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Rupee opened 05 paise higher at 89.93/USDIndian rupee opened marginally higher at 89.93 per dollar on Tuesday against Monday's close of 89.98.read more :- Bangladesh textile and garment bodies seek restoration of local yarn incentives

Bangladeshi Textile Industry Demands Restoration of Yarn Incentives Amid Rising Cost PressuresBangladesh’s ready-made garment (RMG) exporters and textile millers have jointly intensified calls for the restoration of government cash incentives on the use of locally produced yarn, warning that the recent policy changes could weaken the country’s textile–apparel supply chain and hurt export competitiveness.Leading industry bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA), have urged the Ministry of Finance to reinstate a 5% cash incentive on local yarn usage. The request follows a recent reduction in the incentive to 1.5% as part of Bangladesh’s transition from Least Developed Country (LDC) status.Industry leaders argue that the sharp cut has increased production costs for exporters and weakened the backward linkage textile sector. They believe restoring higher incentives would help boost local value addition, which is becoming increasingly important for maintaining competitiveness under evolving global trade conditions, including the United States’ reciprocal tariff framework.In a letter dated December 24, BTMA President Shawkat Aziz Russell highlighted multiple pressures facing the sector, including geopolitical tensions from ongoing global conflicts, depreciation of the taka, rising gas tariffs, higher labour costs, and disruptions in energy supply. The association has also requested an extension of the export cash incentive scheme under Bangladesh Bank FE Circular No. 28, proposing that it be extended from December 31, 2025, to December 31, 2028.Exporters have additionally suggested a 10% direct incentive for spinning mills to revive domestic yarn production and offset competition from cheaper imports, particularly from India. Many local mills are reportedly facing large unsold inventories, forcing them to reduce production and operate below capacity.Industry stakeholders warn that without adequate incentive support, Bangladesh’s backward linkage industry could weaken further, potentially disrupting yarn supply for the RMG sector. Together, textiles and apparel account for nearly 85% of Bangladesh’s total export earnings and remain critical to foreign exchange stability.Stakeholders also note that WTO rules allow developing economies transitional policy support during adjustment periods. They question Bangladesh’s move toward phasing out cash incentives while competing textile-exporting countries continue to support their industries through subsidies and policy incentives.With the fiscal year-end approaching, exporters and millers are closely watching government decisions, as the incentive framework is seen as crucial for sustaining export growth and maintaining the strength of Bangladesh’s industrial base.Read More :- The rupee closed 5 paise lower against the dollar at 89.98.

On Monday, the Indian rupee closed at 89.98 against the dollar, compared to its opening rate of 89.93.At the close of the market, the Sensex fell by 345.91 points or 0.41 percent to 84,695.54, and the Nifty declined by 100.2 points or 0.38 percent to 25,942.10. Approximately 1395 shares advanced, 2595 declined, and 144 remained unchanged.Read More :- Tariff impact to moderate H2 FY26 Indian cotton yarn realisation: ICRA

