Latest news with #CottonAssociationofIndia
Time of India
a day ago
- Business
- Time of India
No import duty on cotton may hurt local farmers: Traders
Nagpur: India's decision to scrap import duty on cotton until September 30 may benefit the US, but cause losses to farmers in regions like Vidarbha, say stakeholders in the sector. A day after the duty was lifted, Cotton Corporation of India (CCI) reduced the rates at which it sells bales by Rs600 per candy (per 356 kgs) on Tuesday. This indicates that domestic prices are easing. Duty-free imports would mean the textile industry getting cheaper imported cotton, but rates available to farmers in India may slump, say traders. "CCI cutting the rates is already an indication. As imported cotton is expected to flood India, demand for home-grown produce may fall, bringing down the rates," said Vijay Jawandhia, a veteran farm activist from Wardha. He added that farmers will have to depend on purchase of raw cotton by CCI at minimum support price (MSP). This year, MSP has been fixed at Rs8110 a quintal. CCI later sells the bales in the open market. The Cotton Association of India (CAI), a traders' guild, has written to the govt demanding that at least those consignments having a bill of lading until September 30 be exempt from duty. There is confusion if the consignments booked earlier but arriving in India at a later date would be exempt from duty or not. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo "The duty has been lifted only until September 30; the window is too short for the textile industries to benefit. By the time the consignments reach India, it would already be past September," says Prashant Mohota of Gimatex Industries, a yarn-making unit in Wardha. Cotton harvests would begin by mid-October. However, a section of traders accepted that the open market rates would be bearish. The import orders are already at a record high of 39 lakh bales of ginned cotton this season. The booking would further increase after the duty cut, leading to a glut in India. "So, duty-free imports may still leave an impact on domestic cotton rates during the harvest season next month," pointed out an expert. The US sees it as a chance to penetrate the Indian markets, competing with Brazil which has been able to sell at competitive rates. "The Indian trade sector may prefer US cotton over Brazilian due to its better quality," the source said. The Honorary Treasurer of the Cotton Association of India, Rintu Pandya, also pointed out the possibility of a global price collapse due to China. "China has stopped buying US cotton, and its own production has reached 400 lakh bales. In that case, if China decides not to import any more and consume its own carryforward stock, the global market may crash. This may have a further impact on Indian raw cotton prices." said Pandya. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Indian Express
a day ago
- Business
- Indian Express
Will increase farm suicide and distress: Cotton growers protest removal of import duty on cotton
Cotton growers across the state have protested against the decision of the central government to lift the 11 per cent import duty on cotton till September. Farm leaders said that this move would accelerate farm suicide and farm distress. On Tuesday, the central government declared the removal of the 11 per cent import duty on cotton. This move has been welcomed by the Textile Trade, saying imports would help in reducing the stress on the industry due to higher prices of domestic produce. Laximkant Kauthakar, Vidarbha president of Shetkari Sanghatana said this move would result in distress for cotton growers in Marathwada and Vidarbha, 'Even before the present crop has hit the market, prices are below the government declared Minimum Support Price (MSP) of Rs 7,710/quintal (medium staple). Once the new crop comes in it would dip further. With imports now threatening to flood the market, we can't imagine how the prices would react,' he said. Kauthankar who himself is a cotton farmer from Akola, Maharashtra said this move might push more farmers to die by suicide. Atul Ganatra, president of the Cotton Association of India (CAI)- the apex body of cotton value change in the country- however said this move will not affect the domestic prices. 'The domestic produce would arrive post October so the imports would help the price stressed textile industry,' he said. Meanwhile, Manikrao Kadam, a farm leader from Marathwada area of Maharashtra said the government has buckled under pressure from the US government. 'All talks about protecting the farmer have been in vain,' he said. Similarly, Vijay Jawandhiya, a farm leader from Vidarbha went on to add that this move might help the textile industry but farmers would not be helped. 'There would be continuous decline in prices with strong government intervention necessary to help the farmers. Procurement under MSP has to be buckled up,' he said. Former MP Raju Shetti was also critical of the move. 'The government has buckled under US pressure,' he said.
