Global cotton production likely to decline by 4.7% in 2023-24 seasonGlobal cotton production is likely to decline by 5 million bales (217.7 kg) this season (October 2023-September 2024) as production in China, the US, Australia and India is affected.However, industry experts and analysts have said that cotton prices are likely to decline in the current quarter, but are expected to rise from at least the second quarter of 2024.However, lower cotton production is unlikely to impact the textile industry as it is moving towards alternatives such as synthetic and blended fibres. “We expect global (cotton) production to reach 112.1 million bales in the 2023-24 season, lower than the estimated production of 117.6 million bales in the 2022-23 season, indicating a decline of 4.7 per cent year-on-year . Our outlook for the global production outlook is driven by an expected decline of 12.1 per cent year-on-year (y-o-y) in mainland China and the US due to a sharp decline in planted area and adverse weather conditions. Due to which production has been affected. Estimates,” said research agency BMI, a unit of Fitch Solutions.Brazil will partially offsetAdditionally, Australian production is projected to decline by 12.1 percent and Indian production will contract by 1.9 percent this season. But Brazilian output will partially offset declines elsewhere, with our forecasts indicating growth of 21.6 percent year-on-year.“The global market will face a supply shortage this year. But demand is sluggish as the US, Europe and other developed countries are going through financial problems. People there are not spending much on clothes,” said Anand Popat, a Rajkot-based cotton, yarn and cotton waste trader.“Production in India is less than 295 lakh bales (170 kg each). But the carryover stock of 25-30 lakh bales from the last season will help overcome any shortfall. Cotton consumption is also down as mills are shifting towards polyester blends,” said Ramanuj Das Boob, a sourcing agent for multinational companies based in Raichur, Karnataka.“The textile industry is clearly moving towards synthetic and blended fibers both in the country and abroad. The move is accelerating with higher prices of cotton and artificial fibers such as man-made fibers and cellulosic fibres, which are taking up more space in the market,” said Prabhu Dhamodharan, convener of the Indian Textiles Federation (ITF).technological advancement for protection“Quick change” will keep cotton prices under control. "Recent advances in technology are making synthetic fibers more functional, making them stronger competitors to cotton," he said.Despite lower production, BMI cut its average price forecast for 2023 to 84 US cents per pound from 86.5 cents, slightly above the year-to-date average of 83.8 cents. “Looking out to 2024, we maintain our average annual price forecast at 88 cents, which represents a 4.1 percent increase year-over-year (primarily due to lower supply),” the research agency said.Providing further support to global prices, it is expected that global consumption will reach 116.4 million bales in 2023-24, representing a year-on-year increase of 5 percent and, importantly, global production. Causes loss of balance.Current priceCurrently, cotton prices on the Intercontinental Exchange, New York, for delivery in March 2024 are quoted at 81.74 cents (₹53,800 per candy 356 kg) - the lowest in three months. In India, the benchmark Shankar-6 cotton price in Rajkot is ₹57,050 per candy.“Cotton (unprocessed cotton) prices in the domestic market are at ₹7,200-300 per quintal, while cottonseed prices are at ₹3,200-300 per quintal,” Das Boob said. If seed prices fall further, the Center may consider Minimum Support Price (MSP) procurement.This year the MSP of cotton has been fixed at Rs 6,620 for the medium staple variety. The arrivals are likely to increase after Diwali and will remain stable for two months thereafter. “We expect cotton prices to remain around Rs 57,000-59,000 per candy, although heavy arrivals and sluggish demand may put pressure on rates,” said a Raichur-based sourcing agent.Although the harvest is low, the quality of arrivals is excellent, Das Boob said.Caution on fiber selectionPopat said his own estimate of the cotton crop is not less than 315 lakh bales (170 kg each) and with the carryover stock of 27 lakh bales, the domestic demand can be easily met.Dhamodharan cautioned that spinning mills and textile manufacturers in the southern region are thinking twice about relying solely on cotton, due to its price fluctuations and persistent volatility. “They are now more open to mixing in different fibers, which allows them to adapt quickly to any market fluctuations,” he said.The ITF convener said it is the "right time" for the Indian government to bring the "right balance" to the ecosystem. "We expect production to decline by 12.3 percent during the 2024-25 season, which will support prices in the second half of 2024," BMI said.
