
Indian rupee open 10 paise down at 87.36/USD ahead of Powell speech at Jackson HoleThe local currency opened at 87.36 against the US dollar, as compared to 87.26 against the greenback at previous close.read more :- Big change in GST: 12% and 28% GST slabs will be abolished
12% and 28% GST slabs will be abolished, GOM accepted the proposal of the Center.The government has taken a big step towards simplifying the tax system. Meanwhile, a proposal has been presented to abolish the GST slabs of 12% and 28%. This means that now both these slabs will be abolished and only 5% and 18% slabs will remain.The government is preparing to further simplify the GST (Goods and Services Tax) system. Recently, a GoM meeting was held, in which consent was given to make the GST slab proposed by the Center reasonable. In this meeting, the finance ministers of the states have supported reducing the existing four slabs to only two slabs. This means that now the slabs of 12% and 28% will be abolished and only 5% and 18% slabs will remain.Will there be only two GST slabs now?This six-member group of ministers, headed by Bihar Deputy Chief Minister Samrat Chaudhary, has decided that the GST rates will be divided into only two slabs. In this, a rate of 5% will be applicable on good and essential goods, while most standard goods and services will be taxed at 18%. Apart from this, luxury items will remain in the slab of 40%.After this decision, about 99% of the items which were earlier at the rate of 12% will now come in the slab of 5%. At the same time, about 90% of the items which were earlier in the slab of 28% will be kept at the rate of 18%. This will make the tax system more simple and clear, which will benefit the general public as well as traders.The GoM has also suggested that luxury cars should be taxed at the rate of 40%. Along with this, some harmful items will also be kept in this slab. The Finance Ministers of Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala in the GoM have also supported this proposal. He said that this will bring transparency in the tax system and the number of tax payers will increase.Statement of Finance Minister Nirmala SitharamanFinance Minister Nirmala Sitharaman said in this meeting that the general public will benefit by making tax rates reasonable. She said that this new system will make the tax system simple and transparent. She also said that this will reduce the tax rate on many items, which will reduce the prices of goods and provide relief to consumers.read more:- Rupee fell 26 paise to close at 87.26
The Indian rupee on thursday lower 26 paise to close at 87.26 per dollar, while it opened at 87.00 in the morning.At close, the Sensex was up 142.87 points or 0.17 percent at 82,000.71, and the Nifty was up 33.20 points or 0.13 percent at 25,083.75. About 2025 shares advanced, 1886 shares declined, and 145 shares unchanged.read more :- CCI: Ready to deal with MSP hike
CCI said, ready to deal with any possibility of increase in MSPAmid concerns that cotton prices will come under pressure after the removal of import duty till September 30, state-run Cotton Corporation of India (CCI) said it is fully prepared to intervene in the market during the new season starting from October."We are ready. We are fully prepared to deal with any possibility of increase in operations," CCI Chairman-cum-Managing Director Lalit Kumar Gupta told BusinessLine. "On behalf of the government, we can assure farmers that they should not panic and there should be no distress sale," he said.Gupta said the duty cut has been done on the demand of the industry and the recommendation of the ministry and stakeholders, but it will not affect the interests of farmers as there is no arrival of cotton at present. He said, "This step will help the industry when there is no arrival." Boost to textile industryAccording to the textile industry, the duty cut on cotton imports will increase the competitiveness of Indian exporters, who are facing a 50 per cent duty in the US, their biggest market. Domestic cotton prices are currently 10-12 per cent higher than global prices. However, farmers and farmer groups have expressed concern that the removal of duty will hit their income.CCI had procured about one-third of the crop at minimum support price (MSP) during 2024-25, which brought stability to the market as raw cotton prices remained below the MSP level during most marketing seasons. Gupta said that out of the 1 crore bales (170 kg each) procured during the current 2024-25 season, CCI currently has a stock of 27 lakh bales. "Our target is to sell the stock completely before the new season," he said.Following the duty cut, which made cheaper cotton available to Indian textile mills, CCI has reduced the minimum price for its cotton sales by ₹1,100 per candy (356 kg). "We have corrected the prices," Gupta said. He further added that this was done in response to the market.On Wednesday, CCI had reduced the selling price by ₹500 per candy, and by ₹600 on Tuesday. Going forward, the pricing of CCI cotton will be based on day-to-day market conditions, he said.Higher MSPFor the 2025-26 cotton season, the government has announced an 8 per cent increase in MSP for medium staple variety to ₹7,110 per quintal and for long staple to ₹8,110 per quintal. With the correction in prices, the gap between the market price and MSP would have