Fibre2Fashion
20-06-2025
- Business
- Fibre2Fashion
CAI revises 2024â25 cotton output to 301 L bales, seeks policy reforms
The Cotton Association of India (CAI) has further raised its cotton production estimate to 301.15 lakh bales of 170 kg for the current 2024–25 season (October–September). In its April 2025 report, it had projected production at 291.35 lakh bales. India's cotton production last year stood at 327.45 lakh bales. The region-wise analysis shows that cotton production in north India may fall to 28.80 lakh bales this season from 45.62 lakh bales. In central India, production is expected to reach 180 lakh bales, down from 202.21 lakh bales last year. However, cotton production in south India may rise to 86.50 lakh bales from 73.85 lakh bales, CAI said in a press statement. CAI has raised its 2024â€'25 cotton production estimate to 301.15 lakh bales. Output is set to decline in the north and central regions but rise in the south. Consumption and exports are expected to fall, while imports may more than double. CAI flagged rising MSPs as a threat to competitiveness and urged reforms, including changes to CCI's sales policy and a Bhavantar-like scheme. Cotton stock is projected to be 48.34 lakh bales at the end of the current season, compared to 30.19 lakh bales last year. The country's cotton consumption may decline to 305 lakh bales from 313 lakh bales in the previous year. Cotton exports are also expected to fall to 17 lakh bales from 28.36 lakh bales last season, while imports may rise two-and-a-half-fold to 39 lakh bales from 15.20 lakh bales. CAI stated that the continuous increase in minimum support prices (MSP) for cotton is causing concerns. Higher MSPs not only distort market dynamics and hinder the natural price discovery process, but also raise production costs for textile mills, potentially leading to higher consumer prices and negatively impacting the global competitiveness of Indian cotton. As this poses a threat to the survival of the entire value chain, stakeholders emphasised the need for an equitable solution that continues to provide remunerative prices to farmers without compromising the competitiveness of trade and industry. Several suggestions were made during the meeting, including the introduction of a Bhavantar-like scheme and revisions to the Cotton Corporation of India (CCI) sales policy. Suresh Kotak, chairman of the Textile Advisory Group and chairman of the Kotak Group of Companies , appreciated the stakeholders' concerns and acknowledged the need to revise the MSP structure and CCI sales policy. He noted the suggestions and stated that he would take them up with the government. Fibre2Fashion News Desk (KUL)
India.com
18-06-2025
- Business
- India.com
India beats China and Bangladesh to become biggest player in…, shocks Pakistan due to…
The global textile industry is witnessing a major shift as buyers move away from China and Bangladesh. Now India is emerging as a major center for this business. India's garment exports have shown major growth. According to data from the industry organization CITI, apparel exports increased by 11.3% in May. Western buyers also now consider India as a more reliable partner as compared to Bangladesh and China. This has boosted India's exports. In August last year, political instability started in Bangladesh after a government change under Sheikh Hasina. This situation led to India's export growth. According to The Economic Times , apparel exports surged by 17.3% in September and 24.35% in October. Several buyers from developed nations are asking Indian suppliers to boost their capacity and get necessary certifications. After tariffs were imposed by the Trump administration on China also helped India to gain a duty advantage over Chinese exports. This surge in exports is good news for the textile industry, which was struggling for two years after the COVID-19 pandemic. The political tussle in Bangladesh led to a shift in global supply chains. Industry leaders believe that buyers prioritize stability and continuity in the supply chain, avoiding any form of uncertainty. Although Bangladeshi manufacturers are in high capacity and can fulfill large orders in short periods, Indian manufacturers are optimistic about maintaining their export growth, driven by duty advantages over China. India holds a $10 billion share in the U.S. apparel market as compared to China's $30 billion. While apparel exports are rising, the import of raw cotton is also increasing, as domestic cotton prices are higher than international rates. The Cotton Association of India estimates that cotton imports will more than double in 2024-25, reaching 3.3 million bales (170 kilograms each) compared to 1.52 million bales last year. Paksitan's export were far less than Indian, according to media reports, In fiscal year 2024-25, Pakistan's exports were $24 billion.
Fibre2Fashion
04-06-2025
- Business
- Fibre2Fashion
North India's cotton sowing area unlikely to recover after major drop
North India's cotton sowing acreage is unlikely to improve in the new season despite a steep fall in the sowing area last year. Trade sources said that cotton acreage may recover by around 25–30 per cent in Punjab, but the area under cotton may further decrease in Haryana and Rajasthan due to a scarcity of water for irrigation. Market experts noted that the assured returns from wheat and paddy, owing to government procurement, have discouraged cotton farming in the north Indian states. Around 60–70 per cent of cotton sowing was completed by the end of May in north India, according to market sources. The sowing work is expected to finish in the next one or two weeks. There are indications that farmers in Haryana and Rajasthan are facing an acute water crisis for irrigation. Cotton sowing in north India mostly depends on canal water, but both states are not receiving adequate supplies to meet the growing demand. Cotton sowing in north India is expected to remain subdued in the 2025â€'26 season, despite a sharp acreage decline last year. While Punjab may see a slight recovery, Haryana and Rajasthan face further reductions due to water scarcity and shifting preference towards wheat and paddy, which offer assured procurement. Total acreage may fall below 10 lakh hectares. Sources said that cotton sowing area in Punjab may increase by nearly 30 per cent to reach 1.25 lakh hectares in the 2025–26 season. However, sowing may decline by 20–25 per cent in Haryana and 25–30 per cent in Rajasthan. All three states recorded a sharp fall in cotton acreage last year, dropping to 10.955 lakh hectares, according to official figures. There are indications that north India's total cotton sowing area may decline further and fall below 10 lakh hectares in the new season. Sources noted that farmers in these states are opting for the safer option of paddy cultivation during the Kharif season, as the government remains committed to procuring paddy and wheat (during the Rabi season) at the minimum support price. The current procurement policy has disillusioned farmers from growing cotton. Historical cotton sowing data also supports this trend. North India's cotton sowing area was 15.620 lakh hectares in 2023–24, according to the Ministry of Agriculture. It declined to 10.955 lakh hectares in 2024–25. Punjab's cotton area reduced to 1 lakh hectare from 2.140 lakh hectares in 2023–24. The area dropped to 4.760 lakh hectares in Haryana and to 5.195 lakh hectares in Rajasthan, from 6.650 lakh hectares and 6.830 lakh hectares respectively. The Cotton Association of India (CAI) recently stated that north India's cotton output fell to 27.50 lakh bales (170 kg each) in the current season, down from 45.62 lakh bales last season. Production estimates for the current season are: Punjab – 1.50 lakh bales, Haryana – 7.80 lakh bales, upper Rajasthan – 9.60 lakh bales, and lower Rajasthan – 8.60 lakh bales. In comparison, last season's output were: Punjab – 3.65 lakh bales, Haryana – 13.30 lakh bales, upper Rajasthan – 15.47 lakh bales, and lower Rajasthan – 13.20 lakh bales. Fibre2Fashion News Desk (KUL)