Bangladesh: Import of cotton and yarn, falling demand, low gas supply, high US dollar price are responsible for this.Bangladesh's cotton and yarn imports declined in the first nine months of 2023 as falling demand in global and local markets, irregular gas supply and the US dollar crisis hit textile millers.According to Bangladesh Textile Mills Association (BTMA) data, the country's cotton imports for making yarn declined 28 per cent year-on-year to 9.87 lakh tonnes in January-September.In the same period a year ago, traders had imported 13.66 lakh tonnes of cotton.Similarly, yarn imports fell 26 per cent to 6.29 lakh tonnes in the nine months to September from 8.51 lakh tonnes a year ago.The decline in imports of cotton and yarn by textile mills comes at a time when export receipts by the readymade garment industry, which generates more than 80 per cent of the country's earnings from the external sector, have slowed down.In October, apparel shipments declined 14 percent year-on-year. Overall, apparel sector earnings rose nearly 6 percent to $38.7 billion in January-October. According to Bangladesh Garment Manufacturers and Exporters Association, it stood at $36.6 billion during the same period in 2022.A Matin Chowdhury, managing director of New Asia Group, a vertically integrated apparel manufacturing unit, said the decline in global demand has resulted in a 25 to 30 per cent decline in demand."There has also been significant disruption in production due to irregular gas supply. Local demand has also declined due to the current economic situation."Choudhary, who is also a former BTMA president, blamed the high prices of gas and cotton for the rising losses of textile mills and the high dollar price for the sharp depreciation of the taka.In January, the government raised the retail price of gas by 14.5 per cent to 178.9 per cent to ease its unsustainable subsidy burden amid a tight fiscal situation.And central bank data shows the taka has lost nearly 30 percent against the US dollar since January last year, making imports costlier.According to industry operators, local spinning and weaving mills meet about 90 percent of the textile raw material requirement for export-oriented knitwear, which is now the largest export earner in the apparel industry, and 40 percent of the demand for knitted fabrics. completes.BTMA Chief Executive Officer Mansoor Ahmed said export-oriented mills were facing difficulty in accessing the Export Development Fund (EDF) for importing cotton and yarn due to dollar shortage.Bangladesh Bank has increased the interest rate on loans given from its funds with the aim of making borrowing costlier in order to save foreign currencies. Foreign exchange reserves have fallen by about 25 percent since the start of the Russia-Ukraine war.Ahmed said the problem of domestic market oriented spinning mills is more serious as they have to depend on banks to buy raw materials from foreign markets."The rising value of the dollar has increased the cost of imports."BTMA president Mohammad Ali Khokon said many local market-oriented mills have suspended production due to shortage of raw materials."Export orders for clothing have fallen."He said that the market is not going to return to normal before March next year.“We have to stay afloat till then. So, we need support from the government and banks.”Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, said the cotton import data reflects the current situation of the sector."The decline in imports is natural."He said most knitwear factories are running at 50-60 per cent capacity as buyers are placing fewer orders."So, our consumption has declined. There is no sign of improvement in order flow either."Matin said the coming days were going to be "extremely challenging."“We are getting a disappointing picture in terms of gas supply,” he said, citing media reports."We are really concerned about the energy issue. Also, the demand is not increasing despite the overall capacity expansion."
This evening, the rupee strengthened by 6 paise and closed at Rs 83.22 against the dollar.Today, a total of 3,964 companies were traded in BSE, out of which about 2,459 shares closed with gains and 1,330 shares closed with decline. There was no difference in the share prices of 175 companies. Today, 253 stocks have closed at their 52-week high.
