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The Indian rupee opened at 87.03 on Tuesday and closed the day 4 paise lower at 87.07 per dollar.At close, the Sensex was up 1,397.07 points or 1.81 percent at 78,583.81, and the Nifty was up 378.20 points or 1.62 percent at 23,739.25. About 2426 shares advanced, 1349 shares declined, and 144 shares unchanged.read more :-India's textile, apparel players positioned to benefit from Trump tariffs

India's textile, apparel players positioned to benefit from Trump tariffsIndian textile and apparel players are poised to benefit from the first round of Trump's tariffs levied against China, Mexico and Canada. The industry can leverage this shift in trade dynamics to significantly increase its exports to the US, which currently sits at 28  per cent.The newly appointed Trump administration declared an economic emergency on Saturday, placing duties of 10 per cent  on all imports from China and 25 percent on imports from Mexico and Canada, citing national security concerns. The first round of tariffs looms as a threat to textile and apparel exports from China and Mexico, forcing brands to seek alternative sourcing options in countries like Vietnam, Bangladesh, and India.As per data from the United States International Trade Commission (USITC), China has been the leading supplier to the world's largest textile importer between 2013-2023, followed by Vietnam, Bangladesh and India.  But its share of US apparel imports fell from 37.7 percent in 2013 to 21.3 percent in 2023 by value, amid increased cost of procuring and risk due to  allegations of forced labour. Analsyts expect the current round of layoffs to position India better in benefitting from the shift in trade dynamics."This policy shift is likely to accelerate diversification strategies of global brands, positioning India as a key sourcing hub. So, expect growth for home textiles and garments as India captures a larger market share year-to-date calendar year 2024 (January-November 2024), India’s market share in cotton sheet imports to the US improved to 61.3 percent (up 252bps YoY), in total apparel to 6.0 percent (up 22bps YoY) and in cotton apparel to 9.8 percent (up 49bps YoY), according to brokerage Elara Securities.India is a major textile and apparel exporting country and enjoys a trade surplus. The bulk of import takes place for re-export or for industry requirement of raw material. As of 2024, exports of ready-made garments to the US stood at 14.3 per cent, according to data from the Apparel Export Promotion Council (AEPC). Key apparel exports to the US include cotton knit and woven shirts, cotton dresses, and babies’ garments."India stands to benefit from this shift due to its established textile and apparel industry. In 2023, India exported textile items worth USD 34 billion, with apparel constituting 42% of the export basket. Notably, Europe and the U.S. consumed nearly 66% of India's apparel exports, underscoring the country's strong presence in these markets," said  Naveen Malpani, Partner at Grant Thornton.Apparel producers in India specialise in value-added products that require higher skill levels, such as items requiring hand embroidery or embellishments. Additionally, India’s production of nearly every apparel input, from fiber to accessories, has allowed for vertical integration that appeals to buyers looking to mitigate risk in their supply chains and reduce costs. More than 90 percent of the raw material requirements for apparel are sourced from within the country (India), according to USITC."Global brands are increasingly focusing on diversifying their supply chains beyond Bangladesh, exploring multiple sourcing alternatives to mitigate risks and ensure continuity. While India is among several options being considered, its well-established textiles ecosystem, competitive capabilities, and full-stack solutions position it as a key beneficiary of this strategic shift. We believe India’s robust infrastructure and expertise make it a compelling choice for global brands looking to diversify their outsourcing strategies," Elara Securities said in their note published last month."While this is a positive development, challenges such as high tariff rates on certain Indian apparel categories and compliance with evolving US import regulations may persist subject to negotiations. Addressing these through trade negotiations and supply chain improvements could enhance India’s competitive edge," said  Malpani.read more :-*What is ELS cotton, why doesn’t india grow more of this premium variety?*

