The monsoon season is dead. Stalled Movement Has Been Delaying Kharif Crop Sowing Since June 12 The monsoon, which arrived early in Kerala and the North-East, has been almost at a standstill since June 12, covering roughly 40% of India’s geographical area in the first 14 days. This prolonged pause has exacerbated the heat wave and delayed kharif crop sowing in north and north-west India.Despite this, the India Meteorological Department (IMD) remains optimistic about good rainfall from July to September due to the upcoming La Nina formation, though it has downgraded June rainfall expectations to 'below normal.' La Nina conditions, associated with cooling ocean temperatures, typically bring good monsoon rainfall to India.Climate scientist Madhavan Rajeevan notes that monsoon pauses are common but acknowledges the current one is longer than usual, potentially influenced by intra-seasonal activity and the Madden Julian Oscillation (MJO). He expects the monsoon to revive in the last week of June, projecting an overall normal monsoon.The delay in monsoon impacts farming operations, especially for water-intensive paddy, reducing the gap between kharif harvest and rabi sowing. This may increase stubble burning in north-west India, contributing to air pollution in Delhi-NCR during winter. The agriculture ministry recommends the direct seeded rice (DSR) method to save time, though traditional methods remain prevalent.READ MORE :> Sharper MSP hikes for pulses, oil seeds; paddy support price up just 5.4%
In Kharif 2024, India's Cotton Acreage Reduces as Farmers Switch to Pulses and MaizeFarmers' planting decisions are being influenced by bearish global futures and increasing pest attacks. As a result, cotton acreages across the country for the Kharif 2024 cropping season are expected to decline. Farmers in key producing states like Gujarat and Maharashtra are opting for more lucrative crops such as pulses and maize amidst weakening global cotton prices.The Cotton Association of India (CAI), the apex trade body for the sector, projects a decrease in cotton acreage for the Kharif 2024 season compared to the previous year's 124.69 lakh hectares.In North India, where Kharif planting is nearly complete, cotton acreages have dropped by nearly half. Farmers in states like Punjab and Haryana faced significant crop losses due to rising pest attacks, mainly the pink bollworm, and increasing production costs.According to information from North India members in the recent CAI meeting, cotton sowing in the current Kharif season is reduced by 40 to 60 percent in states such as Rajasthan, Haryana, and Punjab,” said Atul Ganatra, President of CAI.In Gujarat, the largest cotton-producing state, acreages are expected to decline by 12-15 percent this year. Ganatra noted that with parts of Gujarat receiving rains, farmers have already shifted to groundnuts and other crops.In Maharashtra, which has the largest cotton area in the country, the situation mirrors that of Gujarat. “The Maharashtra state association and other trade members expect a 10-15 percent reduction in area,” Ganatra said. Farmers in Maharashtra are shifting from cotton to tur, maize, and soybeans.Feedback from seed distributors indicates slow sales of cotton seeds in the state. “Due to water shortages, not much early cotton sowing is done in Central and South India,” Ganatra added. In Madhya Pradesh, acreages are seen lower by a tenth, while in the South, farmers are waiting for the minimum support price (MSP) to be declared.The bearish trend in ICE Futures is also influencing cotton sowing in India. The ICE cotton futures for December 2024 are trending lower at 70 cents per pound, equivalent to ₹47,000 per candy in Indian rupees. Currently, cotton prices in India are hovering in the ₹55,000-57,000 range for 29 mm.“Lower December ICE futures are not good for the upcoming cotton sowing. The lower futures are affecting cotton sowing as Indian farmers are keenly watching the ICE futures daily before making sowing decisions,” Ganatra added.Cotton was planted on 124.69 lakh hectares during the 2023-24 season, with Maharashtra topping the acreage at 42.34 lakh hectares, followed by Gujarat at 26.83 lakh hectares and Telangana at 18.18 lakh hectares.Read more :- Brazilian Cotton Exports Set to Break Records in June