ICRA: Tariff Impact on Cotton Yarn to Ease in H2 FY26Following a flattish H1 FY26, the impact of US tariff on Indian cotton spinners is expected to moderate cotton yarn realisation in H2, ICRA said.Cotton spinners' revenues are projected to drop by 4-6 per cent in FY26 and margin contraction is likely to be 50-100 bps.Moderation in cotton prices is likely to offset the impact to an extent.Material expansion in capacity creations is not expected in FY26.Following a flattish first half (H1) of fiscal 2025-26 (FY26), the trickle-down effect of US tariff on Indian cotton spinners is expected to moderate cotton yarn realisation in the second half, according to ICRA.Revenues of cotton spinners are projected to decline by 4-6 per cent in FY26 and margin contraction is likely to be 50-100 basis points (bps). Moderation in cotton prices is expected to offset the impact to an extent.Any positive developments around the ongoing tariff-related negotiations with the United States could help soften the impact to an extent, the Moody’s Ratings affiliate said in a report titled ‘Indian Cotton Spinning Industry: Trends & Outlook’After witnessing a modest recovery in FY25 with increase in domestic yarn consumption by 2 per cent year on year (YoY), the Indian cotton spinning industry, is navigating a challenging phase in FY26 amidst a mix of stable domestic demand and effects of reciprocal and punitive tariffs levied by the United States on Indian apparel exports.To mitigate the impact, Indian apparel exporters are providing sizeable discounts, which are being absorbed throughout the value chain (including spinners).The import duty exemption on cotton imports in India till December 2025 and recent relaxation on quality control orders for both viscose staple fibre (VSF) and several yarns and polyester fibres is likely to moderate raw material prices for manmade fibre (MMF) yarn manufacturers, it said.“While this supports readymade garments manufacturers with access to raw material at competitive prices, it exposes domestic MMF yarn manufacturers to competition from import suppliers,” noted ICRA.Domestic cotton fibre prices fell by around 3 per cent month on month (MoM) in November 2025. Average cotton yarn prices fell by 4 per cent.This resulted in contribution levels moderating to ₹96/kg in November 2025 from ₹103 per kg in H1 FY26. ICRA anticipates contribution levels are likely to stabilise at ₹98-100 per kg for FY26 due to moderation in realisation expected in H2 FY26.ICRA's sample set of 13 companies, which accounts for 25-30 per cent of the industry's revenue, is expected to report a 4-6 per cent decline in revenues on a YoY basis in FY26.Additionally, margins are expected to contract by 50-100 basis points in FY26, primarily due to weaker performance expected in H2.Given the available capacities, material expansion in capacity creations is not expected in FY26 in the sector, ICRA added.READ MORE :-The rupee opened 8 paise lower at 89.93/USD.

The rupee opened 8 paise lower at 89.93 per dollar.The Indian rupee opened at 89.93 against the dollar on Monday, compared to its previous close of 89.85.READ MORE :-  TASMA urges Finance Minister to extend duty-free cotton import facility

TASMA requests that the Finance Minister expand the duty-free cotton import program.It will help mills in the country to overcome shortage of the natural fibre and be competitiveThe Tamil Nadu Spinning Mills Association (TASMA) has urged Finance Minister Nirmala Sitharaman to extend duty-free imports of cotton beyond December 31, 2025, as the country could face a cotton shortage in view of lower production.TASMA President A P Appukutty, in a letter to the Finance Minister, said extending duty-free imports may ease the availability of cotton and help mills to competitively price their products in the global market. Welcoming the government’s move to extend duty-free imports from September 30, 2025, to December 31, 2025, he said it helped mills to import cotton at a price lower by 11 per cent and offer their products at a competitive price in the global market. The decision proved crucial when the industry faced a critical situation due to the imposition of 50 per cent tariffs by the US on all Imports.Lower production estimatePointing to the Committee on Cotton Production and Consumption, estimating cotton production for this season (October 2025-September 2026) lower at 292.15 lakh bales (170 kg), Appukutty said domestic availability will be the lowest compared to the past few years. Extending the duty-free imports further will benefit mills, particularly at a time when cotton arrivals are reported to be low.Read More :- China's Xinjiang achieves record cotton output in 2025

China's Xinjiang achieves record cotton output in 2025Harvesting machines shuttle among the cotton fields in the Mongolian Autonomous Prefecture of Bayingolin, northwest China's Xinjiang Uygur Autonomous Region, September 29, 2025.Northwest China's Xinjiang Uygur Autonomous Region posted a record cotton output of over 6 million tonnes in 2025, official data showed on Friday.The region produced 6.165 million tonnes of cotton this year, accounting for 92.8 percent of the national total, according to the National Bureau of Statistics.Xinjiang's cotton planting area has expanded to nearly 38.88 million mu (about 2.59 million hectares), which was up 5.9 percent year on year, and its average yield has come in at 158.6 kilograms per mu, up 2.4 percent year on year.Favorable weather conditions throughout the growing season helped boost output, with strengthened policy support, advances in agricultural technology, and improved talent development also contributing to higher productivity, experts say.The overall mechanization rate of cotton cultivation and harvesting in Xinjiang is expected to exceed 97.5 percent this year, boosting large-scale, mechanized and intelligent cotton production further.Xinjiang remains China's largest cotton-producing region. The country's cotton output rose 7.7 percent from 2024 to 6.641 million tonnes in 2025.READ MORE :- The Textiles Ministry is set to receive ₹1,100 crore from the Cotton Productivity Mission to boost quality and manufacturing