Spinning mills in Tamil Nadu to go on strike from November 7G. Arulmozhi, president of the open-end spinning mills’ association said that with the high costs of cotton waste along with steep power and labour costs, the mills are unable to operateOpen-end spinning mills in Tamil Nadu that supply yarn to producers of mops, mats, kitchen towels, lungis, etc. will shut operations from November 7 to 30. Similarly, master weavers in Tiruppur and Coimbatore districts have announced a strike from November 5.G. Arulmozhi, president of the open-end spinning mills’ association, told presspersons in Coimbatore on Saturday November 4, 2023, that open-end spinning mills, numbering almost 600 in Tamil Nadu, produce yarn worth ₹60 crores a day. “For the past six months, the mills are operating at just 50% of their capacity. Since we are incurring losses if we run the mills, we have decided to stop production,” he said.According to Mr. Arulmozhi, the main raw material for the mills is cotton waste that comes from regular textile mills. “The price of cotton is ₹160 a kg and the price of waste cotton should have been ₹97 a kg. But it is ₹115 a kg now. Waste cotton prices should decline by ₹20 a kg. Yarn is sold at ₹140 to ₹150 a kg, which was the price prevailing five years ago. In the past five years, costs of power, labour, and raw materials have increased multi-fold,” he said.Open-end spinning mills in Panipat, Haryana, he pointed out, are able to sell yarn at 30% lower prices compared to those in Tamil Nadu. The power costs in Tamil Nadu will force the closure of the textile industry if the government does not reduce the rates, he added.The Central government should control or stop the export of waste cotton, remove the import duty on cotton and relax quality control norms for synthetic fibres. The State government should remove peak hour charges for LT CT electricity consumers and revise the fixed charges. It should support the textile industry with a special status to revive textile activities in Tamil Nadu, Mr. Arulmozhi said.
Pakistan's cotton production increases by 82 pctPakistan registers an 82 percent increase in cotton production as compared to last year, the Pakistan Cotton Ginners Association said on Saturday.As of Oct. 31, around 6.8 million bales arrived at the ginning factories across the country as compared to 3.7 million bales last year after the crop got damaged by floods and heavy rains.The country's south Sindh province which lost almost a whole crop last year, saw a whooping 132 percent surge in cotton production this year, the association noted.However, despite the increase in production, the country still needs to import cotton bales to meet the needs of the textile industry.According to the target set by the Federal Committee on Agriculture, Pakistan needs 11.5 million bales for consumption in the textile sector.The total cotton crop this year is expected to be around 9.5 million bales, and the textile industrialists have to import an additional two million bales, the association said.
200 textile factories closed in BangladeshOwners have announced temporary closure of about 200 export-oriented garment factories in Ghazipur, Savar, Ashulia and Mirpur in Dhaka amid workers' agitation over wage hike. They fear that if the factory is kept open, the workers' protest may spread further.On Wednesday, workers protested by blocking the road in Mirpur of the capital. Some workers protested in Savar. But the situation was calm in Ghazipur.Meanwhile, bosses told the Minimum Wage Board yesterday they would be proposing a new wage. The previous proposal will be cancelled. The new proposal will increase salaries, but by how much has not been disclosed.It was decided in the board meeting yesterday chaired by Pay Board Chairman Liaqat Ali Mollah that the pay rate will be finalized in the second week of this month. The new pay structure will come into effect from December 1.Sirajul Islam, representative of the workers' side in the wage board, told Prothom Alo, 'There was a good discussion. 'The owner has become more flexible than before.'On the other hand, factory owners' representative and former BGMEA president Siddiqur Rahman told reporters, 'The wages will increase with the proposal we had given earlier. How much will it increase, I will discuss with the owners and tell in the next meeting.While the Wage Board meeting was going on at Segunbagicha in the capital, the owners were holding a meeting at the Uttara office of BGMEA, an organization of textile factory owners. It was decided in the meeting that closure of the factory due to workers' protest would be under Section 13(1) of the Labor Act. According to this section the owner can close the factory due to illegal strike. In the event of such a strike, the workers participating in the strike will not receive any salary.Source: Bangladesh News Paper
GLOBAL COTTON STOCKS POISED TO JUMP TO HIGHEST LEVEL ON RECORD IN 2023/24Global cotton stocks are poised to jump to 23.32 million tonnes in 2023/24, the highest level ever projected in the 83-year history of data collection by the International Cotton Advisory Committee (ICAC). This represents a 10% increase over the 2022/23 season, and is driven by a projected 3% increase in global production and a 0.43% decrease in global consumption.China's stocks are expected to jump to 9.16 million tonnes in 2023/24, while the rest of the world's warehouses are expected to swell to 14.5 million tonnes. With this amount in reserve, it is expected that the Cotlook A-Index will remain between 85 and 95 cents per pound for the remainder of the 2023/24 season.The global stock-to-use ratio is expected to increase to 1.00 (approximately 12 months of mill use) and the global average yield in 2023/24 is currently expected to remain stable at 771 kg per hectare. Despite average cotton prices and weakening demand, total planted area is projected to be 32.2 million hectares, a perplexing 2% increase over the previous season.source : fashiona world
This evening, the rupee closed at Rs 83.28 against the dollar with a weakness of 4 paise.Today the stock markets opened with a green mark since morning and finally closed with a rise. Last night the American stock markets closed with a rise, after that today there was a good bullish phase in the Indian markets including the Asian stock markets. In the end, a huge rise was recorded in the Indian stock market.