Higher MSPs for oil seeds and pulses; only a 5.4% increase in the price of paddy supportThe Cabinet on Wednesday approved increases in the minimum support prices (MSP) for 14 crops for the 2024-25 kharif season, with hikes ranging from 1.4% to 12.7%. The support price for paddy, the main summer crop, rose modestly by 5.35% to Rs 2,300/quintal, compared to a 7% increase the previous year.With significant rice stock surpluses, the government aims to encourage farmers, particularly in Punjab and Haryana, to shift towards more profitable pulses and oilseeds. Current central pool rice stocks total 31.98 million tonnes (MT), with the Food Corporation of India (FCI) holding 50.08 MT, well above the buffer requirement.For the 2024-25 season, MSP for moong increased by 1.4% to Rs 8,682/quintal, while tur/arhar rose by 7.9% to Rs 7,550/quintal. Groundnut and soybean saw MSP hikes of 6.4% and 6.3%, reaching Rs 6,783/quintal and Rs 4,892/quintal, respectively.These adjustments are part of ongoing efforts to realign MSPs towards oilseeds, pulses, and coarse cereals to balance supply and demand. Since 2018-19, MSP policy has aimed for at least 50% profits over production costs, with that year seeing hikes from 4.1% to 28.1%.Higher MSPs for pulses and oilseeds are expected to drive agricultural gross value added (GVA) in the latter half of the year, with procurement starting in October. Agri GVA grew by only 1.4% in FY24 due to below-normal monsoon rainfall.According to Information and Broadcasting Minister Ashwini Vaishnaw, the new MSP decisions will provide farmers with Rs 2 trillion, an increase of Rs 35,000 crore from the previous season. However, MSP purchases remain stronger for paddy and wheat than for oilseeds and pulses. India imports 56% of its edible oil needs and 15% of its pulses consumption.For the 2024-25 season, the MSP for medium staple cotton increased by 7.6% to Rs 7,121/quintal, while MSPs for other cereals like maize, bajra, ragi, and jowar rose by 5-11.5%.Expected farmer margins over production costs for 2024-25 are highest for bajra (77%), followed by tur (59%), maize (54%), and urad (52%), with other crops estimated at a 50% margin.READ MORE :> US Cotton Industry Seeks Removal of 11% Import Duty on Short Staple Cotton
In early trade, the rupee drops 1 paisa to 83.45 against the US dollar.Sensex climbs 250.72 points to 77,588.31 in early trade; Nifty up 71.7 points to 23,587.70READ MORE :> Brazilian Cotton Exports Set to Break Records in June
Brazil's June Cotton Exports Are Expected to Break All RecordsBrazilian cotton exports in June are poised to reach record highs, driven by strong international demand and favorable export prices, according to the Centre for Advanced Studies on Applied Economics (CEPEA). Data from the Secretariat of Foreign Trade at the Ministry of Economy (SECEX/ME) indicates that Brazil has already exported 50.34 thousand tons of cotton in the first five working days of June. This figure is nearing the total exports for the entire month of June 2023, which was 60.3 thousand tons.The daily export average has surged to 10.07 thousand tons, a significant increase from the 2.87 thousand tons per day recorded in June last year, marking a rise of 250.5 percent. If this export rate continues, June's total cotton exports are projected to reach 200 thousand tons, setting a new record for the month, CEPEA reported in its latest fortnightly update on the Brazilian cotton market.From August 2023 to mid-June 2024, Brazil has shipped 2.4 million tons of cotton, reflecting a 65.8 percent increase compared to the same period in the previous season, which saw 1.45 million tons exported.Read more :-US Cotton Industry Seeks Removal of 11% Import Duty on Short Staple Cotton
This evening, the rupee ended the day 5 paise weaker versus the US dollar, at 83.46.At the close of trading, the BSE Sensex rose 36.45 points or 0.047% to close at 77,337.59. During the day's trading, the Sensex had touched a new all-time high of 77,851.63. On the other hand, the NSE's 50-share index Nifty fell 36.30 points or 0.15% to close at 23,521.60. During the day's trading, it had hit a new high of 23,664.005.Read more :- Dry Spell Threatens Cotton Farmers' Hopes
