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Ahead of the Budget, Central Government Under Pressure Over Cotton Import DutyFarmers oppose reduction, textile industry insists on removalAhead of the upcoming 2026-27 budget, the central government is caught between conflicting demands from farmers and the textile industry regarding import duties on cotton. In February 2021, the government imposed an 11 percent import duty on cotton to protect domestic farmers, which includes basic customs duty, agricultural infrastructure cess, and surcharge.The textile industry argues that the duty should be removed due to declining domestic production and quality constraints affecting competitiveness. Farmers' organizations, however, contend that cotton prices have already fallen from ₹57,000 to ₹52,500 per candy, and a reduction in the duty would further impact their income.According to sources, the government has received representations from both sides, but given the current weak cotton prices, an immediate reduction or removal of the duty is unlikely. A government official said, “Cotton prices have fallen and farmers' income has been affected, so a reduction in the duty is not likely.”The Confederation of Indian Textile Industry (CITI) argues that removing the import duty would help bridge the production gap and boost export competitiveness. The organization recently met with Agriculture Minister Shivraj Singh Chauhan to demand the permanent removal of the duty.Cotton production in India is the livelihood base for approximately six million farmers and 40 to 50 million people employed in the textile sector. The textile and apparel sector is one of the country's largest employers, directly employing over 45 million people.Pressure has also increased on the export front. Exports have been impacted since mid-2025 after the US imposed a 50 percent tariff on Indian textiles. In December 2025, textile and apparel exports registered a meager 0.4 percent year-on-year growth. In conclusion, the issue of cotton import duties has become a balancing act for the central government — weighing farmers' interests against the competitiveness of the textile industry.read more :- CM Bhupendra Patel: Announcement of amendment in Gujarat Textile Policy

CM Bhupendra Patel announces amendments to Gujarat Textile PolicyGujarat CM Bhupendra Patel has decided that certain units engaged in non-polluting textile manufacturing will be granted benefits under the Textile Policy-2024. Aiming to further strengthen and empower women’s self-help groups (SHGs), Gujarat Chief Minister Bhupendra Patel Sunday announced amendments to the Gujarat Textile Policy, 2024.In a release, the chief minister’s office stated, “…the Chief Minister has issued directions to make important amendments in certain provisions of the Textile Policy. Accordingly, one or more Self Help Groups consisting of women associated with similar livelihood objectives, registered under the National Rural Livelihood Mission and the National Urban Livelihood Mission, or other voluntary Self Help Groups, will be eligible to receive benefits under the Textile Policy.”It added, “The CM has also taken another decision that units engaged in non-polluting textile manufacturing activities related to garments, apparel and made-ups, stitching, embroidery, and other activities, which fall within municipal area limits in the state, will also be granted benefits under the Textile Policy-2024.”As per the release, “As a result of this decision… non-polluting textile units located within municipal corporation limits in the state will receive extensive benefits from the scheme. Additionally, employment generation in urban areas will be encouraged and local employment opportunities for skilled and semi-skilled workers will increase. Recognition of non-polluting textile activities in urban areas will also create a favourable environment for the growth of Micro, Small and Medium Enterprises (MSMEs).”It stated that encouragement to non-polluting activities will help achieve the objectives of environmental protection as well as balanced and sustainable industrial development.“Along with the benefits available to Self Help Groups (SHGs) under the Gujarat Textile Policy-2024, the outcome of this decision… will enable women of the state to become more economically empowered and self-reliant. Such measures will provide them with greater opportunities and empowerment, enabling them to become stronger in society, the economy, and the business sector,” the release added.read more :- Demand to suspend bond facility on 10-30 count yarn import

Commerce Ministry Proposes Suspension of Bond Facility for 10–30 Count Yarn ImportsThe Ministry of Commerce has proposed suspending duty-free import benefits for 10–30 count cotton yarn under the bonded warehouse scheme, aiming to protect domestic textile mills. In a formal letter sent to the National Board of Revenue (NBR) on January 12, the ministry recommended withdrawing the bond facility for this yarn category. However, NBR officials have stated that no official order has been issued so far.The ministry has also urged authorities to instruct customs houses to clearly mention yarn count in the commercial description on import bills of entry to ensure better transparency and monitoring.In textile terminology, yarn “count” refers to its thickness and fineness. The 10–30 count range is considered medium to coarse and is a key raw material for the country’s large knitwear sector. With the removal of duty-free benefits, importers may now face nearly 40% in taxes, which exporters warn could significantly impact more than half of the country’s ready-made garment (RMG) exports.Exporters have raised concerns that local yarn producers are already tightening supply, with some reportedly halting new orders. Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), criticized the move as arbitrary and warned of its negative impact on the industry.The interim government is currently evaluating several policy options, including stricter import controls, limiting duty-free yarn imports, and incentivizing the use of locally produced yarn. These considerations come amid growing pressure to support domestic spinning mills, particularly against a surge in subsidized yarn imports from India.Earlier this month, the Bangladesh Trade and Tariff Commission (BTTC) held discussions with representatives from the Bangladesh Textile Mills Association (BTMA) and garment exporters. While there was broad agreement on protecting the textile value chain, no consensus was reached due to differing interests between millers and exporters.Commerce Secretary Mahbubur Rahman stated that the government is actively reviewing the issue and working toward a balanced solution.Bangladesh’s RMG sector, the world’s second-largest exporter, has developed strong backward linkages over time. Local textile mills currently supply around 60% of woven fabric demand and nearly all yarn required for the knitwear sector. Despite this, spinning mills have been under significant financial stress for over a year, often selling yarn below production cost to remain competitive.read more :- Greenland dispute: Trump imposes 10% tariff on Denmark, UK and France

