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 Rupee opens 05 paise up at 90.71/USD Indian rupee opened higher at 90.71 per dollar on Tuesday versus previous close of 90.76.read more :- CAI demands zero duty on ELS cotton

Zero duty on ELS cotton to boost textiles exports, says CAIThe Indian government’s decision to move extra long staple (ELS) cotton to the First Schedule, effectively reducing customs duty to zero, is expected to boost India’s high-value textile and apparel exports, according to the trade body Cotton Association of India (CAI). The Budget 2026-27 has moved ELS cotton to the First Schedule (zero customs duty).Vinay N Kotak, Chairman, CAI said the Budget is designed as a futuristic, growth-oriented blueprint, aimed at establishing India as a global manufacturing hub and securing its position as the world’s third largest economy.“One of the important changes in the Customs Schedule, which is aimed at providing relief to enable manufacturing is to move Extra Long Staple Cotton to First Schedule (zero Customs Duty). This will boost exports of our finished textile products and increase India’s share in the world textile markets,” Kotak said in a statement. India imports around 5-7 lakh bales of ELS cotton mainly from USA and Egypt, he said.Improving accessCotton with fibre length of 33 mm and above is called ELS cotton, a key input for manufacturing premium yarns, fine fabrics and high-end garments. Since domestic production of ELS cotton is limited, Indian textile manufacturers depend on imports to meet quality requirements for export markets. The removal of import duty is expected to lower raw material costs and improve access to high-quality fibre, enhancing the global competitiveness of Indian exporters.The ELS cotton is grown in approximately 2 lakh hectares, predominantly under the DCH-32 variety in parts of Karnataka such as Dharwad, Haveri and Mysuru districts, also in Coimbatore, Erode and Dindigul in Tamil Nadu and in Ratlam in Madhya Pradesh.read more :- Last date for cotton MSP purchase 10 February

Cotton purchase at support price till 10th FebruaryHanumangarh Cotton will be procured by Cotton Corporation of India (CCI) at support price till February 10. In this regard, Director of Agricultural Marketing Department, Jaipur, Rajesh Kumar Chauhan has issued a letter to the regional joint directors and deputy directors of the department.Instructions have been given in the letter that all the cotton farmers registered on Cotton Kisan Mobile App of Cotton Corporation of India should be made aware to book slots and sell their cotton before the last date of purchase. Also, it has been asked to ensure that farmers can sell their cotton before February 10.

The Indian rupee lower 21 paise to close at 90.76 per dollar on Monday, compared to its opening price of 90.55 in the morning.At close, the Sensex was up 485.35 points or 0.58 percent at 84,065.75, and the Nifty was up 173.60 points or 0.68 percent at 25,867.30. About 3003 shares advanced, 1181 shares declined, and 152 shares unchanged.read more :- CITI welcomes tariff cut, clarity on cotton