US Cotton Industry Wants 11% Import Tax on Short Staple Cotton RemovedCotton Council International (CCI) urged the Indian government on Tuesday to remove the 11% import duty on short staple cotton to lower prices and benefit the Indian textile industry.In February, India had removed the 10% import duty on cotton with a staple length above 32 millimeters (mm), known as Extra Long Staple (ELS) cotton. However, the 11% import duty on cotton with a staple length below 32 mm remains.The import duty, imposed on February 1, 2021, includes a 5% basic customs duty, a 5% tax, and a 1% social welfare charge."We are here to discuss challenges with our partners and seek solutions. The 11% import duty on US cotton imports, particularly shorter staple cotton, has negatively impacted the domestic textile industry," said Marc A Lewkowitz, President and CEO of SUPIMA, at a roundtable organized by CCI.Lewkowitz emphasized that India, despite its large cotton textile industry, cannot produce enough cotton to meet its domestic needs. ELS cotton production in India accounts for less than 1% of total cotton production, necessitating imports to support textile mills manufacturing yarns, apparel, and home textiles.The United States, Egypt, and Israel are major suppliers of ELS cotton to India.READ MORE :> Dry Spell Threatens Cotton Farmers' Hopes
A dry spell jeopardizes the hopes of cotton farmersDespite the IMD's forecast for good rainfall from July to September, a prolonged dry spell has impacted rain-fed crops, especially cotton, in the State.In Hyderabad, many districts are experiencing severe dry conditions, dampening the hopes of cotton farmers. Poor germination due to insufficient soil moisture is forcing many farmers to consider a second round of sowing. However, the availability and cost of seeds for a second sowing within a month present significant challenges, potentially driving farmers towards alternative crops.Farmers, relying on the forecast of good rains, had extensively planted cotton, covering over 4 million acres by mid-June. However, several districts reported deficient rainfall, including Mancherial, Peddapalli, Adilabad, Asifabad, Kothagudem, Khammam, Siddipet, and Kamareddy. Specific deficiencies include:Adilabad, 74 mm in Mancherial, 44 mm in Nirmal, 38 mm in Nizamabad, 58 mm in Peddapalli, 44 mm in Bhupalpalli, 34 mm in Jagitial, 20 mm in Bhadradri Kothgudem, 38 mm in Karimnagar and 31 in Rajanna Sircilla, 28 mm in Kamareddy and 39 mm in Mulugu.The dry spell, lasting over a couple of weeks, has severely affected cotton and other rain-fed crops. Small landholders have resorted to using sprinklers to maintain soil moisture for better germination. However, those cultivating larger areas (5 to 10 acres) are struggling to save their crops.Reports from districts like Nirmal and Kothagudem indicate that if the dry spell continues for another week to ten days, farmers could face substantial losses at the start of the Kharif season. Additionally, the availability of seeds for a second sowing is a significant concern.The Department of Agriculture has promised to facilitate seed supply according to demand, but farmers report shortages of the most sought-after seed varieties. Agriculture officials, however, claim there is no seed supply shortage and believe it is premature to determine the fate of the seeds within just a couple of weeks.READ MORE :> Late Demand from Bangladesh Boosts Indian Cotton Exports by 67%
Bangladesh's Late Demand Increases Indian Cotton Exports by 67% India’s cotton exports for the 2023-24 season, ending in September, are projected to surge by over two-thirds due to rising demand from mills in Bangladesh. The Cotton Association of India (CAI) forecasts shipments to reach approximately 2.6 million bales (170 kg each), marking a 67.7% increase from the previous season's 1.55 million bales.