Brazil negotiates for tariff-free quota to export cotton to IndiaBrazil is negotiating with India a request for tariff-free quota of 100,000 metric tons for exports of Brazilian cotton to the Asian nation, according to a statement from the Brazilian cotton farmers association (Abrapa) on Wednesday. The association said in the note that a team of government officials and Brazilian cotton farmers is visiting India this week, seeking to seal a deal to have that quota implemented. Currently, any cotton exports to India pay an import tax of 11%, the association said. A deal would be a boost to an expanding cotton industry in the South American country, which is expected to surpass the U.S. this year as the world's No. 1 cotton exporter, according to the U.S. Department of Agriculture. "We believe that a larger amount of Brazilian cotton in India would be complementary to their production, particularly this year when their crop is expected to fall from 7% to 10%," said Abrapa head Celestino Zanella.
Cotton hit by pink bollworm, farmers seek compensationChandigarh : Contrary to the agriculture department’s claims of having controlled pink bollworm attacks, cotton growers in Fazilka suffered losses due to the pest infestation last month. Many even decided to uproot their crop.The farmers are now hoping to get compensation from the state government. Cotton was sown on 93,000 hectares in Fazilka. The agriculture department estimates 50% to 75% damage in 20,000 hectares, 75% to 100% loss in 100 hectares, and below 25% in rest of the category.“This is the third year in a row that our cotton crop has been hit by pests.We are waiting for the state government to announce compensation for the farmers as many had to clear the fields,” said Karan Partap, a farmer from Bandiwala village in Fazilka.Fazilka chief agriculture officer Gurmeet Singh Cheema said besides the pink bollworm attack, untimely showers had also adversely affected the cotton crop.The total area under cotton this time shrunk to 1.73 lakh hectares – down from 2.48 lakh hectares in 2022 — against the state’s target of 3 lakh hectares. A major factor was the disillusionment of farmers due to back-to-back attacks by white fly and pink bollworm over successive seasons. Many opted for paddy cultivation.Abohar MLA Sandeep Jakhar said that pink bollworm had damaged cotton crop in areas of Abohar and many of the farmers had no option but to plough back their fields.Pink bollworm first appeared in Punjab in 2020 in around 100 acres at Bathinda’s Jodhpur Romana area and severely hit other districts in the following year. In 2022, both whitefly and pink bollworm had ravaged the cotton crop in the state. In 2021 the state government had released Rs 416 crore to compensate cotton growers for their crop loss due to pink bollworm attack that had caused extensive damage in Mansa, Sangrur, Bathinda, Muktsar Sahib and Barnala districts.
CCI to set up 23 cotton procurement centers in WarangalThe government is offering a minimum support price (MSP) of Rs 7,020 per quintal for long-staple cotton and Rs 6,620 per quintal for medium-staple cotton.Cotton Corporation of India (CCI) officials are preparing to set up 23 cotton procurement centers in the district, and operations are expected to begin in the first week of November. These centers are located within cotton ginning mills and market yards, including the Enumamula Agricultural Market Yard.The government is offering a minimum support price (MSP) of Rs 7,020 per quintal for long-staple cotton and Rs 6,620 per quintal for medium-staple cotton. To ensure quality standards, farmers were asked to ensure that the moisture content of cotton should not exceed 8 percent.Cotton Corporation of India (CCI) officials are preparing to set up 23 cotton procurement centers in the district, and operations are expected to begin in the first week of November. These centers are located within cotton ginning mills and market yards, including the Enumamula Agricultural Market Yard.The government is offering a minimum support price (MSP) of Rs 7,020 per quintal for long-staple cotton and Rs 6,620 per quintal for medium-staple cotton. To ensure quality standards, farmers were asked to ensure that the moisture content of cotton should not exceed 8 percent.The marketing department has proposed to set up 23 cotton purchasing centers in the district. Of these, 18 will be located in the Warangal Enumamula agricultural market, while two will be located in the Nekkonda and Vardhannapet agricultural markets. Additionally, a center will be set up in Narsampet market. The Government has approved the operation of centers on the premises of cotton ginning mills.To ensure comfort and convenience of farmers, ginning mill owners have been advised to provide basic facilities like tents, chairs and drinking water at each cotton procurement centre. Besides this, information boards will be set up to inform farmers about support price and moisture content.An important change this season is the implementation of a new payment system for farmers selling their cotton at these procurement centres. Farmers are advised to link their bank accounts with their Aadhaar card, as purchases will be made only from those who have successfully linked their accounts. CCI will