Why doesn't India produce more of this high-quality type of cotton? What is ELS cotton?Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget on Saturday, announced a five-year mission to “facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple (ELS) cotton varieties”.What is ELS cotton?Cotton is classified, based on the length of its fibres, as long, medium, or short staple. Gossypium hirsutum, which constitutes roughly 96% of the cotton grown in India, falls in the medium staple category, with fibre lengths ranging from 25 to 28.6 mm.On the other hand, ELS varieties boast fibre lengths of 30 mm and above. Most ELS cotton comes from the species Gossypium barbadense, commonly known as Egyptian or Pima cotton. Having originated in South America, ELS cotton today is mainly grown in China, Egypt, Australia, and Peru.“In India, some ELS cotton is grown along rain fed parts of Atpadi taluka in Maharashtra’s Sangli district, and around Coimbatore in Tamil Nadu,” Bhausaheb Pawar, a senior research assistant with the Mahatma Phule Krishi Mahavidyalay in Ahmednagar.He added that the fabric produced using ELS cotton is of the highest quality.This is why brands producing top-of-the-line fabrics mix a small quantity of ELS with medium staple cotton to improve quality, said Pradeep Jain, founder-president of the Khandesh Gin Press Factory Owners and Traders Development Association. “More than 90% of the 20-25 lakh bales — each bale contains 170 kg of de-seeded ginned and pressed cotton — of the fibre that we annually import constitutes ELS cotton,” Jain said.Why is ELS cotton not grown in India?For the 2024-25 season, the Minimum Support Price (MSP) of medium staple cotton was Rs 7,121 (per quintal) while that of long staple cotton was Rs 7,521.Nonetheless, cotton farmers in India have thus far been reluctant to adopt ELS cotton. This is mainly due to lower than average per acre yields, experts say. While the medium staple variety yields between 10 and 12 quintals per acre, ELS cotton has a yield of only 7-8 quintals.Additionally, farmers growing ELS cotton are often unable to market their premium produce at premium prices. “The market linkages necessary are not available easily,” said one trader.How can the Cotton Mission help?“The best science & technology support will be provided to farmers,” Sitharaman said in her Budget speech.With the cotton ecosystem plagued by low per-acre yields, and increased pest attacks, adoption of the latest technologies would be a welcome step, Jain said. “What we need is the farmer to access the latest in GM [genetic modification] technology,” he said.Farmers in Maharashtra have long demanded that they be allowed to cultivate the herbicide-resistant HtBT cotton, which is illegal at present. This would significantly help with weed management.diCurrently, India’s per acre yields are significantly lower than other countries. For instance, Brazil boasts an average yield of 20 quintals per acre, while China boasts a yield of 15 quintals. Better seeds, timely agronomic advice, and adoption of technology would help India improve in this regard, and grow premium varieties such as ELS cotton.read more :- The Indian currency opened 16 paise stronger at Rs 87.03 against the dollar.

At Rs 87.03, the Indian rupee started the day 16 paise stronger than the US dollar.The Indian rupee opened stronger against the US dollar on Tuesday. According to Bloomberg, the Indian currency opened 16 paise stronger at Rs 87.03 against the dollar. The rupee closed at 87.19 against the dollar on Monday.read more :- Indian rupee ended 08 paise lower at fresh record low at 87.19 per dollar on Monday versus morning open of 87.11.

Monday's morning open of 87.11 saw the Indian rupee close 08 paise lower at a new record low of 87.19 per dollar.At close, the Sensex was down 319.22 points or 0.41 percent at 77,186.74, and the Nifty was down 121.10 points or 0.52 percent at 23,361.05. About 1102 shares advanced, 2742 shares declined, and 163 shares unchanged.read more :-Textile industry welcomes announcement of Mission on Cotton Productivity

The textile sector applauds the Mission on Cotton Productivity's announcement.The textile and apparel sector has welcomed the announcements in the Union budget, especially the announcement of Mission on Cotton Productivity.Vijay Agarwal, chairman of The Cotton Textiles Export Promotion Council, said the proposal to set up an Export Promotion Mission, with sectoral and ministerial targets, will provide the much needed inter-ministerial co-ordination. The Council remains confident in achieving the goal of $25 billion in cotton textile exports by 2030, he added.According to Sudhir Sekhri, chairman AEPC, the budget seeks to create a foundation for robust export growth encouraging innovation and competitiveness, particularly for the MSME sector. The measures announced will help the apparel sector compete globally by promoting Five F vision and “Make in India, Make for the World” initiative. A. Sakthivel, chairman of the Apparel, Made Ups, and Home Textiles Sector Skill Council, said the budget will be impactful and will bring growth.Chairman of the Manmade and Technical Textiles Export Promotion Council Bhadresh Dodhia said the increased fund allocation for key government schemes such as RoDTEP (Remission of Duties and Taxes on Exported Goods), RoSCTL (Rebate on State and Central Taxes and Levies), and Production-Linked Incentive scheme for textiles will boost the export potential of manmade fibre textiles and technical textiles.The Confederation of Indian Textile Industry chairman Rakesh Mehra said the introduction of the new Income Tax regime will increase disposable income with people and enhance domestic consumption of textiles and clothing.S.K. Sundararaman, chairman of the Southern India Mills’ Association, said the cotton is the growth engine and strength of Indian textile industry accounting for almost 80% of the textile exports. The industry has been demanding for a Cotton Technology Mission supporting high yielding seed technology, adoption of global best agronomy practices, producing clean cotton and branding Indian cotton to benefit the farmers and the industry. The announcement of ₹600 crore to improve productivity and sustainability of cotton, promote ELS cotton and best of science and technology to cotton farmer on a mission mode approach will give a thrust to the cotton sector.According to K.M. Subramanian, president of the Tiruppur Exporters’ Association, higher import duty on knitted fabrics will curb the influx of undervalued fabrics and benefit the local manmade fibre-based industry.The South India Hosiery Manufacturers Association president A.C. Eswaran said the Mission on Cotton will benefit the cotton-based textile sector in the long run.Sanjay K. Jain, chairman of the ICC National Textiles Committee, said the overall impact of the budget on the textile sector will be positive and textiles is pre-dominantly in the MSME segment with many women entrepreneurs. Hence, all schemes announced for the MSMEs will benefit the sector.read more :- The Indian currency fell to a record low in early trade at 87.11 against the US dollar, as compared to 86.61 against the greenback at previous close.