Trump Imposes 10% Tariff On Denmark, UK, France For Opposing Greenland Plan.US President Donald Trump on Saturday declared that he would charge a 10 per cent tariff on European countries because of their opposition to America's Greenland takeover. Countries like Denmark, the UK, France, and other EU countries will be hit with US tariffs from February 1.In a post on Truth Social, Trump announced that the tariffs would be raised to 25 per cent on June 1 if a deal is not reached for "the Complete and Total purchase of Greenland" by the United States.The decision comes a day after Trump warned that he could impose tariffs on countries that do not support his Greenland plans.European leaders have said that it's only for Denmark and Greenland to decide on matters concerning the territory, and Denmark said this week that it was increasing its military presence in Greenland in cooperation with allies.The White House has said Trump's aim to take over Greenland would not be affected by the European military presence, which French Armed Forces Minister Alice Rufo said was a sign that the continent was prepared to defend sovereignty.Trump has been insisting for quite a while now that the US needs the mineral-rich Greenland for its "national security". Earlier this week he said that anything less than Greenland being in US hands is "unacceptable". The Republican leader has justified his calls for a takeover by saying that it is to prevent the territory from being occupied by China and Russia.On Wednesday, after a meeting in Washington, Danish representatives said Copenhagen and Washington were in "fundamental disagreement" over Greenland's future.Thousands of people marched through Copenhagen on Saturday to protest in support of their own self-governance amid threats of US takeover. Protesters carried signs such as "We shape our future", "Greenland is not for sale" and "Greenland is already GREAT".Denmark's foreign minister on Thursday ruled out any US acquisition of Greenland, after the White House said a European military mission to the Arctic island had no effect on Donald Trump's territorial ambitions. Lars Lokke Rasmussen said, "This is out of the question. It's not what we want in Denmark, nor in Greenland and it runs counter to all international rules. It infringes on sovereignty."Greenland's prime minister, Jens-Frederik Nielsen, said on Tuesday that "if we have to choose between the United States and Denmark here and now, we choose Denmark. We choose NATO. We choose the Kingdom of Denmark. We choose the EU."read more :- CCI Cotton Sales Report 2024-25

State-wise CCI Cotton Sales Details – 2024-25 SeasonThe Cotton Corporation of India (CCI) increase its cotton prices by up to ₹1000- ₹1300 per candy this week and sold approximately 98,700,800 bales for the season 2024-25. This represents around 98.70% of the total cotton procured so far this season.A state-wise breakdown of sales indicates strong activity from Maharashtra, Telangana, and Gujarat, which together account for over 83.84% of the total sales to date.This data underscores CCI’s proactive efforts in stabilizing the cotton market and ensuring steady supply across key cotton-producing states.