credit the funds directly into the bank accounts linked to Aadhaar card through Aadhaar Enabled Payment System (ABPS) and Public Financial Management System (PFMS).With all preparations, cotton procurement will start from the first week of November. Furthermore, the introduction of help desks at these procurement centers aims to provide assistance to farmers in the new payment system. It is important for farmers to link their bank accounts with Aadhaar and carry their Aadhaar cards while visiting the centers to ensure smooth transaction process.Prasad Rao, district officer, marketing department, Warangal, stressed the importance of adhering to quality standards at these procurement centers to get the government support price. It is said that cotton was cultivated in 1.22 lakh acres and the estimated yield is 7.34 lakh quintals. Meanwhile, the price of cotton stood at a maximum of Rs 7005 per quintal on Monday at Enummulla Agricultural Market Yard, where traders bought the cotton. Farmers hope that after the CCI center becomes operational, they will get at least MSP.Source: Telangana Today
This evening, the rupee closed at Rs 83.25 against the dollar with a weakness of 1 paise.Today the stock market closed with a rise. Today Sensex closed at 64112.65 points with a gain of about 329.85 points. Whereas Nifty closed at the level of 19140.90 points with a gain of 93.60 points.
Vietnam's fibre exports foresee positive signalsVietnam is the world's sixth-largest fibre exporter and the world's third-largest exporter of textiles and garments - just behind China and Bangladesh.Latest statistics from the General Department of Customs showed that, by the end of the third quarter of 2023, fibre exports earned 3.2 billion USD with more than 1.3 million tonnes of goods exported abroad, up 9.3% in volume but decreasing 13.8% in value compared to the same period last year.Regarding the market, in September, fibre exports to China reached 77,459 tonnes worth more than 203 million USD, down 18.8% in volume and down nearly 20% compared to August 2023.Overall, in the first nine months of the year, Vietnam exported 647,862 tonnes of fibre to the Chinese market and earned more than 1.71 billion USD, up 18.1% in volume but down 2.1% in value over the same period last year. The export price reached 2,652 USD per tonne, down 17.1% compared to the same period in 2022.The Republic of Korea (RoK) is the second-largest export market of Vietnamese fibre. In September, fibre exports to the RoK reached 10,898 tonnes with a value of more than 30 million USD, an increase of 0.6% in volume and an increase of 2.8% in value compared to August 2023. Overall, in the first nine months of the year, fibre exports to this market reached 101,880 tonnes and earned more than 284 million USD, down 5.78% in volume and 24.2% in value compared to the same period in 2022. The average export price reached 2,788 USD per tonne, down 19.65% over the same period in 2022.The US market ranked third. In the first nine months of 2023, Vietnam exported 75,483 tonnes of fibre to the US with a value of more than 108 million USD, down 13.8% in volume and 29.4% in value over the same period. The average export price reached 1,443 USD per tonne, down 17.5% over the same period in 2022 and less than half the export price to China or the RoK.In the first half of this year, business results of Vietnamese fibre industry enterprises have shown signs of clear improvement as the price of cotton raw materials has decreased significantly compared to the first half of 2022 and demand from the market has increased significantly, and demand from the Chinese market has increased again.Member of the Board of Directors, General Director of the Vietnam Textile and Garment Group (Vinatex) Cao Huu Hieu said that the market trend in the fourth quarter of 2023 had positive changes when the Fed did not raise interest rates in September but postponed it to the end of the year.The US and Chinese markets recovered well, the purchasing managers' index (PMI) of these two markets were both above 50 points (higher than forecast). EU inflation in September also decreased by 4.3% and in September Vietnam's export turnover of goods increased by 4.6% compared to the same period in 2022."Particularly for the fibre industry, the price of cotton put into production in the third and fourth quarters of 2023 is currently approaching the market price and is lower than the first six months of the year, helping the fibre industry be more effective," said Hieu.Vinatex representative also said that the overall market demand in 2024 is likely to improve compared to 2023, although the improvement is small as the total demand in 2024 is expected to still be 5-7% lower than 2022. The fibre industry may have unexpected developments due to the application of stricter policies. However, Vinatex still proposes a scenario that the fibre industry in 2024 will increase by 10% compared to 2023 due to the increased equipment mobilisation rate based on the forecast cotton price of 2.5-2.6 USD per kilo.In addition, demand for common textile and garment industry products will increase in the last quarter of the year to serve festivals, so export activities of fibre enterprises are expected to be more vibrant, according to Hieu.