“Bangladesh mills, which are operating on a tight supply, are purchasing Indian cotton as their shipments from the US and Brazil have been delayed. Currently, around 100,000 to 150,000 bales are being exported to Bangladesh each month,” said Atul Ganatra, President of CAI. Deliveries to Bangladesh by road take about five days.In a recent meeting, CAI revised its pressing estimates for 2023-24 to 31.77 million bales, up from 30.9 million bales in February. This increase is primarily attributed to Central Indian farmers offloading old stocks. However, the current season’s pressing estimates are still lower than the previous year’s 31.89 million bales. Ganatra noted that the rise in pressing figures is due to carry-forward stocks entering the market. By the end of May, about 29.65 million bales had been pressed.*Imports on the Rise*Imports of cotton are estimated at 1.64 million bales, up from 1.2 million bales last season. By the end of May, 550,000 bales had already arrived in the country. Including opening stocks, imports, and pressing estimates, the total supply is projected to be 36.3 million bales, higher than the previous season's 35.54 million bales.CAI estimates domestic demand at 31.7 million bales, up from 31.1 million bales. Demand from the non-MSME segment is expected to be 20.1 million bales (previously 28 million bales), while consumption from MSMEs is projected to rise significantly to 10 million bales from 1.5 million bales. Non-textile consumption remains steady at 1.6 million bales. Ganatra explained that the changes in consumption figures are due to the regrouping of data into new categories by the Committee on Cotton Production and Consumption (COCPC).The average capacity utilization of spinning mills is estimated at around 90%, with mills in Central and North India operating at full capacity, and those in South India at 80%. CAI predicts closing stocks for the current season will be lower at 2.05 million bales, compared to last year’s 2.89 million bales.READ MORE :> India's monsoon has brought 20% less rainfall
In early trade, the rupee climbs 6 paise to 83.37 against the US dollar.The local unit, however, faced resistance due to a stronger American currency and higher crude oil prices overseas, forex traders said.Read More :> Aus, Brazil, US Cotton Shippers Sign MoU
This evening, the rupee appreciated by 15 paise to settle at Rs 83.41 versus the US dollar.The Sensex rose 374 points to touch 77,366 during the trade. However, a slight decline was seen after this. The Sensex rose 308 points to close at 77,301.At the same time Nifty also made an all time high of 23,579 today. However, it also came down a bit later and closed at 23,557 with a gain of 92 points.Read more :- India's monsoon has brought 20% less rainfall
In early trade, the rupee climbs 3 paise to 83.52 against the US dollar.Sensex jumps 300 pts to hit fresh record high, Nifty zooms past 23,500 for 1st timeRead More :> India's monsoon has brought 20% less rainfall
Rainfall from India's monsoon has decreased by 20%.India's monsoon has brought 20% less rainfall than usual this season, posing concerns for the crucial agricultural sector, according to the India Meteorological Department (IMD). Typically starting in the south around June 1 and spreading nationwide by July 8, the monsoon is essential for planting crops like rice, cotton, soybeans, and sugarcane.Data shows a significant shortfall across most regions, with central India, which grows soybeans, cotton, and sugarcane, experiencing a 29% deficit. The paddy-growing southern region, however, received 17% more rain due to an early monsoon onset. The northeast saw 20% less rainfall, while the northwest had a 68% shortfall, exacerbated by heat waves.Monsoon rains are vital for India's nearly $3.5-trillion economy, providing 70% of the water needed for agriculture and replenishing reservoirs. About half of India's farmland relies on these annual rains, which typically continue until September.An IMD official noted that the monsoon's progress has stalled but could recover quickly. Northern states are expected to endure heat waves for a few more days, with temperatures 4-9°C above normal, but a cooldown is anticipated by the weekend.Read more :- Aus, Brazil, US Cotton Shippers Sign MoU