CITI welcomes visibility on US tariff reduction, seeks clarity on cottonThe Confederation of Indian Textile Industries (CITI) heartily welcomes the reduction of US tariffs to 18% with effect from February 7, 2026. CITI expresses its heartfelt gratitude to US President Mr. Donald Trump and Indian Prime Minister Mr. Narendra Modi for successfully resolving the tariff issue."The biggest problem for the Indian textile and apparel sector was earlier the 50% tariff imposed by the US on Indian goods, as the US is India's largest foreign market. Now this tariff has been removed, allowing India's textile and apparel exports to compete effectively in the US again. With the 18% tariff, we will also get a slight tariff advantage compared to our nearest competitors, Vietnam and Bangladesh," said Mr. Ashwan Chandran, President, CITI.“This extremely positive development is a major boost to India's target of $100 billion textile and apparel exports by 2030, the 'Make in India' initiative and employment generation in the textile and apparel industry driven by small and medium enterprises (MSMEs). CITI is extremely grateful to Honorable US President Mr. Donald Trump, Honorable Prime Minister Shri Narendra Modi and all the Ministers and senior officials involved in the US and India for this achievement.”China, Vietnam, India, and Bangladesh are the largest exporters of textiles and apparel goods to the US. The US tariff rate on both Vietnam and Bangladesh is set at 20%. An analysis by CITI of US Office of Textiles and Apparel (OTEXA) data showed that US imports of textiles and apparel from India declined by 31.4% in November 2025 compared to November 2024.CITI president said the industry body was waiting for more clarity on cotton. There is extensive coordination between the United States and India on cotton. India's textile and apparel exports are mainly dependent on cotton.The Joint Statement of the United States and India on the Framework for an Interim Agreement on Reciprocating and Mutually Beneficial Trade (Interim Agreement) states: "India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers grains (DDG), red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits, and other products."CITI believes that removal of import duty on cotton of all varieties will reduce the gap between domestic and global prices and help restore the competitiveness of India's spinning and textile industries. This step will also ensure that the minimum support price (MSP) and other farmer-support mechanisms can function as intended without any significant price distortion. In the current cotton season, the MSP of the cotton variety has increased by about 8%.read more :- Cotton import increased due to trade deal, farmers in trouble, slight relief in textile sector

Trade deal will increase cotton imports! Farmers in crisis and signs of recovery in textile industryNagpur: Due to India-America 'trade deal', efforts have started to eliminate 11 percent import duty on cotton. Already, cotton imports are continuously increasing, while exports are decreasing. With this deal, import of cotton from America will increase and the price of cotton in the domestic market will come under pressure and farmers will have to suffer financial losses. The Indian textile industry, which exports very little, will benefit from the deal as it will get cotton at cheaper prices.The Indian textile industry requires 315 to 320 lakh bales of cotton every year to meet the export and domestic demand of textiles. Every year 330 to 340 lakh bales of cotton are produced in India. India requires 12 to 15 lakh bales of extra long yarn cotton to produce premium quality textiles.The production of this cotton is 3 to 4 lakh bales and every year 10 to 12 lakh bales have to be imported. India has the largest production of long and medium yarn cotton. Since cotton prices in the global market are lower than in India, Indian textile industries import long yarn cotton in the name of extra long yarn and reduce the price. If the cotton price falls below the MSP, the government purchases 22-27 per cent of the total cotton production at the MSP rate. Farmers will be hit the hardest by duty-free cotton imports due to the 'trade agreement'.India's textile exportsChina ranks first in textile exports in the world market, while India ranks sixth. India's textile export share is only four percent. 25 to 30 percent of this cloth is exported to America. The European Union, Vietnam, Bangladesh and Türkiye are India's major competitors.How does the textile industry benefit?The rate of rupee in the year 2021-22 was Rs 1 lakh 5 thousand. Therefore, the prices of clothes increased in the year 2022-23. Rupee prices declined by 40 per cent in 2022-23 to reach a surplus of Rs 62,000. However, the industries did not reduce the rates of clothes by 40 percent. At present the rates of cotton are between 55 to 57 thousand rupees and the rates of clothes are between 1 lakh rupees.A missed opportunity for India in VietnamThere is huge demand for Bangladeshi clothes in the world. Bangladesh's textile industry is dependent on Indian cotton.Due to political instability, Bangladesh's position in the global textile market faltered and India got an opportunity to gain its customers. Vietnam seized this opportunity as the Indian government ignored it.read more :- New opportunity for textile industry from India-US deal

