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Radha Lakshmi Group CMD Atul Ganatra on CNBC Awaaz: How US–Bangladesh Trade Will effect India’s Textile IndustryDuring an exclusive interview with CNBC Awaaz, Mr. Atul Ganatra, CMD of Radha Lakshmi Group, shared key insights on the recently announced trade developments between Bangladesh and the USA, and their potential effects on the Indian cotton and textile industry.(SMARTINFO)Atul Ganatra highlighted that under the new trade arrangement, Bangladesh can import U.S. cotton and export finished garments to the U.S. at zero duty.This policy won’t significantly impact India’s garment and apparel exports,” he stated, “but it could affect India’s cotton and yarn trade — as Bangladesh is one of our largest buyers.(SMARTINFO)India’s Cotton & Yarn Trade Impact India exports 16–18 lakh bales of cotton to Bangladesh annually.Bangladesh also imports 45–50% of India’s total cotton yarn exports, as local spinning in Bangladesh remains less viable.* If Bangladesh shifts to U.S. cotton for its production, India’s cotton and yarn exports may see a dip.However, Atul Ganatra emphasized that the Indian garment and apparel sector remains strong, thanks to:A robust FTA with the European Union, effective from July onwards.(SMARTINFO)New trade agreements with six Gulf countries, soon to be implemented. These will provide a major boost to India’s textile exports and strengthen its global position.India’s Competitive Edge: Power & ProductionAtul Ganatra dismissed the old notion that Bangladesh enjoys lower power costs.“That’s no longer true. Today, India’s power cost is more competitive due to progressive state policies allowing captive solar and wind power for spinning and weaving mills,” he said. This has significantly reduced energy costs and improved India’s overall textile production competitiveness.(SMARTINFO)The U.S. Cotton FactorIt will take 3–4 months for U.S. cotton shipments to reach Bangladesh — including logistics and manufacturing time — meaning no immediate disruption for Indian exporters. Moreover, the clarity on the percentage of cotton that the U.S. will allow Bangladesh to import is still pending.Atul Ganatra also pointed out that the U.S. is actively seeking new cotton buyers after China reduced its imports due to a 34% tariff imposed last year.(SMARTINFO)“In the near future, India too may explore similar trade arrangements with the U.S.,” he said. “If Indian spinning and garment units source cotton from the U.S., zero-duty access could open up significant export advantages.”Despite short-term challenges in cotton and yarn exports, India’s textile and garment sector stands resilient and future-ready. With supportive trade deals, competitive power policies, and increasing global demand, the Indian textile industry is well-positioned for sustained growth.(SMARTINFO)read more :- Cotton Stock and Market Position – 31 January 2026

A SUMMARISE REPORT ON PRESENT COTTON SCENARIO (POSITION AS ON 31/01/2026) (Each bale170 kgs.)▪️Total pressing estimate during crop year 2025-2026 is estimated as 317.00 lakh bales & upto 31-01-2026 total 220.58 lakh bales have been pressed. Considering above till Jan-2026 end total availability of cotton may be assesed as 316.71 lakh bales including import of 35.00 lakh bales and Opening stock of 60.59 lakh bales.▪️Cotton consumption in this cotton season may touch 305 lakh bales and upto 31-01-2026 about 104.00 lakh bales reported as consumed. (SIS)▪️Export upto Jan 2026 end is found total 6.00 lakh bales against estimation  for this season year of 15.00 lakh bales.▪️It is revealed that during current crop  end total 50.00 lakh bales may be imported. Upto 31 Jan 2025 about 35 lakh bales have been arrived at different indian ports. (SIS)▪️Kepping in view the above , total available stock as on 31.01.2026 is calculated to the tune 316.17 lakh bales, consisting of opening stock, total pressing & import. (SIS)▪️As on 31 Jan 2026 stock with the mills is found to the tune of 75.00 lakh bales where as with CCI/MFED MNCS, Ginner , Treaders and Exporters it comes around 131.17 lakh bales.read more :- The rupee closed 13 paise higher at 90.58 against the dollar.