increased."Our role in the market will be much more important to protect farmers. Right now, we anticipate that procurement may exceed last year's level. We are prepared to deal with any situation, more than any previous year. We have no infrastructure limitations or constraints," Gupta said. He further added that during the Covid period, CCI had procured 2 crore bales of cotton.Farmers across the country have sown cotton in about 107.87 lakh hectares (lh) this year, which is about three per cent less than last year's 111.11 lh till August 19. This decline has been seen mainly in top producing states like Gujarat and Maharashtra, where a section of farmers are turning to alternative crops like groundnut, maize and pulses. However, southern states like Karnataka, Telangana and Andhra Pradesh have seen an increase in acreage. According to the trade, the crop condition is good, and higher yields are expected to compensate for the decline in acreage. According to the third advance estimate, cotton production during 2024-25 stood at 306.92 lakh bales.Further, Gupta said that due to late rains across the country, cotton arrivals may get delayed, which will start in October and improve from November. He also said that MSP procurement will be a paperless process during 2025-26, as CCI will soon launch a new mobile app through which farmers can self-register and book slots to bring their produce to procurement centres.read more :- Textiles, diamonds and chemicals MSMEs most affected by US tariffs: Crisil
MSMEs in textiles, diamonds and chemicals to be most hit by US tariffs: CRISIL IntelligenceThe imposition of higher tariffs by the US will significantly impact the micro, small and medium enterprise sector, which accounts for around 45% of India's exports, while MSMEs in textiles, diamonds and chemicals are likely to be the most hit, a report by CRISIL Intelligence said.The US levies ad valorem duty of 25% on Indian goods. However, it has imposed an additional 25% tariff which will be effective from August 27 this year. This brings the total tariffs to 50%, which will have a meaningful impact on several sectors in India, the report said.Textiles, gems and jewellery, which account for 25% of India's exports to the US, are likely to be most affected. The MSMEs have more than 70% share in these sectors and will be hit hard, the report said.Another sector which is likely to face the heat is chemicals, where MSMEs have a 40% share.The gems and jewellery sector at Surat in Gujarat, which dominates diamond exports, will feel the tariff shock, the report said. Diamonds account for over 50% of the country's gems and jewellery exports, and the US is a major consumer, according to the report.In chemicals too, India faces competition from Japan and South Korea which are subject to lower tariffs.In steel, the US tariffs are expected to have a negligible impact on the MSMEs as the units are mostly engaged in re-rolling and long products. The US primarily imports flat products from India.In the textiles sector, the ready-made garments are expected to lose ground in the US compared with peers like Bangladesh and Vietnam which face lower tariffs.read more :- INR Up 07 Paise, Opens at 87.00
Rupee opens 7 paise up at 87.00 against the dollarThe rupee opened 7 paise up on August 21 at 87.00 against the US dollar after ending the previous session at 87.07.read more :- Rupee strengthened by 10 paise against the dollar and closed at 87.07.
The Indian rupee on wednesday higher 10 paise to close at 87.07 per dollar, while it opened at 87.17 in the morning.At close, the Sensex was up 213.45 points or 0.26 percent at 81,857.84, and the Nifty was up 69.90 points or 0.28 percent at 25,050.55. About 2210 shares advanced, 1685 shares declined, and 155 shares unchanged.read more :- India's current account deficit to double in FY26 Q2: ICRA
India's current account deficit to double in Q2 FY26 amid rising imports: ICRA.According to the Investment Information and Credit Rating Agency (ICRA), India's current account deficit (CAD) is projected to double to $13-15 billion in the second quarter (Q2) of FY26, up from an estimated $6-8 billion in Q1 FY26.Meanwhile, ICRA in its August 2025 report said India's current account deficit is likely to remain stable at 0.6 per cent of GDP in FY26, in line with FY25, although risks remain due to tariff-related developments.ICRA's estimate comes after India's merchandise exports recorded a 7.3 per cent annual growth in July 2025 to $37.2 billion, following a marginal 1.7 per cent growth in Q1 (Q1) of FY26. In contrast, merchandise imports witnessed a broader and relatively sharper growth of 8.6 per cent in July 2025, reaching $64.6 billion.However, India's exports to the US grew in double digits for the seventh consecutive month in July 2025, taking the country's share to nearly 22 per cent from 19 per cent a year ago. The report further said that given the uncertainty over possible storage and duties in some categories, growth is likely to remain slow in the near term.According to the Ministry of Commerce and Industry, India's merchandise trade includes export of ready-made garments of all types of textiles, engineering goods, petroleum products, electronic goods, drugs and pharmaceuticals, gems and jewellery, and a wide range of other items.read more :- Textile mills welcome withdrawal of import duty on cotton.