India-US trade deal unlocks $118 billion American textile marketAs India and the US announce that they have reached an interim trade framework, it opens up a $118 billion US global imports market of textiles, apparels and made-ups, a “major opportunity” for the country’s textile industry, as per the government.With the US being India’s largest export destination of around $ 10.5 billion exports, comprising around 70 per cent apparel and 15 per cent made-ups, the Textiles Ministry has welcomed the landmark agreement between both the nations as a major catalyst enhancing textile trade relations.The textile industry said the deal was a major economic game changer for the sector and was expected to play a pivotal role in India achieving its intended target of $100 billion exports in 2030. It is also expected to provide the requisite momentum, with US to contribute to more than 1/5th of this target.A key advantage of the deal lies in the 18 per cent reciprocal tariffs on all the textile products including apparel and made-up. This will not only remove the disadvantage that Indian exporters had, but would place them in a better position than most competitors who face higher reciprocal tariffs like Bangladesh (20 per cent), China (30 per cent), Pakistan (19 per cent) and Vietnam (20 per cent).This shift would significantly alter sourcing methods and drive customers to re-evaluate supply chains in favour of India.Meanwhile, the Confederation of Indian Textiles Industry (CII) estimated that India exported almost $11 billion worth of textiles and apparel to the United States in FY25. India’s biggest export destination for clothing and textiles is the US, which also contributes significantly to industry earnings. About 28–33 per cent of India’s total exports of textiles and clothing go to the US.Yet, with about 9.4 per cent of the US import market, it ranks as the fourth-largest supplier of clothing and textiles to the US. In fact, 33 per cent of India’s exports of ready-made clothing, 48 per cent of its home textile exports, and 59 per cent of its carpet exports are shipped to the US. India’s competitive position was thus undermined by the US’s 50 per cent tariff on its goods.“The India–US Interim Trade framework is a timely and positive step towards the $500 billion trade ambition. By addressing tariffs, non-tariff barriers and supply chain resilience, it creates a more predictable and enabling environment for businesses and two-way investments across manufacturing, technology, energy and services,” Chandrajit Banerjee, Director General, CII, said.The agreement would also enable the industry to be cost-competitive and diversify their risks by sourcing intermediates for the textiles sector from the US. This would facilitate manufacturing of value-added textiles in the country and diversify our production and exports. The deal would generate additional employment and encourage investments by US entities.read more :- 2025-26: State wise CCI cotton sales

State-wise CCI Cotton Sales Details – 2025-26 SeasonThe Cotton Corporation of India (CCI) kept its price unchanged during this week for the 2025-26 season. So far, approximately 3,61,900 cotton bales have been sold by CCI during the 2025-26 season. Sales are highly concentrated in a few major cotton-producing states, Maharashtra and Gujarat emerging as the leading contributors.

“Soybean and cotton farmers interests are protected”- Maharashtra CM Devendra Fadnavis on Indo-US trade deal.Maharashtra Chief Minister Devendra Fadnavis Saturday said that the state’s farmers interest will be protected and they will not face any negative impact by the Indo-US trade deal.On the sidelines of Advantage Vidarbha 2026, Fadnavis, when asked whether soybean and cotton farmers could face problems or lose market share due to the Indo-US trade deal, told The Indian Express:  “That is not going to happen. Farmers are well protected. The government is buying a large share of soybean produce at the Minimum Support Price (MSP), and the market price has also stabilised.” Advantage Vidarbha is a three-day business conclave aimed at attracting investment to the mineral-rich, drought-hit region.The India-US joint statement released on Friday morning says that India will eliminate or reduce tariffs on all US industrial goods and a “wide range” of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.“India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products. Recognising the importance of working together to resolve long-standing concerns, India also agrees to address long-standing non-tariff barriers to the trade in U.S. food and agricultural products,” the statement said.The US Agriculture Secretary Brooke Rollins also earlier had claimed that the India-US trade deal will result in “export [of] more American farm products into India’s massive market”.Soyabean and Cotton are the main cash crops in Vidarbha and Marathwada region for the majority of farmers. Farmer organisations in Maharashtra have raised concern that if the government will allow unrestricted import of the agriculture produce under Indo-US trade deal, it will be distressing for the Indian farmers as they will not be able to withstand the competition from the advanced agriculture sector in the US.In a letter to the Prime Minister’s Office (PMO), Swabhimani Shetkari Sanghatana president Raju Shetti wrote, “We have been informed that India and US have signed a 500-billon dollar trade deal which allows import of agricultural products at zero interest. If taken forward, the deal will be a betrayal of Indian farmers as the country will be flooded with imports such as soybean, corn, milk products and others from the US.”Shetti earlier told the  that US farmers produce crops like Soyabean and Cotton at much larger scale, their markets are stabilised and Indian farmers will find it extremely difficult to compete with them in the absence of any level-playing field.Currently most of the US’ Agriculture export to India is Tree Nuts- like almonds and pistachios, followed by Cotton and Soyabean Oil. Whereas India’s Agriculture export to the US is seafood, spices, rice, vegetable oils, processed fruits & vegetables.The US runs a trade deficit with India in agricultural products, meaning it imports more than it exports. Agricultural and dairy products have been a key point of contention, with the US pushing for greater market access in India. However, the deficit was already narrowing even without a trade deal, declining from $3.5 billion to $3.1 billion in 2025.read more :- US-India announce historic interim trade agreement