Cotton Shippers Connect in Aus, Brazil, and the USThe Australian Cotton Shippers Association (ACSA), American Cotton Shippers Association, and Brazilian Cotton Shippers Association (ANEA) have signed a memorandum of understanding (MoU) to advance the global cotton industry. This agreement aims to ensure the long-term economic and social vitality of their respective industries through a collaborative approach to global industry issues.The MoU was formalized at the American Cotton Shippers Association Annual Convention in Scottsdale, Arizona, on June 14. ACSA chairman Tony Geitz emphasized the importance of working together to lead discussions on policy-making and global supply chains. American Cotton Shippers Association CEO Buddy Allen highlighted the collective goals despite being competitors, aiming to keep cotton the universal fiber of choice. ANEA president Miguel Faus stressed the partnership's goal to strengthen mutual understanding and enhance consumer and policymaker awareness about cotton's positive contributions.Australia, the US, and Brazil, the top three cotton exporters, are optimistic about the MoU's impact on global cotton uptake. The USDA’s June report increased Australia's 2024-25 export projection to 5.4 million bales and maintained the US and Brazil forecasts at 13 million and 12.5 million bales, respectively. The report also adjusted projections for other regions and increased the forecast for global ending stocks.Read nore :- TAMILNADU Nagapattinam Cotton Growers in Distress as Prices Plummet After Off-Season Rain
Cotton Growers in Tamil Nadu's Nagapattinam Are in Crisis as Prices Drop Following Off-Season RainsLocal traders are offering only ₹40 to ₹46 per kg, compared to ₹80 to ₹110 per kg last year, according to farmers; unions are urging government intervention to assist them.Cotton farmers in Nagapattinam are facing severe distress due to a significant drop in prices, exacerbated by recent untimely rains. Despite the minimum support price (MSP) being set at ₹66 per kg this year, local traders are buying cotton at only ₹40 to ₹46 per kg.P. Balasubramanian, president of Alathur Panchayat in Tirumarugal block, where cotton is cultivated on 220 hectares, highlighted that low procurement prices have driven farmers into debt. "At least ₹50,000 is needed to cultivate cotton on one acre. Due to recent untimely rain, only 2 to 2.5 quintals of cotton are harvested per acre, compared to the usual 4 to 4.5 quintals. With private traders offering just ₹40 to ₹46 per kg, we cannot cover our costs, forcing us to take loans even for basic family needs," he said.R. Kavya, a farmer from Tirumarugal, expressed similar concerns. "The current price is only ₹42 per kg. I cultivated cotton on around 2 acres this year, hoping to use the profit for my children's education and to remodel our house. But the price drop has left me in a hopeless situation. I even need financial assistance to shift to paddy in the coming season," she said.S.R. Tamil Selvan from the Tamizhaga Vivasayigal Pathukappu Sangam called for government intervention. "Cotton farmers are severely affected, and the government has not stepped in. The Cotton Corporation of India (CCI) should procure directly from farmers to save them from middlemen who do not pay the MSP," he urged.An official from the Agriculture Department confirmed the statewide trend of price drops, noting that last year, good quality cotton sold at ₹110 per kg and average quality at ₹80 per kg. "Cotton is cultivated on 2,700 hectares in Nagapattinam, and we've reported to the State government that crops on 1,300 hectares were lost due to untimely rain. Among those unaffected, the price drop has hurt farmers badly. The CCI can step in, but it has many norms, such as managing transportation costs for ginning, which must be borne by farmers. Farmers need to be united to persuade the CCI to help them, but most prefer local traders who purchase directly from the field despite the huge price differences," said a senior Agriculture Department official.Sources in the Agriculture Marketing Department mentioned plans to open a regulated market for cotton in the district soon. "It is challenging to attract traders who will procure at higher prices," said an official.Read More :> India's Goods Exports Surge by 9.1% in May 2024 to $38.13 Billion