India's textile and apparel exports grew for the second consecutive month in DecemberDespite a weak global trade environment and 50 per cent tariffs imposed by the US, the country's largest export market for the sector, India's textile and apparel exports have demonstrated resilience in December, growing for the second consecutive month on a year-on-year basis.The textile ministry said textile and apparel exports grew by 0.40 per cent to US$3.27 billion in December 2025 for the second consecutive month after strong growth in November compared to the previous year, reflecting the sector's "adaptability, diversified market presence and strength in value-added and labour-intensive sectors", the textile ministry said.segment wise growthDuring December 2025, export growth was broad-based across key sectors led by handicrafts (7.2 per cent), ready-made apparel (2.89 per cent), and MMF yarn, fabrics and made-ups (3.99 per cent).The ministry said these trends underline India's competitive advantage in value-added manufacturing, traditional crafts and employment-intensive production even amid volatile global demand conditions.calendar year performanceOn calendar year basis (January-December 2025), textile and apparel exports remained stable at US$ 37.54 billion, with significant cumulative growth in handicrafts (17.5 percent), ready-made garments (3.5 percent), and jute products (3.5 percent).The textile ministry said stability at this scale, despite geopolitical tensions and inflationary pressures in key markets, reflects the structural strength of the sector and diverse export basket.promote market diversificationThe highlight of 2025 has been significant market diversification.During January-November 2025, India's textile sector recorded export growth to 118 countries and export destinations compared to the same period in 2024, reflecting a broad improvement in market performance.Strong expansion was seen in both emerging and traditional markets, including the United Arab Emirates (9.5 percent), Egypt (29.1 percent), Poland (19.3 percent), Sudan (182.9 percent), Japan (14.6 percent), Nigeria (20.5 percent), Argentina (77.8 percent), Cameroon (152.9 percent), and Uganda (75.7 percent), as well as key European markets such as Spain (7.9 percent) There was a continuous increase. percent), France, Italy, the Netherlands, Germany and the United Kingdom.global sourcing powerThe ministry said this diverse growth pattern underlines the resilience of India's textile export sector and strengthening India's global market presence across various destinations.Overall, the sustained export momentum, wide market presence, and strong performance of value-added segments reaffirm India's position as a reliable and resilient global sourcing hub for textiles and apparel.With continued emphasis on diversification, competitiveness and MSME participation, the sector is well positioned to increase exports and deepen its integration with global value chains in times to come.read more :- Trump's tariff threat on Greenland issue

Trump threatens to impose tariffs on countries that oppose US claim on Greenland. United States President Donald Trump on Friday threatened to impose tariffs on countries that do not support US control of Greenland.The US president did not elaborate on the details, but has said in the past that the United States needs Greenland from a "national security" perspective."If they don't go along with Greenland I could put tariffs on them, because we need Greenland for national security," Bloomberg quoted Trump as saying at a White House event on health care.Trump has insisted for months that the US should take control of Greenland, a self-governing territory that is part of the Kingdom of Denmark.However, while the White House has confirmed that "all options are on the table" regarding the US annexing the region, this is the first time that Trump has threatened tariffs on countries that do not support the proposal.It came a day after European countries sent a small number of troops to Greenland, while Denmark said it was pressing ahead with plans to establish a "larger and more permanent" NATO presence to protect the island, according to Reuters news agency.The show of support for the region was also to help Denmark prepare military exercises, and was followed by a meeting of officials from the US, Denmark and Greenland.On Friday, a group of US senators and representatives met with lawmakers in the Danish parliament, according to Bloomberg, with protests against Trump's plans scheduled to take place across Denmark on Saturday.Danish Foreign Minister Lars Lokke Rasmussen has also been attending meetings with members of the US Congress in Washington over the past week, following talks with US Vice President JD Vance and Secretary of State Marco Rubio.After talks with Vance and Rubio, Rasmussen said there remain "fundamental disagreements" with Trump over Greenland. According to the AP, during the meetings both sides agreed to form a working group to discuss ways to resolve differences.read more :- CCI to start cotton sales for 2025-26 season next week 

India's CCI to start selling cotton for 2025-26 season next weekThe Cotton Corporation of India (CCI) is set to begin selling cotton procured during the 2025-26 crop season starting January 19. The government agency has announced the terms and conditions for the sale of fully pressed cotton bales on its website. According to trade sources, the CCI has so far procured approximately 8 million bales (170 kg each), and procurement is still ongoing in various states, including Telangana and Maharashtra.Market rebounds, prices rise above MSPCotton prices have seen a significant increase in recent weeks, rising above the Minimum Support Price (MSP) level. This is mainly due to the strengthening of cottonseed prices and the government's decision to end the import duty exemption from December 31. According to Ramanuja Das Bub, a sourcing agent from Raichur, "In the last month, the price of cottonseed has increased by approximately ₹700 per quintal, rising from ₹3,600-3,700 to a high of ₹4,300, and is now at ₹4,100. Similarly, cotton prices have also increased by about ₹4,000 per candy, reaching ₹55,000-56,000. The price of raw cotton has also increased from ₹7,700 to approximately ₹8,200-8,300." He added that now that the CCI (Cotton Corporation of India) has announced its sales plan starting next week, buyers are waiting for their prices.Production Estimates Increased, But Imports Break RecordsWhile production has increased, imports are also at record levels. The trade body Cotton Association of India (CAI) recently increased its cotton production estimate for 2025-26 by 7.5 lakh bales to 317 lakh bales. This increase is due to better-than-expected production in Maharashtra and Telangana.The association has projected record imports of 50 lakh bales this season, higher than the 41 lakh bales imported last year.  By December 31st, 31 lakh bales had already been imported. Due to record imports, the CAI has projected a massive surplus of 122.59 lakh bales at the end of the season, a 56% increase compared to last year.read more :- CCI increased cotton prices, weekly sales 17,500 bales