United States and India Announce Framework for Historic Interim Trade AgreementThe United States and India are proud to announce a framework for an Interim Trade Agreement, marking a major milestone in strengthening their economic partnership. This framework advances ongoing negotiations toward a comprehensive U.S.-India Bilateral Trade Agreement (BTA) launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025.The Interim Agreement reflects both nations’ commitment to reciprocal, balanced, and mutually beneficial trade, deeper market access, and resilient supply chains.Key Highlights:Tariff Reductions: India will cut or eliminate tariffs on U.S. industrial, food, and agricultural products.Reciprocal U.S. Tariffs: The U.S. will adjust tariffs on select Indian goods and remove duties on pharmaceuticals, gems, and aircraft parts under the agreement.Market Access: Both nations commit to sustained preferential access across key sectors.Non-Tariff Barriers: India will ease restrictions on U.S. medical devices, ICT goods, and agricultural products.Technology & Energy: India plans to purchase $500 billion in U.S. energy, aircraft, technology, and metals over five years, boosting trade in high-tech goods.Digital & Economic Security: The two countries will collaborate on digital trade rules, supply-chain security, and innovation.This framework underscores a shared vision for a modern, fair, and forward-looking trade partnership—paving the way for a landmark U.S.-India Bilateral Trade Agreement.read more :- India-EU FTA will increase competitiveness of Indian textiles: ICRA

India–EU FTA to put Indian textiles on par with competitors: ICRA Indian textile and apparel exports are expected to gain a significant competitive boost in the European market following the signing of the India–EU Free Trade Agreement (FTA). The agreement eliminates duties on Indian shipments, placing them on a level playing field with key competitors such as Bangladesh and Vietnam, according to an Investment Information and Credit Rating Agency (ICRA) report.EU import duties on Indian textiles are expected to fall to zero, addressing a longstanding tariff disadvantage that had limited India’s competitiveness.  Historically, the EU’s import dependence on India has remained below 5 per cent, with China, Bangladesh, Turkey and Vietnam leading supplies dur to preferential trade access and lower tariffs.India’s apparel exports are estimated at over $16 billion in calendar year 2025 (CY2025), with nearly one-third going to the US and around 23 per cent to the EU, making Europe one of the largest export destinations for the sector. However, exports to the EU have remained largely flat in recent years due to sluggish retail demand, inflationary pressures and vendor diversification by global buyers, the report said.The FTA is expected to be particularly beneficial for apparel and home textile segments, which stand to gain from tariff-free access.Beyond sector-specific gains, the broader trade pact offers preferential zero-tariff access on 97 per cent of EU tariff lines covering 99.5 per cent of India’s export value, with a large portion of duties expected to be eliminated immediately upon enforcement.Over the medium term, the level playing field could also support MSME exporters and reinforce India’s role as a reliable sourcing destination for the EU market.read more :- CCI keeps cotton prices stable, weekly online auction continues