Pakistan cotton weekly Review: Rates rise amid speculations about productionA good increase of up to Rs 2,000 per maund was witnessed in the price of cotton, and the spot rate also increased by Rs1000 per maund.Pakistan Cotton Ginners Association has appealed to Chief of Army Staff and Caretaker Chief Minister of Punjab to save the farmers and ginners from loss.They should give directions to Trading Corporation of Pakistan (TCP) to purchase one million bales of cotton immediately. However, despite the promise, the government is not buying cotton through the TCP.The meeting of Cotton Crop Assessment Committee is convened every year for correct assessment of cotton production. However, sources said that this year up till now this meeting has not been convened. The total production of cotton is; however, expected to be around 90 lac bales.Commercial and industrial organisations are protesting against the sudden increase in gas prices. Karachi Chamber of Commerce and Industry has termed the unsustainable hike in gas rates as the last nail in the coffin of the industry.However, in the local cotton market, the price of cotton saw a significant increase due to the increase in the purchase of quality, as well as, low quality cotton by textile spinners during the last week. The prices witnessed an increase of Rs 15,00 to Rs 2,000 per maund. The spot rate also witnessed an increase of Rs 1,000 per maund. Obviously, the rate of Phutti also increased along with the rate of cotton.Due to the statements from government side to buy cotton through the TCP at the rate of Rs 8,500 per 40 kg fixed by the government, cotton farmers have became cautious in selling their produce. However, textile spinners have started storing quality cotton due to news of its low availability. Analysts believe that quality cotton prices are unlikely to come down in near future.There is a recession in demand and prices of cotton yarn and textile products in local and international markets. Payments are also a big issue, especially in the local market due to the financial crisis. According to sources of textile spinners, cotton yarn is barely sold, but they are facing difficulties in payments.There are still speculations about cotton production in the country. Federal Committee on Agriculture has set a revised cotton target of one Crore and fifteen Lakh bales. While market sources are estimating that cotton production will be around 80 to 90 Lakh bales. Every year a meeting of all stakeholders is called for the assessment of the cotton production but it is surprising why this meeting is being delayed this year.Apart from this, the long-standing promise of buying Phutti at the price of Rs 8,500 per 40 kg fixed by the government through TCP is not being fulfilled while the farmers have already sold about 80-85% of their Phutti.In the last few days, two caretaker ministers of Punjab province complained to the government in a press conference that the federal government is delaying the purchase of cotton through the TCP. It is not clear what is behind this.The rate of cotton in Sindh is in between Rs 15,000 to Rs 18,800 per maund while the rate of Phutti is in between Rs 6,500 to Rs 7,700 per 40 kg.The rate of cotton in Punjab is in between Rs 16,000 to Rs 18,000 per maund. The rate of Phutti is in between Rs 6,700 to Rs 8,700 per 40 kg.The rate of cotton in Balochistan is in between Rs 15,000 to Rs 16,000 per maund and the rate of Phutti is in between 7,000 to Rs 9,000 per 40 kg. The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 1,000 per maund and closed it at Rs 17,000 per maund.Chairman Karachi Cotton Brokers Forum Naseem Usman has said that a bullish trend prevails in international cotton markets. The rate of Future Trading of Cotton remained 84.38 American cents.According to USDA’s weekly export and sales report, one Lakh and eighty six thousand and hundred bales were sold for the year 2023-24.China was at the top by buying 98,500 bales. Bangladesh bought 44,900 bales and came second. Vietnam bought 22,900 bales and ranked third.