CCI Raises Cotton Prices by ₹1,000–₹1,300 per Candy; Weekly Sales Touch 17,500 BalesThe Cotton Corporation of India (CCI) increased cotton prices by 1000-₹1300 per candy this week. CCI has now sold 98.70% of the cotton procured during the 2024-25 season through e-auctions.During the week of January 12, 2026 to January 16, 2026, CCI conducted regular online auctions for mills and traders at various centers. These auctions resulted in total weekly sales of approximately 17,500 bales.Weekly Sales ReportJanuary 12, 2026The highest sales of the week were recorded at 9,800 bales, with mills purchasing 6,100 bales and traders purchasing 3,700 bales.January 13, 2026CCI sold 3,100 bales on this day, with mills purchasing 2,600 bales and traders purchasing 500 bales.January 14, 2026Total sales were 4,600 bales. Mills purchased 3,900 bales, while traders purchased 700 bales.January 16, 2026The week ended with no bales sold in both the session on this day.With this week's sales, CCI's total cotton sales for the current season have reached approximately 98,70,800 bales, representing 98.70% of its total procurement under the 2024-25 season.read more :- Textile industry expects duty free cotton from Budget 2026-27

Textile Industry Pushes for Duty-Free Cotton Imports Ahead of Budget 2026–27India’s textile and apparel industry has outlined a series of demands ahead of the Union Budget 2026–27, highlighting concerns over raw material availability, global quality standards, and cost competitiveness. The Budget will be presented by Nirmala Sitharaman on February 1, 2026.The Southern India Mills Association (SIMA) has called for unrestricted duty-free cotton imports, warning that existing import duties could worsen supply constraints. It also proposed a separate classification for recycled and sustainable textile products, removal of import duties on speciality fibres, and elimination of anti-dumping duties on key raw materials such as PTA and MEG.SIMA noted that cotton productivity in India has declined in recent seasons, pushing output below industry requirements. It cautioned that supply gaps could emerge from late 2025 if import restrictions persist. According to the association, a permanent duty-free regime would stabilise prices, improve export competitiveness, and protect jobs in the sector.The industry also warned that India risks losing export orders to competitors like Bangladesh, Vietnam, and Cambodia if raw material availability remains uncertain and costly.In addition, SIMA has urged the removal of import duty on cotton waste, widely used by handloom and powerloom clusters in Tamil Nadu for products such as towels, carpets, and home textiles. The current duty structure, it argued, weakens India’s position in recycled textile exports, especially against Pakistan, while putting pressure on open-end spinning mills.For the man-made fibre (MMF) segment, manufacturers have proposed a dedicated classification for recycled and sustainable textiles to enhance global recognition. They also recommended scrapping anti-dumping duties on PTA and MEG and allowing duty-free imports of speciality fibres not produced domestically, enabling expansion into technical textiles and high-value exports.MSME textile units have sought compliance relaxations aligned with revised MSME definitions, along with improved access to export financing. Industry stakeholders emphasised the need for stronger banking support for export bill discounting, particularly for shipments to Bangladesh, a key market for Indian yarn and fabric.Exporters have also suggested logistics reforms, such as permitting trucks carrying import cargo to transport export goods on return trips along major textile corridors. This would reduce empty runs, cut freight costs, improve efficiency, and lower emissions.The industry further called for faster rollout of technology upgradation subsidies, continuation of export incentives in cash form, and extension of interest subvention schemes for cotton yarn exports. It stressed that cotton yarn remains central to India’s long-term export growth and requires sustained financial support.Finally, the sector has urged stricter action against under-invoiced imports of garments and made-ups through yarn-forward or fabric-forward rules, along with broader credit guarantee frameworks and interest support to shield domestic manufacturers from rising global competition.read more :- Cotton sector hopes for new seed technology

Indian Cotton Sector Hopes for New Seed Technology from the Budget: Atul GanatraAtul Ganatra, Chairman* of the SRCPL Group, said in an interview with CNBC Bajar that cotton productivity in India is extremely low, and the biggest reason for this is outdated seed technology.He stated that the average cotton production in India is 450 kilograms per hectare, while in Brazil and Australia it is several times higher. Atul Ganatra urged the government to allocate a special fund of Rs. 15,000 crore in the upcoming budget for the development of new seed technology.He clarified that simply increasing the Minimum Support Price (MSP) will not increase farmers' income. Farmers will only truly benefit when their yield per hectare increases.Atul Ganatra also suggested that the purchase of cotton at MSP should be stopped and a "Price Difference Scheme" (Bhavantar Yojana) should be implemented, allowing the government to directly transfer assistance to farmers' bank accounts. This would benefit all cotton farmers and strengthen the entire textile industry value chain.Regarding the increase in cotton imports, he said that allowing duty-free imports and high domestic cotton prices are the main reasons. Since Indian prices are significantly higher than global market prices, cotton exports from India are currently not feasible.read more :- Rupee fell 50 paise to close at 90.87 per dollar