Textile mills welcomed the removal of import dutyTextile mills across the country, and mainly those in the southern States, have welcomed the Union government’s decision to withdraw the 11 % import duty on cotton till September 30.The duty came into effect on February 2, 2021 when India produced 350 lakh bales of cotton annually as against the local demand of 335 lakh bales. The production now is 294 lakh bales as against the demand of 318 lakh bales.According to the Southern India Mills’ Association, the government exempted all varieties of cotton from import duty from April 14, 2022 to September 30, 2022, later extending the exemption until October 31, 2022. This relief supported the industry in capitalising the pent-up demand in the post-COVID period, enabling it to achieve a business size of $ 172 billion, including $ 45 billion in exports.Since domestic production of Extra-Long Staple (ELS) cotton stood at five lakh bales compared with the annual requirement of 20 lakh bales, the government exempted ELS cotton from import duty with effect from February 20, 2024. The industry has been urging the government to remove the import duty ideally, or at least during the off-season (April 1 to September 30) for all varieties of cotton.S.K. Sundararaman, chairman of the Association, said the duty exemption will throw opportunities to increase exports. Though direct exporters can take advantage of Advance Authorisation Scheme and import duty free cotton, the predominantly MSME and fragmented nature of the industry requires imported cotton to cater to the nominated business and also meet the long-term contracts in the domestic and export marketsDuty exemption during off-season till 2030 is essential as the Mission for Cotton Productivity with the budget outlay of ₹5,900 crores will take five to seven years to reach self sufficiency in cotton, he added.The Confederation of Indian Textile Industry (CITI) chairman Rakesh Mehra said India’s textile sector is dominated by cotton and the cotton value chain contributes to around 80% of total textile exports. India aims to more than double textile and apparel exports to $100 billion by 2030.The duty exemption also covers cotton in transit, as the taxable event for determining the rate of duty is the date of filing of the Bill of Entry, after the goods have entered the Indian port. In cases where the Bill of Entry has been filed in advance (as permitted by Customs for faster clearance prior to the arrival of goods), the same can be withdrawn and re-filed afresh at the earliest, that is, before the Out-of-Charge Order is issued for the imported cotton, he said.read more :- Rupee open Declines 21 Paise to 87.17 per Dollar
Rupee opens 21 paise down at 87.17 against dollar as Asian currencies slipThe rupee opened at 87.17 against the US dollar after ending the previous session at 86.96, its biggest daily gain in a month as it regained the 86 level.read more :- INR Gains 29 Paise, Closes at 86.96 per Dollar
The Indian rupee on tuesday higher 29 paise to close at 86.96 per dollar, while it opened at 87.25 in the morning.At close, the Sensex was up 370.64 points or 0.46 percent at 81,644.39, and the Nifty was up 103.70 points or 0.42 percent at 24,980.65. About 2505 shares advanced, 1375 shares declined, and 159 shares unchanged.read more :- Brazil cotton sales pick up; ICAC sees higher 2025/26 output
Brazil cotton sales jump; ICAC forecasts production growth in 2025/26Insights:▪️Brazil's cotton market saw higher liquidity in mid-August as prices eased to May levels, boosting domestic sales.▪️The CEPEA/ESALQ Index fell 2.9 per cent to BRL 4.0140/lb by Aug 15.▪️Harvest progress lagged, with 33.56 per cent complete by Aug 7, below averages.▪️Globally, ICAC projects 2025/26 output at 25.91m tons, up 1.55 per cent, with consumption at 25.56m tons, slightly below supply.Liquidity in Brazil’s domestic cotton market increased in mid-August, with more trades of term contracts as both buyers and sellers sought to close deals. Prices eased slightly due to lower export parity, returning to levels last seen in May 2024, making domestic sales more attractive, according to Centre for Advanced Studies on Applied Economics (CEPEA).The CEPEA/ESALQ Index (payment in 8 days) dropped 2.9 per cent between July 31 and August 15, closing at BRL 4.0140 per pound on August 15.According to Abrapa, 33.56 per cent of Brazil’s 2024/25 cotton crop had been harvested by August 7. In Mato Grosso, the country’s top producer, the harvest reached 27 per cent, while in Bahia it stood at 40.56 per cent, CEPEA said in its latest fortnightly report on the Brazilian cotton market.Conab data showed 29.7 per cent of the national crop was harvested by August 2, lagging behind 36.7 per cent a year earlier and the five-year average of 46.1 per cent. In Mato Grosso, 20.9 per cent was harvested, well below the 31.8 per cent recorded last year and the 41.4 per cent five-year average.Globally, the International Cotton Advisory Committee (ICAC) projects cotton acreage in 2025/26 at 31.3 million hectares, with average yields of 827 kilos per hectare. World production is expected to reach 25.912 million tons, a 1.55 per cent increase from the previous season.Consumption is estimated at 25.564 million tons, 0.26 per cent higher than in 2024/25, though still 1.34 per cent lower than global supply.read more :- India removes duty on cotton imports from US