Sebi extends suspension in certain commodity derivatives till December 2024The market regulator has extended the suspension in trading in certain commodity derivatives till December 2024.The Securities and Exchange Board of India (Sebi) on December 19, 2021 had issued directions to stock exchanges having commodity derivatives segment to suspend trading in derivative contracts in the commodities--paddy, wheat, chana, mustard seeds and its derivatives, soya bean and its derivatives, crude palm oil and moong—for a year.This was done on inflation concerns, around the time of a few state elections. That November wholesale inflation had spiked to 14.23 percent. The index had remained in double digits for eight consecutive months beginning in April, mainly because of surging prices of food items.Thereafter, the suspension was extended for one more year, beyond December 2022, to December 2023.A latest press release from Sebi on the extension of the suspension said, “In continuation of the said directions, the suspension in trading in the above contracts has been extended for one more year beyond December 20, 2023 i.e. till December 20, 2024.”In 2022, a team of researchers from IIM Udaipur, Jindal School of Government and Public Policy and Universidad Carlos III de Madrid had written that banning derivatives in the segment is futile.They wrote, “ there is no evidence that derivatives trading led to higher prices or that the suspension had any effect in bringing down price variability. Rather, the decline in price levels was observed across all oils, irrespective of their derivatives trading status. Price surges are typically rooted in the underlying demand and supply factors, as observed in earlier studies.”The researchers added, “The Report of the Expert Committee on Integration of Commodity Spot and Derivatives Markets (2018) also argued that outright bans erode the confidence of participants in the domestic derivatives markets. Evidence from past suspensions shows that once a contract is banned or suspended, it is difficult to bring back trading activity to even the pre-ban levels once the ban is revoked. Market participants have an easy choice to hedge their risks on international exchanges, where no such regulatory uncertainty exists.”
Registration of farmers for purchase of cotton from CCI has startedThe Cotton Corporation of India (CCI) has started the registration of farmers for the purpose of buying cotton this season. In the current season, registration of farmers has been started at 33 procurement centers in eight districts of Vidarbha. This year CCI will give a guaranteed rate of Rs 7,020 per quintal for long yarn and Rs 6,620 per quintal for medium yarn.The process of registration of farmers for the purchase of cotton this season has been started through CCI at the procurement center. CCI has 33 procurement centers in eight districts of Vidarbha namely Akola, Amravati, Buldana, Chandrapur, Nagpur, Wardha, Washim, Yavatmal.Registration facility was made available at that place. There are 7, Amravati 2, Buldana 5, Chandrapur 3, Nagpur 2, Wardha 6, Washim 2, Yavatmal 6 centers in Akola district which falls under Akola divisional office. And for the rest of the cotton producing districts, there is Aurangabad Division, and planning is being done from there.CCI's cotton procurement is likely to start only after Diwali. Because this year, due to late rains, sowing was delayed. So the universal season of cotton has not started. Cotton picking is taking place only in the planted belt in late May or June. Therefore, the price of cotton in the market is still under pressure.New cotton is currently being sought at Rs 6,500 to Rs 6,700, while old cotton is being sought at Rs 7,200. Farmers' planning also depends on how much these prices remain after large quantities of cotton are sold. In the last few seasons, the government procurement took a break due to good price in the market. If the prices in the open market remain low this year, there are signs that the trend towards government purchases will increase again.sorce : agrowon
Tamil Nadu government approves six mini textile parksThe Tamil Nadu government has so far approved setting up of six mini textile parks in the State and eight more are awaiting approval.Textile Commissioner, Tamil Nadu government, M. Vallalar, told The Hindu that there are at least 100 expression of interest received for the scheme. “We have given life to the scheme that was dormant since 2015. It will start gaining momentum now,” he said.The scheme offers 50 % or ₹2.5 crores subsidy to develop common facilities in a mini textile park. The park can come up on minimum two acres and with just three units. The stakeholders should identify land, form a special purpose vehicle, and submit a detailed project report. Across the State, about 20 DPRs have been received for the scheme. “There are eight project from in and around Madurai. In Coimbatore, the slowdown has affected the textile industry and hence the response is gradually picking up,” he said.Coimbatore District Collector Kranthi Kumar Pati held a meeting with industry representatives here on Wednesday, October 26, to explain details of the scheme. Officials, who were part of the meeting, said the scheme earlier mandated requirement of 10 acres and 10 industries. This has been reduced now. Textile spinning mills will require more space and hence, the scheme will benefit those in the post-spinning operations, such as weaving, garmenting or finishing. If the park is set up in backward blocks of the district, the units can avail of capital subsidy from the MSME Department. Some of the weaving units in Annur area have evinced interest, they added.
