On the external front, the United States Trade Representative (USTR) has proposed a **.* per cent tariff on Indian textile imports tied to forced-labour concerns. This is a proposed penalty on countries the US says are not doing enough to stop goods made with forced labour from entering its market. India formally asked Washington to reconsider on July *, ****. The proposal has not yet taken effect.
On the domestic front, Cotton Corporation of India (CCI) the government**;s procurement agency that purchases cotton from farmers at the Minimum Support Price (MSP) must liquidate approximately * million bales of cotton by July **. To accelerate sales, CCI has reduced its offer prices to spinning mills through successive revisions over recent weeks.
Both issues are expected to reach critical milestones within the next two to three weeks. That convergence gives mills and exporters a limited but valuable opportunity to strengthen their competitive position before market conditions change.
Cost impact