In early trading, the Indian rupee dropped to a record low of 87.11 against the US dollar, down from 86.61 at the previous close.The Indian rupee fell to a record low during early trade on February 3 following an uptick in the dollar index after US President Donald Trump imposed tariffs on several nations.read more :-Indian equity indices ended flat in the volatile session on February 1 (Budget day).

Indian equity indices ended flat in the volatile session on February 1 (Budget day).At close, the Sensex was up 5.39 points or 0.01 percent at 77,505.96, and the Nifty was down 26.25 points or 0.11 percent at 23,482.15. About 2001 shares advanced, 1752 shares declined, and 121 shares unchanged.Among sectors, Consumer Durables index was up 3 percent, realty index added 3.3 percent, auto index jumped 1.9 percent, Media index up 2 percent and FMCG index rose 3 percent. On the other hand, capital goods, power, PSU indices shed 2-3 percent and metal, IT, energy down 1-2 percent.Read More :- Indian rupee ended flat at 86.61 per dollar on Friday versus Thursday's close of 86.62.

Indian rupee ended flat at 86.61 per dollar on Friday versus Thursday's close of 86.62.At close, the Sensex was up 740.76 points or 0.97 percent at 77,500.57, and the Nifty was up 258.90 points or 1.11 percent at 23,508.40. About 2635 shares advanced, 1131 shares declined, and 120 shares unchanged.Read More :- US Upland cotton sales down 20%, Pima up 18% this week: USDA

Upland cotton sales in the US are down 20% this week, while Pima is up 18%: USDANet sales of Upland cotton in the United States for the 2024-25 season totalled 280,000 running bales (RB), each weighing 226.8 kg (500 pounds), during the week ending January 23, 2025. This marks a decrease of 20 per cent from the previous week, but an increase of 20 per cent from the prior four-week average.The increases were primarily for Vietnam (86,000 RB), Turkiye (76,300 RB), Pakistan (49,800 RB), Bangladesh (22,900 RB), and Costa Rica (13,200 RB).Net sales of 38,600 RB for 2025-26 were reported for the week for Malaysia (26,400 RB), Costa Rica (11,000 RB), and Japan (1,200 RB). The exports of 153,500 RB were down 31 per cent from the previous week and 19 per cent from the prior four-week average. The destinations were primarily to Pakistan (38,700 RB), Vietnam (30,500 RB), China (23,400 RB), Mexico (10,200 RB), and Turkiye (9,400 RB).Net sales of Pima totalling 7,200 RB for 2024-25 were up 18 per cent from the previous week and 69 per cent from the prior four-week average. Increases primarily for Peru (2,300 RB), Hong Kong (2,200 RB), India (1,200 RB), Egypt (900 RB), and Turkiye (400 RB) were offset by reductions for Italy (300 RB).Exports of 7,900 RB were up noticeably from the previous week and up 20 per cent from the prior four-week average. The destinations were primarily to Peru (3,200 RB), India (2,300 RB), China (1,100 RB), Turkiye (500 RB), and Pakistan (400 RB).Insights In the week ending January 23, 2025, US Upland cotton sales for the 2024-25 season decreased by 20 per cent weekly but increased by the same margin compared to the four-week average, with significant exports to Vietnam and Turkiye. Pima cotton sales also showed an uptick. However, overall cotton exports fell by 31 per cent from the previous weekRead more :- Indian rupee opened flat at 86.63 against US dollar

In relation to the US dollar, the Indian rupee opened flat at 86.63.Indian rupee opened almost flat at 86.6338 against the US dollar, as compared to 86.6250 at previous close against the greenback.The Economic Survey for 2024-25 will be tabled before both the Houses of Parliament on January 31, the first day of the Budget Session, presenting the Finance Ministry's view on the state of the economy.Read More :- India Budget 2025-26: Will demands of textile industry be addressed?