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US tariffs may cause 5-10% drop in textile industry revenue: Crisil

US tariffs to reduce domestic textile industry revenues by 5-10%: Crisil RatingsAccording to a report by Crisil Ratings, the 50 per cent US tariff is likely to result in a 5-10 per cent decline in revenues of domestic textile manufacturers, along with a reduction in operating profitability.The US has imposed a 50 per cent tariff on imports of Indian goods from August 27, including a 25 per cent penalty on buying Russian crude oil. Although US President Donald Trump and Prime Minister Narendra Modi have assured that trade talks are on, no agreement has been reached yet.The domestic textile industry saw a 2-3 per cent growth in exports to the US in the first quarter of the current financial year (Q1 FY26). However, before the imposition of higher tariffs, exports had picked up due to advance loading of some orders.Major share of revenue from exportsExports contribute to at least three-fourths of the domestic textile industry's revenue. The total market size of the industry is estimated to be ₹81,000 crore in FY25E, up from ₹75,000 crore in FY24. Of this, exports to the US stood at ₹26,000 crore (estimated) in FY25E, up from ₹25,000 crore in the same period last year.The impact of tariffs on the industry is likely to be more pronounced as exports to the US exceed exports to other countries. Exports to other countries stood at ₹23,000 crore in FY25E, up from ₹20,000 crore in FY24.. Crisil analysed 40 home textile companies that account for 40-45 per cent of industry revenues.Maintaining competitive edgeAccording to the report, these three factors could cushion the blow:Sales growth during April-August 2025Diversification into alternative geographiesLimited capacities from competing countries such as China, Pakistan and TurkeyAdditionally, a debt-free balance sheet would partially offset the impact on the credit profile, the report said.Manish Gupta, deputy chief rating officer, Crisil Ratings, said, "With limited capacity to manufacture cotton-based home textile products in competing countries, India should be able to maintain its competitive position in the US market in the near future. This should limit the decline in overall industry revenue to 5-10 per cent in FY26."UK, EU emerge as alternative marketsGrowing trade with the European Union (EU) and the United Kingdom (UK) will help manufacturers offset lower purchases in the US, the report said. These geographies contributed nearly 13 per cent of India's domestic textile exports in FY25.India recently signed its free trade agreement with the UK and is in the final stages of negotiations with the EU.Goutam Shahi, director, Crisil Ratings, said, "It will take time to ramp up revenues from alternate export destinations. Meanwhile, operating profitability on exports to the US may decline sharply in the remainder of this fiscal year, as Indian exporters absorb some part of the higher duties and some expected slowdown in demand from the US due to inflation."read more :- Textile-apparel sector dependent on domestic consumption: SIMA

Textile-apparel sector dependent on domestic consumption: SIMA

Domestic consumption, key for Indian textile and apparel sector, says SIMADomestic consumption of textiles and apparel is expected to play a critical role in managing the “temporary dip” in exports to the US because of 50% Trump tariff, said the newly-elected chairman of the Southern India Mills Association (SIMA) Durai Palanisamy in a press release on Thursday.Though the recent U.S. tariffs have created notable challenges, the industry remains optimistic. Currently, the U.S. accounts for nearly 28% of India’s total textile exports, valued at around $ 11 billion.The industry is actively working with the government to explore new market opportunities and diversify its export base. With continued policy support, rationalisation of tax structures and strategic market access initiatives, the industry is confident of sustaining momentum both in domestic and global markets, he said.Domestic consumption of textiles and apparel is expected to play a critical role in managing the “temporary dip” in exports to the US because of 50% Trump tariff, said the newly-elected chairman of the Southern India Mills Association (SIMA) Durai Palanisamy in a press release on Thursday.Though the recent U.S. tariffs have created notable challenges, the industry remains optimistic. Currently, the U.S. accounts for nearly 28% of India’s total textile exports, valued at around $ 11 billion.The industry is actively working with the government to explore new market opportunities and diversify its export base. With continued policy support, rationalisation of tax structures and strategic market access initiatives, the industry is confident of sustaining momentum both in domestic and global markets, he said.Accumulation of GST at 18% on textile machinery continues to be a significant burden for the highly capital-intensive textile industry, severely impacting working capital and new investments in the absence of the Technology Upgradation Scheme. Resolving this issue, along with addressing the challenges arising from the implementation of Quality Control Orders on MMF and its products, are critical to enhance the industry’s competitiveness, he said.The next-generation industry leaders to explore emerging global markets and focus on manufacturing innovative products using MMF, Mr. Palanisamy added.Durai Palanisamy, Executive Director of Pallava Textiles, was elected chairman of the SIMA for 2025-2026 at the 66th annual meeting of the association held in Coimbatore on September 11.S. Krishnakumar, Managing Director, Sulochana Cotton Spinning Mills, Tiruppur, was elected deputy chairman of the association, and K Sivaraj, Managing Director, Sivaraj Spinning Mills, Dindigul, was elected the vice-chairman of the association.At the annual meeting of the SIMA Cotton Development and Research Association (SIMA CDRA) held on Thursday, S.K. Sundararaman, Managing Director, Shiva Texyarn, Coimbatore was re-elected as its chairman for 2025-2026. Durai Palanisamy, Executive Director, Pallava Textiles, Erode, and S. Krishnakumar, Managing Director, Sulochana Cotton Spinning Mills, Tiruppur, were re-elected as deputy chairman and vice-chairman respectively.read more :- INR Opens Stronger by 04 Paise at 88.40

"Ministry of Textiles Meeting–MSME Exporters Cooperation".