On Tuesday, the Indian rupee closed 13 paise higher at 90.58 against the dollar, after opening at 90.71.At close, the Sensex was up 208.17 points or 0.25 percent at 84,273.92, and the Nifty was up 67.85 points or 0.26 percent at 25,935.15. About 2456 shares advanced, 1605 shares declined, and 155 shares unchanged.read more :- Cotton crop affected by natural virus

Disease in cotton crop: Due to natural virus, cotton bolls are rotting and falling off.Ahilyanagar Maharashtra: Cotton bolls were rotting and bolls were falling off during the Kharif season in Ahilyanagar district. Farmers had complained that this was happening due to bad seeds. After this, the District Level Committee of the Agriculture Department, along with a team of scientists from Mahatma Phule Agricultural University, inspected the cotton crops of the complaining farmers and submitted a report. It was told that boll rot and boll shedding of cotton was not caused by bad seeds but due to the spread of a natural virus and the complaints of the farmers have been resolved.Cotton is cultivated in about 1.5 lakh hectare area in Ahilyanagar district. This year, due to continuous rains and heavy rains, Kharif crops have suffered huge losses in many areas. More than 100 farmers from Rahuri, Nevasa and Sangamner talukas had complained to the Agriculture Department that cotton growing companies had sold defective seeds. These include boll rot and cotton boll loss.According to the complaint received by the Agriculture Department, the District Level Committee of the Agriculture Department first irrigated the cotton crop of the complaining farmer and then re-investigated it in collaboration with the scientist of Mahatma Phule Agriculture University. According to information received from Agriculture Department and University scientists, this year certain varieties of cotton were more affected by different viruses.The cotton varieties of that company were more affected by the virus. Because of this, ball rot disease occurred in that variety of cotton and the cotton balls fell, causing huge losses. The scientist has given the investigation report in this regard to the Agriculture Department and more than 100 concerned farmers who complained.Heavy damage to cotton due to heavy rainsCotton crop in 2 lakh hectares has been affected due to heavy and continuous rains in the last monsoon in Ahilyanagar district. In this, rainfall reduces in the month of June. However, it starts increasing from July. In this, 8 hectares of cotton crop has been affected in July, 31.26 hectares in August and 1 lakh 71 thousand hectares in September. Because of this, farmers are saying that production has reduced this year.read more :- Lower duty on American cotton, excitement in Indian textile industry

Indian cotton textiles industry upbeat on cheaper US cotton importsThe Indian cotton textiles industry has expressed optimism over the possibility of importing US cotton at lower tariffs, as expectations rise around new trade agreements with the United States and the European Union. Industry stakeholders believe that easier and cheaper access to imported cotton could help meet growing demand in the coming years and improve competitiveness in global markets.With domestic cotton production stagnating over the past few years and prices remaining higher than global levels, mill owners and trade bodies are urging the government to reduce import duties or adopt a quota-based duty concession system. Currently, cotton imports (excluding extra-long staple varieties) attract around 11% duty, though industry experts suggest this could be reduced or waived for US cotton under a trade arrangement.Industry leaders have proposed several possible policy options, including a 50% reduction in import duty for US cotton, duty-free imports up to a fixed quota, or a model similar to the Australian cotton import arrangement. Some traders estimate that duty-free imports could be allowed for up to 50,000 tonnes, while others expect a broader quota of 5–10 lakh bales.Experts say high domestic prices are making imports attractive. The Cotton Corporation of India (CCI) is currently offering cotton at around ₹56,500 per candy (356 kg), while imported cotton is landing at below ₹54,000 per candy. Brazilian cotton, for instance, is reported to be even cheaper, with landed costs near ₹50,000 per candy.According to industry representatives, US cotton is also preferred for its quality, consistency, and low contamination levels, which are important for export-oriented textile units. They argue that India’s cotton output has remained stagnant due to declining yields, pest attacks such as Pink Bollworm, and delayed adoption of new technologies.Industry bodies such as the Tamil Nadu Spinning Mills Association (TASMA) and the Cotton Association of India (CAI) believe that trade agreements with the US and EU could significantly increase cotton demand and help stabilize supply chains. Some estimates suggest that imports may double in the current cotton season.Experts also note that lower-cost imports could improve yarn production efficiency, as only about 65% of India’s yarn capacity is currently being utilized. Increased availability of raw cotton is expected to boost domestic consumption of yarn and support the textile value chain.While details of the proposed trade mechanism are still awaited, the industry remains hopeful that policy changes will support sustainable growth and reduce raw material costs for mills across the country.read more :- Rupee opened 05 paise stronger at 90.71 per dollar