India’s Merchandise Exports Rise 9.1% in May 2024 to $38.13 Billion; Trade Deficit WidensIndia’s merchandise exports increased by 9.1% year-on-year in May 2024, reaching $38.13 billion, supported by strong performance in engineering goods, petroleum products, electronics, pharmaceuticals, and textiles. The growth reflects a revival in global demand, according to government data released on Friday.Imports Increase, Trade Deficit WidensImports in May 2024 rose by 7.7% to $61.91 billion, driven by higher shipments of petroleum, transport equipment, silver, and vegetable oil. As a result, the trade deficit widened to $23.78 billion, the highest level in seven months.Positive Economic OutlookCommerce Secretary Sunil Barthwal noted that easing inflation in advanced economies has improved consumer purchasing power, leading to stronger demand. He expressed confidence that the export growth trend is likely to continue.Exporters also remain optimistic, citing rising global order bookings and expectations of stronger trade growth in 2024, as projected by the WTO, IMF, and OECD. In 2023, global trade had slowed due to high inflation, rising interest rates, and weak demand conditions.FIEO President Ashwani Kumar said that improved demand from the European Union, the UK, West Asia, and the United States is expected to support export growth. He added that a more than 10% rise in order bookings signals recovery in labor-intensive export sectors.Strong Start to FY25India’s exports had declined by 3.1% to $437 billion in 2023–24. However, FY25 began on a positive note, with exports rising in both April and May 2024. Total exports for April–May increased by 5.1% to $73.12 billion. During the same period, imports rose by 8.89% to $116.01 billion, resulting in a trade deficit of $42.89 billion compared to $36.97 billion in the previous year.Sectoral DeclinesSome sectors recorded declines in May 2024, including gems and jewellery, marine products, iron ore, cashew, and oil meals. Notably, spice exports fell by 20% to $361.17 million, following recalls of certain Indian spice products in markets such as Hong Kong and Singapore.Key Export DestinationsThe top export destinations showing strong year-on-year growth in May 2024 were Malaysia (86.95%), the Netherlands (43.92%), the United Kingdom (33.54%), the United Arab Emirates (19.43%), and the United States (13.06%).Major Import SourcesThe leading sources of import growth included Angola (1274.95%), Iraq (58.68%), the UAE (49.93%), Indonesia (23.36%), and Russia (18.02%).Read more :- Did farmers turn their back on cotton this year?
| title | Created At | Action |
|---|---|---|
| Monsoon at a Standstill Since June 12, Stalled Movement Delays Kharif Crop Sowing | 20-06-2024 18:45:35 | view |
| India’s Cotton Acreage Shrinks in Kharif 2024 as Farmers Shift to Pulses, Maize | 20-06-2024 18:22:32 | view |
| Sharper MSP hikes for pulses, oil seeds; paddy support price up just 5.4% | 20-06-2024 18:20:51 | view |
| Rupee falls 1 paisa to 83.45 against US dollar in early trade | 20-06-2024 17:30:44 | view |
| Brazilian Cotton Exports Set to Break Records in June | 19-06-2024 23:54:11 | view |
| The rupee closed 5 paise lower at 83.46 against the US dollar this evening. | 19-06-2024 23:18:38 | view |
| US Cotton Industry Seeks Removal of 11% Import Duty on Short Staple Cotton | 19-06-2024 19:20:24 | view |
| Dry Spell Threatens Cotton Farmers' Hopes | 19-06-2024 18:58:01 | view |
| Late Demand from Bangladesh Boosts Indian Cotton Exports by 67% | 19-06-2024 18:34:33 | view |
| Rupee rises 6 paise to 83.37 against US dollar in early trade. | 19-06-2024 17:25:28 | view |
| The rupee strengthened by 15 paise to close at Rs 83.41 against the dollar this evening. | 18-06-2024 23:46:56 | view |
| Rupee rises 3 paise to 83.52 against US dollar in early trade | 18-06-2024 17:25:32 | view |
| India's monsoon has brought 20% less rainfall | 18-06-2024 00:28:47 | view |
| Aus, Brazil, US Cotton Shippers Sign MoU | 17-06-2024 19:07:39 | view |
| TAMILNADU Nagapattinam Cotton Growers in Distress as Prices Plummet After Off-Season Rain | 17-06-2024 18:37:24 | view |
| India Exports Grow 9.1% in May 2024, Trade Deficit Hits 7-Month High | 15-06-2024 21:15:10 | view |