Meeting Summary – Ministry of Textiles, New DelhiAn important meeting was held at the Ministry of Textiles, New Delhi, under the chairmanship of Secretary Mrs. Padmini Singla. The meeting was attended by Mr. Latil Gupta, Chairman of the Cotton Corporation of India (CCI), along with representatives of ginners’ associations from major cotton-producing states across the country.During the meeting, Mrs. Singla listened carefully to the industry’s suggestions and concerns and presented a positive and visionary outlook. Most of the issues related to ginners were discussed in detail, while it was noted that some matters require further deliberation.Key outcomes of the meeting:1. CCI will review cotton lint standards and make them more practical.2. The provisions related to blacklisting will be largely removed.3. Fresh tenders will be issued based on revised and updated conditions.4. Ginners’ associations have been requested to present a draft framework for the evaluation of L1 and other bidders.The meeting proved to be highly productive and was appreciated by all stakeholders. Notably, for the first time, various ginners’ associations from across the country came together on one platform to collectively present their issues and suggestions.Associations that participated in the meeting:* Maharashtra Cotton Ginners Association* Vidarbha Cotton Association* Marathwada Cotton Association* Khandesh Cotton Association* Telangana Cotton Association* Saurashtra Cotton Association* North India Cotton Association* Upper Rajasthan Cotton Association* Madhyanchal Cotton Association* Punjab Cotton Association* Haryana Cotton Association* Odisha Cotton Association* Andhra Pradesh Cotton AssociationAll associations praised the leadership and visionary approach of Mrs. Padmini Singla. The attending representatives believed that this meeting was a reassuring and significant step toward concrete solutions for the industry.read more :-

Cotton stock at 5-year high in 2025-26

India’s carry-forward cotton stocks for 2025-26 seen at 5 year high of 60.69 lakh balesIndia’s cotton carry-forward stocks for the new season 2025-26 starting October are estimated at 60.59 lakh bales of 170 kg each, the highest in five years. Cotton stocks at the beginning of the current 2024-25 season ending September stood at 39.19 lakh bales.“The increase in closing stocks is mainly on account of higher imports of 41 lakh bales over last year’s 15 lakh bales. Also, the opening stocks are the highest after Covid year 2020-21 during which it was around 120 lakh bales,” Atul S Ganatra, President, Cotton Association of India (CAI), told businessline.The government has recently removed the 11 per cent import duty on cotton till the year-end to help textiles sector deal with the US tariff issue. “We expect around 20 lakh bales to be imported during the October-December quarter,” Ganatra said.For the current 2024-25 season, CAI has revised upwards the imports by 2 lakh bales from its earlier projections to 41 lakh bales after the gGovernment removed the import duty. The cotton imports for the 2024-25 season are higher by about 25.80 lakh bales over the previous year’s 15.20 lakh bales. Up to August 31, 36.75 lakh bales are estimated to have arrived at the Indian ports, Ganatra said For the 2024-25 season, CAI has revised the cotton pressing numbers by one lakh bales to 312.40 lakh bales, based on the latest report submitted by the upcountry associations and trade sources. About 307.09 lakh bales have already arrived till August and balance 5.31 lakh bales are expected during September. The pressing estimates in Maharashtra have been increased by 1 lakh bales to 91 lakh bales, and in Andhra Pradesh by 0.5 lakh bales to 12.5 lakh bales. However, in Telangana, the pressing estimate have been reduced by 0.5 lakh bales to 49 lakh bales.CAI has maintained the consumption estimate at 314 lakh bales for 2024-25, same as projected previously. The consumption till August was estimated at 286 lakh bales.The exports for the 2024-25 season are projected at 18 lakh bales, lower by 10.36 lakh bales over previous year’s 28.36 lakh bales.read more:- Book slots for cotton sale through the app, get rid of crowd in the market

CCI Launches ‘Kapas Kisan’ App for Easy Cotton Selling

No need to wait in the market: Farmers can book slots to sell cotton using this mobile appNew Delhi: To make cotton procurement easier for farmers, the Government of India’s cotton procurement agency, Cotton Corporation of India (CCI), has launched the ‘Kapas Kisan’ mobile app. Through this app, farmers can register online and sell cotton at the Minimum Support Price (MSP) by booking slots directly from their mobile phones.Every year, lakhs of farmers sell their cotton in mandis, but many do not receive the benefit of MSP and often depend on middlemen. To address this issue, CCI has introduced this digital platform, allowing farmers to complete the entire process from home.Farmers can download the ‘Kapas Kisan’ app from the Google Play Store or Apple App Store. They are advised to complete registration by September 30 to be eligible for MSP procurement.Key Features of the Kapas Kisan App:Online Registration: Farmers can register using Aadhaar and mobile numberSlot Booking: Select convenient date and time for cotton salePayment Tracking: Check payment status after sale directly on mobileNo Middlemen: Direct government procurement ensures fair pricingTransparency: Fully digital process reduces chances of irregularitiesWith this app, farmers will receive MSP-based payments directly into their bank accounts, ensuring a faster, safer, and more transparent cotton procurement system.read more :- Rupee fell 31 paise to close at 88.44 per dollar

