After North, adverse weather triggers pest attack on cotton crops in South India.NEW DELHI: After North India, cotton crops in South India are now grappling with a severe pest outbreak triggered by abnormal weather, raising fears of reduced yields and further decline in the country’s overall cotton production.Prolonged monsoon spells and high humidity in August have led to a surge in “boll rot” disease across cotton fields in Andhra Pradesh. According to experts, this year’s outbreak is more severe than in recent years, with scientists recommending integrated pest management practices advised by the Central Institute of Cotton Research (CICR).A field survey under the government’s Project Bandhan found “boll rot” thriving in moist conditions, damaging standing crops and raising concerns over yield loss, fibre quality deterioration and economic strain for Kharif 2025–26 growers. The survey was conducted by the South Asia Biotechnology Centre (SABC), Jodhpur, in collaboration with KVK (Krishi Vigyan Kendra) Banavasi and confirmed widespread incidence in Kurnool and other cotton-growing areas of Rayalaseema.Dr C D Mayee, cotton epidemiologist and president of SABC, said, “For the first time in a decade, the economic threshold level of boll rot has crossed the severe outbreak mark of 20% in Kurnool district.” Mayee added that the disease has long been recognised as one of the most economically damaging for cotton in South-Central India.Dr Dilip Monga, former head of ICAR-Central Institute For Cotton Research, noted that incessant rains have worsened boll rot severity, with leaf spot cases also rising in recent years. Farmers have been advised to adopt combined cultural practices, balanced crop nutrition, prophylactic measures and integrated pest management for sustainable control.Andhra Pradesh contributes about 10% of India’s cotton production, with Kurnool serving as a key hub. The outbreak comes just weeks after farmers in North India reported leafhopper (jassid) infestations in Punjab, Haryana, and Rajasthan.Adding to farmer distress, the Centre recently scrapped the 11% import duty on cotton, leading to cheaper imports from the US.read more :- State-wise CCI Cotton Sales Details – 2024-25 Season
State Wise CCI Cotton Sales – 2024-25The Cotton Corporation of India (CCI) decreased its prices by a total of ₹1,100 per candy this week. Following the price revision, CCI sold approximately 42,800 bales during the week, bringing the total cotton bales sales for the 2024-25 season to approximately 72,19,200 bales. This represents around 72.19% of the total cotton procured so far this season.A state-wise breakdown of sales indicates strong activity from Maharashtra, Telangana, and Gujarat, which together account for over 83.94% of the total sales to date.This data underscores CCI’s proactive efforts in stabilizing the cotton market and ensuring steady supply across key cotton-producing states.read more :- INR Opens Stronger by 13 Paise at 87.39
Indian rupee opens 13 paise higher at 87.39 against the dollar.The Indian rupee opened 13 paise up at 87.39 against the US dollar on August 25 as compared to 87.52 against the greenback at previous close.read more :- CCI sold 72% cotton through e-auction, reduced prices
CCI Decrease Cotton Prices, sold 72% of 2024–25 Procurement via E-BiddingThe Cotton Corporation of India (CCI) conducted online bidding for cotton bales throughout the week, with significant trading activity observed across both the Mills and Traders sessions. Over the course of five days, CCI decreased its prices by a total of ₹1,100 per candy.As of now, CCI has sold approximately 72,19,200 cotton bales for the 2024–25 season, representing 72.19% of its total procurement for the season.Date wise weekly Sales Summary :18 August 2025 :Sales amounted to 6,200 bales, all from the 2024–25 season.Mills session: 1,700 balesTraders session: 4,500 bales19 August 2025 :A total of 3,800 bales were sold from the 2024–25 season.Mills session : 1,600 balesTraders session : 2,200 bales20 August 2025 :Sales amounted to 12,300 bales, all from the 2024–25 season.Mills session: 8,100 balesTraders session: 4,200 bales21 August 2025 :The highest daily sales of the week were recorded on this day, with 15,200 bales sold from the 2024–25 season.Mills session : 8,200 balesTraders session : 7,000 bales22 August 2025 :The week concluded with sales of 5,300 bales.Mills session: 1,600 balesTraders session: 3,700 balesWeekly Total:CCI achieved total sales of approximately 42,800 bales for the week, underscoring its strong market engagement and the growing efficiency of its digital transaction platform.read more :- INR Drops 16 Paise, Closes at 87.52 per Dollar
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
Proposal to Remove 12% and 28% GST Slabs Gains Support, Tax Structure May Be SimplifiedIn a major move towards simplifying India’s tax system, a proposal to abolish the 12% and 28% GST slabs has received support from a Group of Ministers (GoM). If implemented, the GST structure would largely be streamlined into two main slabs—5% and 18%.The proposal was discussed in a recent GoM meeting, where state finance ministers agreed in principle to rationalize the current four-tier GST system. The panel, headed by Samrat Chaudhary, recommended reducing the slabs to make the system more efficient and easier to comply with.Two-slab system in focusUnder the proposed structure, essential goods would be taxed at 5%, while most standard goods and services would fall under the 18% bracket. However, luxury and sin goods may continue to attract a higher tax rate of around 40%.According to estimates, nearly 99% of items currently taxed at 12% could be moved to the 5% slab, while around 90% of goods in the 28% category may be shifted to 18%. This restructuring is expected to simplify taxation and reduce confusion for both consumers and businesses.Luxury goods to remain highly taxedThe GoM has also suggested retaining a higher tax rate of 40% for luxury cars and certain demerit goods. Finance ministers from several states, including Uttar Pradesh, Rajasthan, West Bengal, Karnataka, and Kerala, have backed the proposal, stating that it would improve transparency and potentially expand the taxpayer base.Government’s stanceUnion Finance Minister Nirmala Sitharaman emphasized that rationalizing GST rates would benefit the general public by making the tax system more transparent and efficient. She noted that lowering tax rates on several items could help reduce prices and provide relief to consumers.If approved, the proposed changes could mark one of the most significant overhauls of the GST framework since its introduction, aiming to boost compliance, ease of doing business, and overall economic efficiency.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
| title | Created At | Action |
|---|---|---|
| Pest attack on cotton crops in South India | 25-08-2025 18:57:58 | view |
| State-wise CCI Cotton Sales Details – 2024-25 Season | 25-08-2025 17:49:14 | view |
| INR Opens Stronger by 13 Paise at 87.39 | 25-08-2025 17:24:26 | view |
| CCI sold 72% cotton through e-auction, reduced prices | 23-08-2025 00:14:26 | view |
| 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 |
| GST Simplification Plan: 12% & 28% Slabs May Be Removed | 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 |