India blinks, removes duty on cotton imports in trade thaw with US.New Delhi: In a move seen as breaking the ice in strained trade relations with the US, the Indian government late on Monday removed the customs duty and agriculture cess on cotton imports, a step that industry observers believe could ease tensions and create fresh room for engagement.Through a notification issued by the ministry of finance, the Central Board of Indirect Taxes and Customs (CBIC) said all imports under heading 5201—covering raw cotton—will be exempt from duties between 19 August and 30 September. The decision is expected to directly benefit American exporters, who have been pressing for easier market access in India after Washington increased tariffs on Indian products earlier this year.The development comes after months of back-and-forth between the two sides, with India holding its ground on sensitive sectors such as agriculture and dairy in bilateral trade talks. By offering temporary relief on cotton, New Delhi appears to be signaling flexibility without compromising on its core red lines.The US team of negotiators, who were scheduled to visit New Delhi for the sixth round of talks on 25 August, has cancelled its visit, and no fresh date has been announced.Notably, the 25% reciprocal tariffs on Indian exports imposed by US President Donald Trump took effect on 7 August may double to 50% on 27 August when the additional tariffs linked to New Delhi’s oil trade with Russia come into force.Before the latest exemption, cotton imports into India attracted a combined duty of around 11%.“It is a calibrated gesture that addresses US concerns while safeguarding domestic sensitivities,” said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), a think tank. Srivastava added that the short exemption window allows the government to retain leverage in ongoing negotiations.The move is also being read against the backdrop of India’s own supply needs. Cotton availability in the domestic market has been tight, with industry bodies repeatedly flagging the risk of higher yarn prices and downstream cost pressures in textiles. By permitting duty-free imports, the government aims to cool raw material prices ahead of the festival season, when demand for garments typically spikes.For the US, the exemption is significant. With China slapping extra duties on American cotton, India has emerged as a promising alternative market. Industry leaders said the duty removal could help bridge some of the recent mistrust. “Cotton was a sticking point in the discussions. This move can inject goodwill into the dialogue and perhaps pave the way for broader tariff concessions in textiles,” said an executive with a leading apparel exporters’ association.“CITI (Confederation of Indian Textile Industry) has long been requesting that the import duty on cotton be removed to help domestic cotton prices align with international prices. We therefore greatly welcome this measure taken by the authorities, even though the relief is only available temporarily,” said CITI secretary general Chandrima Chatterjee.According to the Cotton Association of India, imports surged to 2.71 million bales in FY25, compared with 1.52 million bales in FY24 and 1.46 million bales in FY23. Each bale is equivalent to 170kg.India’s cotton output dropped from about 33.7 million bales in 2022-23 to 32.5 million bales in FY24 and an estimated 30.7 million bales in FY25, according to agriculture ministry data. (The cotton production year runs from October through September.)According to the US department of agriculture, China is the world’s largest producer of cotton, with its 32 million bales in 2024/2025, accounting for 26% of global production. India stood second with its 25 million bales, accounting for 21% of global cotton production.read more :- INR Opens Stronger by 10 Paise at 87.25
| title | Created At | Action |
|---|---|---|
| INR Drops 16 Paise, Closes at 87.52 per Dollar | 22-08-2025 22:41:37 | view |
| Tamil Nadu farmers demand subsidy after removal of import duty on cotton | 22-08-2025 21:33:28 | view |
| "SKM protests removal of duty on cotton import, demands withdrawal" | 22-08-2025 18:21:20 | view |
| Rupee open Falls 10 Paise to 87.36/USD | 22-08-2025 17:22:26 | view |
| Big change in GST: 12% and 28% GST slabs will be abolished | 22-08-2025 00:18:33 | view |
| Rupee fell 26 paise to close at 87.26 | 21-08-2025 22:45:46 | view |
| CCI: Ready to deal with MSP hike | 21-08-2025 18:55:17 | view |
| Textiles, diamonds and chemicals MSMEs most affected by US tariffs: Crisil | 21-08-2025 18:34:59 | view |
| INR Up 07 Paise, Opens at 87.00 | 21-08-2025 17:25:11 | view |
| Rupee strengthened by 10 paise against the dollar and closed at 87.07. | 20-08-2025 22:43:35 | view |
| India's current account deficit to double in FY26 Q2: ICRA | 20-08-2025 18:51:48 | view |
| Textile mills welcome withdrawal of import duty on cotton. | 20-08-2025 17:49:07 | view |
| Rupee open Declines 21 Paise to 87.17 per Dollar | 20-08-2025 17:21:48 | view |
| INR Gains 29 Paise, Closes at 86.96 per Dollar | 19-08-2025 22:48:45 | view |
| Brazil cotton sales pick up; ICAC sees higher 2025/26 output | 19-08-2025 22:06:07 | view |
| India removes duty on cotton imports from US | 19-08-2025 18:11:12 | view |