Jalgaon: Signs of 40% reduction in production due to cotton rot

Cotton rot in Jalgaon... signs of 30 to 40 percent reduction in production !Jalgaon - The continuous rain in the district for the last few days has now stopped. However, farmers are worried as the outbreak of cotton rot has increased after the rain. Agricultural experts have predicted a 30 to 40 percent reduction in cotton production due to rot.Due to farmers reducing their cultivation in Jalgaon district, the cotton acreage has decreased by about 21 percent in the Kharif season this year. It is seen that cotton, which is currently in the kernel ripening stage, has spread rot widely after the rains stopped. Green leaves have also started turning red suddenly, seeing this, farmers have also taken measures. According to experts at the Cotton Research Center in Jalgaon, rot in cotton crops is not a disease but a type of abnormality. This abnormality is seen in large numbers in the American hybrid BT variety. Water stress, excessive water retention in the soil, i.e. lack of moisture in the soil, temperature changes, infestation of sucking pests and imbalance of nutrients like nitrogen and magnesium are the main causes of red spot on cotton crop.What are the remedies for red spot?To prevent red spot on cotton, integrated nutrient management should be adopted from the beginning of the crop. Organic manure, farmyard manure, compost manure, vermicompost should be used before planting. Also, seed treatment should be done with Azotobacter and phosphorus-solubilizing bacteria. Chemical fertilizers and micronutrients should be used as recommended. While using chemical fertilizers, they should be given at the right time, in the right way and in the right quantity. If rainwater is seen accumulating in cotton, it is necessary to drain out the water immediately. If water availability is less, then arrangements should be made to rain one after the other. If there is moisture, light tilling should be done. It is also necessary to apply manure to the crop. If the last installment of nitrogen has not been given, then 40 to 50 kg of urea should be given per acre. Magnesium sulphate should be used at 20 to 30 kg per hectare. Also, two percent DAP or soluble fertilizers should be sprayed. Cotton Research Center, Jalgaon has advised that after the first spraying, two to three sprayings should be done at an interval of 10-15 days.If the cotton crop is affected by red blight disease, then the yield may decrease by 30 to 40 percent. Therefore, farmers should take preventive measures in time. -Dr. Girish Chaudhary (Producer- Cotton Research Center, Jalgaon)read more :- India's GDP is estimated to grow by 6.6% in 2026

India's GDP is estimated to grow by 6.6% in 2026

India's GDP to grow at 6.6% in FY26 despite tariff pressures: ReportNomura in its recent report said that India's GDP growth rate in FY26 is projected to be 6.6 percent year-on-year, incorporating policy changes. This is under the assumption that the 25 percent reciprocal tariff will remain in place until FY26, and the 25 percent Russian penalty will be applicable only till November. On the other hand, if both sides stick to their word, resulting in the continuation of the 50 percent tariff rate, then the impact on GDP growth is expected to be 0.8 percentage points (pps) on an annual rate basis.The current account deficit (CAD) could also narrow to around 1.1 percent of GDP. In its report 'India-US trade rift: Outlook, spillovers and strategic shifts', Nomura said job losses in export-oriented sectors could have a significant impact on investment and consumption, and there could be risks of further escalation through tariffs or non-tariff barriers.The report said US-India trade talks have stalled after President Trump imposed 50 per cent tariffs. The deadlock still persists in the agriculture and dairy sector, as India pushes for a comprehensive agreement while the US favours a quick resolution. Domestically, Prime Minister Modi has taken a tough stand on protecting farmers, receiving rare support from opposition parties and businesses, and there is a growing emphasis on self-reliance.With the new tariff structure, the cost gap between India and China has narrowed, and between India and Southeast Asian competitors, it has shifted in China's favour. This could have a number of implications on the nature of new supply chains, such as negative impact on textiles, leather and toys, and Indian companies could potentially shift their production to countries with lower tariffs to retain their US customer base. However, the report further states that this will only impede global value chain integration for India, not completely derail it.Nomura expects a multi-pronged government response to support exporters and stabilise the economy. These measures are expected to include fiscal and financial support, export diversification and accelerating free trade agreements (FTAs). Structural reforms are also likely to accelerate, with rationalisation of the goods and services tax (GST) already announced. This is likely to be followed by further liberalisation of FDI, deregulation, factor market reforms, privatisation and administrative streamlining.read more :- Rupee opens 03 paise down at 88.13

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