Stable trend on Pakistan cotton marketThe local cotton market on Thursday remained steady and the trading volume remained satisfactory.Cotton Analyst Naseem Usman told Business Recorder that the rate of cotton in Sindh is Rs 15,000 to Rs 17,500 per maund. The rate of Phutti in Sindh is in between Rs 6,500 to Rs 8,200 per 40 kg. The rate of cotton in Punjab Rs 15,500 to Rs 18,000 per maund and the rate of Phutti in Punjab is in between Rs 7,500 to Rs 8,700 per 40 kg. The rate of cotton in Balochistan is Rs 15,500 to Rs 16,000 per maund while the rate of Phutti is in between Rs 7,500 to Rs 9,000 per 40 kg.The Spot Rate remained unchanged at Rs 17,000 per maund. Polyester Fiber was available at Rs 350 per kg.
This evening, the rupee closed at Rs 83.23 against the dollar with a weakness of 5 paise.Today the stock market closed with a decline. Today the Sensex fell by about 900.91 points and closed at the level of 63148.15 points. Whereas Nifty closed at the level of 18857.30 points with a fall of 264.90 points. Due to this decline, today the market cap of the stock market has reduced by about Rs 6 lakh crore.
The bullish trend continues in Pakistan cotton marketThe spot rate committee of Karachi Cotton Association (KCA) on Wednesday increased the spot rate by Rs 400 per maund and closed it at Rs 17,000 per maund. The local cotton market remained bullish and the trading volume was satisfactory.Cotton analyst Naseem Usman told Business Recorder that cotton rates in Sindh range from Rs 15,000 to Rs 17,500 per maund. The rate of footi in Sindh is between Rs 6,500 to Rs 8,200 per 40 kg. The rate of cotton in Punjab is Rs 15,500 to 18,000 per maund and the rate of cotton in Punjab is Rs 7,500 to 8,700 per 40 kg. The rate of cotton in Balochistan is between Rs 15,500 to Rs 16,000 per maund while the rate of cotton is between Rs 7,500 to Rs 9,000 per 40 kg.The spot rate committee of Karachi Cotton Association on Wednesday increased the spot rate by Rs 400 per maund and closed it at Rs 17,000 per maund. Polyester fiber was available at Rs 350 per kg.Source: Business Recorder
| title | Created At | Action |
|---|---|---|
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| Bangladesh: Import of cotton and yarn, falling demand, low gas supply, high US dollar price are responsible for this. | 07-11-2023 00:31:29 | view |
| This evening, the rupee strengthened by 6 paise and closed at Rs 83.22 against the dollar. | 06-11-2023 23:37:24 | view |
| Spinning mills in Tamil Nadu to go on strike from November 7 | 06-11-2023 18:26:01 | view |
| Pakistan's cotton production increases by 82 pct | 06-11-2023 18:03:10 | view |
| 200 textile factories closed in Bangladesh | 04-11-2023 00:53:57 | view |
| GLOBAL COTTON STOCKS POISED TO JUMP TO HIGHEST LEVEL ON RECORD IN 2023/24 | 03-11-2023 23:55:00 | view |
| This evening, the rupee closed at Rs 83.28 against the dollar with a weakness of 4 paise. | 03-11-2023 23:27:38 | view |
| Brazil negotiates for tariff-free quota to export cotton to India | 03-11-2023 20:50:48 | view |
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| This evening, the rupee closed at Rs 83.25 against the dollar with a weakness of 1 paise. | 30-10-2023 23:46:21 | view |
| Vietnam's fibre exports foresee positive signals | 30-10-2023 20:13:57 | view |
| Pakistan cotton weekly Review: Rates rise amid speculations about production | 30-10-2023 18:02:19 | view |
| Sebi extends suspension in certain commodity derivatives till December 2024 | 28-10-2023 18:44:45 | view |
| Registration of farmers for purchase of cotton from CCI has started | 28-10-2023 17:34:24 | view |
| Tamil Nadu government approves six mini textile parks | 27-10-2023 20:48:49 | view |
| Stable trend on Pakistan cotton market | 27-10-2023 17:53:15 | view |
| This evening, the rupee closed at Rs 83.23 against the dollar with a weakness of 5 paise. | 26-10-2023 23:19:46 | view |
| The bullish trend continues in Pakistan cotton market | 26-10-2023 18:26:56 | view |
