India Extends Cotton Import Duty Waiver Amid Global Market Shifts

India's decision to extend its cotton import duty waiver through December 31 has sent ripples through global commodity markets. Cotton prices reversed earlier losses, edging up 0.2% as traders anticipate increased shipments from Australia, Brazil, the United States, and African producers. The MOVE threatens to depress domestic prices while easing supply constraints for Indian textile manufacturers.

Simultaneously, new U.S. tariffs on Indian goods—including a punitive 25% levy tied to New Delhi's Russian oil purchases—have taken effect, creating headwinds for exporters. The combined duties, reaching 50% on affected items like garments and jewelry, mark one of Washington's most aggressive trade measures and risk slowing India's economic momentum.

The policy clash underscores growing tensions between the strategic partners, with Gujarat's small exporters particularly vulnerable. Market observers note the dual developments could reshape trade flows in both agricultural commodities and manufactured goods through year-end.