 Rupee opens 05 paise up at 90.71/USD Indian rupee opened higher at 90.71 per dollar on Tuesday versus previous close of 90.76.read more :- CAI demands zero duty on ELS cotton

Zero duty on ELS cotton to boost textiles exports, says CAIThe Indian government’s decision to move extra long staple (ELS) cotton to the First Schedule, effectively reducing customs duty to zero, is expected to boost India’s high-value textile and apparel exports, according to the trade body Cotton Association of India (CAI). The Budget 2026-27 has moved ELS cotton to the First Schedule (zero customs duty).Vinay N Kotak, Chairman, CAI said the Budget is designed as a futuristic, growth-oriented blueprint, aimed at establishing India as a global manufacturing hub and securing its position as the world’s third largest economy.“One of the important changes in the Customs Schedule, which is aimed at providing relief to enable manufacturing is to move Extra Long Staple Cotton to First Schedule (zero Customs Duty). This will boost exports of our finished textile products and increase India’s share in the world textile markets,” Kotak said in a statement. India imports around 5-7 lakh bales of ELS cotton mainly from USA and Egypt, he said.Improving accessCotton with fibre length of 33 mm and above is called ELS cotton, a key input for manufacturing premium yarns, fine fabrics and high-end garments. Since domestic production of ELS cotton is limited, Indian textile manufacturers depend on imports to meet quality requirements for export markets. The removal of import duty is expected to lower raw material costs and improve access to high-quality fibre, enhancing the global competitiveness of Indian exporters.The ELS cotton is grown in approximately 2 lakh hectares, predominantly under the DCH-32 variety in parts of Karnataka such as Dharwad, Haveri and Mysuru districts, also in Coimbatore, Erode and Dindigul in Tamil Nadu and in Ratlam in Madhya Pradesh.read more :- Last date for cotton MSP purchase 10 February

Cotton purchase at support price till 10th FebruaryHanumangarh Cotton will be procured by Cotton Corporation of India (CCI) at support price till February 10. In this regard, Director of Agricultural Marketing Department, Jaipur, Rajesh Kumar Chauhan has issued a letter to the regional joint directors and deputy directors of the department.Instructions have been given in the letter that all the cotton farmers registered on Cotton Kisan Mobile App of Cotton Corporation of India should be made aware to book slots and sell their cotton before the last date of purchase. Also, it has been asked to ensure that farmers can sell their cotton before February 10.

The Indian rupee lower 21 paise to close at 90.76 per dollar on Monday, compared to its opening price of 90.55 in the morning.At close, the Sensex was up 485.35 points or 0.58 percent at 84,065.75, and the Nifty was up 173.60 points or 0.68 percent at 25,867.30. About 3003 shares advanced, 1181 shares declined, and 152 shares unchanged.read more :- CITI welcomes tariff cut, clarity on cotton

