Rupee falls 3 paise against US dollar
Mumbai (PTI): The rupee fell 3 paise to close at 88.77 against the US dollar on Tuesday, weighed down by a strong American currency against major crosses overseas.
The domestic currency traded in a tight range as investors preferred to remain on the sidelines amid uncertainties over global trade, forex traders said.
At the interbank foreign exchange market, the rupee opened with a marginal gain at 88.72 against the US dollar and touched the intra-day low of 88.79 before ending the session at 88.77, registering a loss of 3 paise from its previous closing level.
On Monday, the rupee gained 5 paise to settle at 88.74 against the US dollar.
Investors moved cautiously after the US Senate once again rejected both Democratic and Republican proposals to fund the government, prolonging the government shutdown into its sixth day, traders said.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee witnessed limited volatility as FII selling eased and crude prices remained soft.
However, the domestic unit continues to hover near its all-time low levels, keeping concerns of further weakness alive, possibly toward 90 levels if sentiment worsens, he added.
"This week's focus remains on Fed Chair Powell's speech, the release of Fed meeting minutes, and key US data on unemployment and non-farm payrolls, which could induce sharp volatility. The rupee range is expected between 88.45 and 88.95," Trivedi said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, increased 0.34 per cent to 98.13.
Brent crude, the global oil benchmark, was trading 0.37 per cent lower at USD 65.25 per barrel in futures trading.
Commerce and Industry Minister Piyush Goyal on Tuesday said India and the US are in continuous dialogue on the proposed bilateral trade agreement, and all possibilities are there to meet the November deadline for concluding the talks.
Goyal's comment came a day after External Affairs Minister S Jaishankar said that any trade deal between India and the US must respect New Delhi's "red lines", and efforts are underway to reach an understanding.
According to Jaishankar, there were "issues" between India and the US, and many of them were linked to the inability to firm up the proposed trade deal, even as he noted that "there are things you can negotiate and there are things you can't".
In the domestic equity markets, Sensex climbed 136.63 points or 0.17 per cent to settle at 81,926.75, while Nifty went up 30.65 points or 0.12 per cent to 25,108.30.
Foreign institutional investors bought equities worth Rs 1,440.66 crore on a net basis on Tuesday, according to exchange data.
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Evading core issue: Siddaramaiah slams Centre on sugarcane FRP in letter to Pralhad Joshi
Bengaluru: Karnataka Chief Minister Siddaramaiah launched a sharp attack on the Central Government Saturday, accusing it of "evading the core issue" of the widening gap between cultivation costs and the price realisation for sugarcane, which he stated has pushed lakhs of farmers into distress.
In a detailed, three-page letter to Union Minister Pralhad Joshi, Siddaramaiah dismantled the Centre's claims on the Fair and Remunerative Price (FRP), ethanol blending, and financial support to the state.
The Chief Minister's letter was a direct rebuttal to one he had received from Joshi regarding the "plight of sugarcane farmers in Karnataka."
"Farcical" FRP claims
Siddaramaiah challenged the Centre's announced FRP of ₹355 per quintal at 10.25% recovery, calling the government's claim of a 105.2% margin over production cost "unfortunately, a farce."
"Every farmer in Karnataka knows that since 2014, the cost of fertilizers, labour, transportation, and other inputs have more than doubled," Siddaramaiah wrote. He contrasted this with the FRP, which he stated has increased at a compound annual growth rate (CAGR) of just 4.47% since 2014, rising from ₹210 to ₹355.
He also pointed out that the FRP was not increased for two consecutive years during the NDA regime, causing an average loss of ₹20 per quintal to farmers. This, he argued, was in stark contrast to the UPA years, when the CAGR for FRP was 12.96%.
The Chief Minister accused the Central Government of "artificially pegging higher" the recovery rate to manipulate the numbers. "While it was 9.5% during UPA, the NDA government raised it to 10.25%, reducing the effective FRP," the letter stated. "On a comparable 9.5% recovery rate, the present FRP is only ₹329 per quintal, making the real growth a meagre 3.8% CAGR. This manipulation of numbers has betrayed the farmers."
Siddaramaiah also refuted the Centre's portrayal of ethanol blending as a "boon" to the sugar sector. He argued that the financial benefits are not being passed on to the farmers.
UPA Era: With ethanol blending below 5% and 9.5% recovery, the FRP recorded a robust CAGR of 12.96%.
NDA Era: With ethanol blending at approximately 20% and 10.25% recovery, the CAGR has "dropped to just 3.8%."
He noted that ethanol supply from Karnataka distilleries has only "marginally" increased from 38 crore litres in 2022-23 to 47 crore litres in 2024-25, despite an installed capacity of 270 crore litres.
The larger question remains unanswered," he wrote, "why has the benefit of ethanol blending not been passed on to the farmers?
The Chief Minister made several demands and accusations:
New MSP mechanism: He urged the Centre to devise a new MSP for sugar that categorises "domestic and commercial consumption separately," so that higher profits from commercial sales are reflected in the price paid to farmers.
Data transparency: Challenging claims that the Centre has provided "substantial financial assistance" to sugar mills, Siddaramaiah demanded the "mill-wise data" of such support in Karnataka to verify if the benefits "have truly reached the intended stakeholders."
Absence of Union Ministers: He expressed disappointment that "none of the Union Ministers from Karnataka attended the meeting held on 7th November 2025," where stakeholders were invited to discuss the issue.
Tax devolution: He accused the Union Government of a "step-motherly attitude," claiming Karnataka has been denied "over ₹2 lakh crore" in its rightful share of tax devolution and grants over the past five years.
Siddaramaiah concluded with a direct appeal to Joshi as a "senior Union Minister from Karnataka" to "stand with the farmers."
"The real measure of governance is not in statistical claims but in the smiles on the faces of farmers," he wrote.