CCI sells 94% cotton stock via e-auctions; ₹6,000 crore Cotton Productivity Mission set to boost sectorNew Delhi: The Cotton Corporation of India (CCI) has sold 94.28% of its 2024–25 cotton procurement through online auctions this week, while largely maintaining prevailing price levels, indicating stable market operations despite sectoral pressures.Meanwhile, the Textiles Ministry is expected to receive over ₹1,100 crore under the government’s ₹6,000 crore Cotton Productivity Mission, a five-year initiative announced in the Union Budget aimed at reviving India’s stressed cotton ecosystem.The mission, which accounts for roughly 22% of the total outlay for the scheme, is designed to modernise textile infrastructure, improve lint quality, and strengthen the farm-to-fabric value chain. However, the final allocation is still awaiting Cabinet approval, which has reportedly been delayed for nearly a year.Declining cotton output raises concernIndia’s cotton sector continues to face structural challenges, with production falling for three consecutive years—from 32.52 million bales in 2023–24 to 29.22 million bales in 2025–26. The cultivated area has also shrunk by around 2 million hectares over the past four years.Productivity remains a major concern, with India’s yield stuck below 5 quintals per hectare, compared to a global average of 9 quintals and around 10 quintals per hectare in the United States.Fund allocation across departmentsUnder the ₹6,000 crore mission, the Department of Agriculture and Farmers Welfare will receive the largest share of over ₹4,000 crore (about 69%). The Indian Council of Agricultural Research (ICAR) will receive nearly ₹600 crore (around 9%), while the Textiles Ministry has been allocated ₹1,100 crore for textile-side interventions.The distribution has reportedly triggered internal differences, with concerns raised by ICAR scientists over limited funding despite being tasked with designing and implementing key mission objectives.Focus on quality and infrastructure upgradeThe Textiles Ministry plans to utilise its allocation to improve ginning infrastructure, bale handling systems, and lint quality assessment processes. Officials argue that while farm-level production is important, post-harvest handling plays a critical role in determining the quality of cotton supplied to mills.Poor ginning practices and contamination during handling have been identified as major factors affecting fibre quality, forcing mills to either depend on imported cotton or use lower-grade domestic supply.Long-term competitiveness goalsThe mission also aligns with India’s broader textile ambitions, including building a $250 billion industry by 2030, with $100 billion targeted from exports. Cotton remains central to India’s textile sector, supporting millions of livelihoods and export earnings.Policy makers believe that strengthening both agricultural productivity and processing infrastructure is essential to improving competitiveness and ensuring a stable supply of high-quality domestic cotton for the textile industry.Read More :- The Cotton Corporation of India (CCI) kept its prices unchanged this week and sold 94.28% of its 2024-25 cotton procurement through e-auctions.

This week, the Cotton Corporation of India (CCI) sold 94.28% of its 2024–2025 cotton procurement through online auctions while maintaining its current prices.During the entire week from 22 December to 26 December 2025, CCI conducted online auctions at its mills and trader sessions, achieving total sales of approximately 1,00,400 bales. Weekly Sales PerformanceDecember 22, 2025:CCI sold 28,100 bales, of which 13,200 bales were purchased by mills and 14,900 bales by traders.December 23, 2025:Total sales stood at 21,300 bales, with mills buying 6,200 bales and traders accounting for 15,100 bales.December 24, 2025:Sales amounted to 19,300 bales, including 11,400 bales acquired by mills and 7,900 bales by traders.December 26, 2025:The highest sales of the week were recorded on this day, with 31,700 bales sold. Mills purchased 6,800 bales, while traders lifted a significant 24,900 bales.CCI sold a total of approximately 1,00,400 bales during the week, taking its cumulative sales to 94,28,100 bales for the season, which is 94.28% of its total purchases for 2024-25.Read More :- The rupee closed 01 paisa higher against the dollar at 89.85

On Friday, the Indian rupee opened at 89.86 against the dollar and closed 01 paisa higher at 89.85.The Sensex closed 367 points lower; the Nifty at 26,042; IT and auto stocks saw the biggest declines.Read More :- CCI cotton procurement 50 lakh bales at MSP till now

The rupee opened 8 paise lower at 89.86/USD.The domestic currency opened at 89.86 against the US dollar, compared to its previous closing of 89.78 against the dollar.READ MORE :-  2025 year-end achievement - India's Ministry of Textiles