CITI welcomes visibility on US tariff reduction, seeks clarity on cottonThe Confederation of Indian Textile Industries (CITI) heartily welcomes the reduction of US tariffs to 18% with effect from February 7, 2026. CITI expresses its heartfelt gratitude to US President Mr. Donald Trump and Indian Prime Minister Mr. Narendra Modi for successfully resolving the tariff issue."The biggest problem for the Indian textile and apparel sector was earlier the 50% tariff imposed by the US on Indian goods, as the US is India's largest foreign market. Now this tariff has been removed, allowing India's textile and apparel exports to compete effectively in the US again. With the 18% tariff, we will also get a slight tariff advantage compared to our nearest competitors, Vietnam and Bangladesh," said Mr. Ashwan Chandran, President, CITI.“This extremely positive development is a major boost to India's target of $100 billion textile and apparel exports by 2030, the 'Make in India' initiative and employment generation in the textile and apparel industry driven by small and medium enterprises (MSMEs). CITI is extremely grateful to Honorable US President Mr. Donald Trump, Honorable Prime Minister Shri Narendra Modi and all the Ministers and senior officials involved in the US and India for this achievement.”China, Vietnam, India, and Bangladesh are the largest exporters of textiles and apparel goods to the US. The US tariff rate on both Vietnam and Bangladesh is set at 20%. An analysis by CITI of US Office of Textiles and Apparel (OTEXA) data showed that US imports of textiles and apparel from India declined by 31.4% in November 2025 compared to November 2024.CITI president said the industry body was waiting for more clarity on cotton. There is extensive coordination between the United States and India on cotton. India's textile and apparel exports are mainly dependent on cotton.The Joint Statement of the United States and India on the Framework for an Interim Agreement on Reciprocating and Mutually Beneficial Trade (Interim Agreement) states: "India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of U.S. food and agricultural products, including dried distillers grains (DDG), red sorghum for animal feed, nuts, fresh and processed fruits, soybean oil, wine and spirits, and other products."CITI believes that removal of import duty on cotton of all varieties will reduce the gap between domestic and global prices and help restore the competitiveness of India's spinning and textile industries. This step will also ensure that the minimum support price (MSP) and other farmer-support mechanisms can function as intended without any significant price distortion. In the current cotton season, the MSP of the cotton variety has increased by about 8%.read more :- Cotton import increased due to trade deal, farmers in trouble, slight relief in textile sector

Trade deal will increase cotton imports! Farmers in crisis and signs of recovery in textile industryNagpur: Due to India-America 'trade deal', efforts have started to eliminate 11 percent import duty on cotton. Already, cotton imports are continuously increasing, while exports are decreasing. With this deal, import of cotton from America will increase and the price of cotton in the domestic market will come under pressure and farmers will have to suffer financial losses. The Indian textile industry, which exports very little, will benefit from the deal as it will get cotton at cheaper prices.The Indian textile industry requires 315 to 320 lakh bales of cotton every year to meet the export and domestic demand of textiles. Every year 330 to 340 lakh bales of cotton are produced in India. India requires 12 to 15 lakh bales of extra long yarn cotton to produce premium quality textiles.The production of this cotton is 3 to 4 lakh bales and every year 10 to 12 lakh bales have to be imported. India has the largest production of long and medium yarn cotton. Since cotton prices in the global market are lower than in India, Indian textile industries import long yarn cotton in the name of extra long yarn and reduce the price. If the cotton price falls below the MSP, the government purchases 22-27 per cent of the total cotton production at the MSP rate. Farmers will be hit the hardest by duty-free cotton imports due to the 'trade agreement'.India's textile exportsChina ranks first in textile exports in the world market, while India ranks sixth. India's textile export share is only four percent. 25 to 30 percent of this cloth is exported to America. The European Union, Vietnam, Bangladesh and Türkiye are India's major competitors.How does the textile industry benefit?The rate of rupee in the year 2021-22 was Rs 1 lakh 5 thousand. Therefore, the prices of clothes increased in the year 2022-23. Rupee prices declined by 40 per cent in 2022-23 to reach a surplus of Rs 62,000. However, the industries did not reduce the rates of clothes by 40 percent. At present the rates of cotton are between 55 to 57 thousand rupees and the rates of clothes are between 1 lakh rupees.A missed opportunity for India in VietnamThere is huge demand for Bangladeshi clothes in the world. Bangladesh's textile industry is dependent on Indian cotton.Due to political instability, Bangladesh's position in the global textile market faltered and India got an opportunity to gain its customers. Vietnam seized this opportunity as the Indian government ignored it.read more :- New opportunity for textile industry from India-US deal