Recent News

In early trade, the rupee climbs 6 paise to 83.94 against the US dollar.At the interbank foreign exchange, the rupee opened at 83.97 against the U.S. dollar and rose to 83.92 before slipping marginally to 83.94, higher by 6 paise from its previous closeRead More :>  CCI to Open 33 Cotton Procurement Centres to Support Farmers Amid Price Drop

This evening, the rupee closed 1 paisa lower at 83.98 against the US dollar.At the end of the trading session, the Sensex closed 638.45 points or 0.78 per cent lower at 81,050.00 and the Nifty closed 218.80 points or 0.87 per cent lower at 24,795.80.read more:- CCI to Open 33 Cotton Procurement Centres to Support Farmers Amid Price Drop

33 Cotton Procurement Centers Will Open by CCI to Assist Farmers During Price DropVijayawada Despite growing demand for cotton in the global market, prices in the state have fallen below the Minimum Support Price (MSP), largely due to significant crop damage caused by recent rains and floods. Private traders have seized the opportunity, citing the "inferior" quality of the cotton to offer lower prices.Farmers, who enjoyed substantial profits over the past four years, are now anxious to sell their produce. Factors such as the discoloration of white kapas (raw cotton), shortened staple length, and higher moisture content have contributed to this uncertainty.In response to farmers' concerns, the central government has instructed the Cotton Corporation of India (CCI) to intervene. After years of inactivity due to high market prices, the CCI will open 33 procurement centres to purchase cotton directly from farmers.These centres, including several ginning mills designated by the CCI, will be located across the state. In areas without ginning mills, the new procurement centres will operate within local agriculture market yards.Read More :-  India's Cotton Imports Likely to Increase in 2024-25 Crop Year

In early trade, the rupee climbs 2 paise to 83.97 against the US dollar.Sensex climbs over 400 points to 82,106.27Sensex, Nifty, Share Prices LIVE: Sensex climbed 417.82 points or 0.51% to 82,106.27 as at 9.17 am, and Nifty 50 gained 103.90 points or 0.42% to trade at 25,118.50.Read More :> India's Cotton Imports Likely to Increase in 2024-25 Crop Year

India is Expected to Import More Cotton in the 2024–2025 Crop YearIndia is expected to see a rise in cotton imports during the 2024-25 crop year (October 2024-September 2025) due to lower carry-forward stocks and a potential drop in domestic output, driven by reduced acreage. Some traders have already contracted imports for the November-March period, capitalizing on recent low global prices, according to industry insiders.Atul Ganatra, President of the Cotton Association of India (CAI), said, “Imports could reach 35 lakh bales this year.” CAI data shows that India imported 16.40 lakh bales (170 kg each) by the end of August 2023 for the 2023-24 season. The expected increase in imports is linked to a 12-13 lakh hectare decrease in cotton planting. Ganatra also noted that there’s minimal carry-forward stock from 2023-24, with only 30 lakh bales of kapas (unprocessed cotton) from 2022-23 still with farmers. The USDA has forecast India’s 2024-25 cotton output at 24 million bales (480 pounds each), a 7% decline from the previous year's 25.80 million bales, mainly due to lower harvested areas.Landed Costs of Cotton ContractsAs of August, the CAI estimates closing stocks at 23.32 lakh bales by September 30, 2024, compared to 28.90 lakh bales the previous year. Ganatra also confirmed that 7-10 lakh bales have already been contracted for the November-March period. The landed cost of Brazilian cotton (28 mm) for December delivery, including 11% customs duty, is approximately ₹64,880 per bale. Australian cotton (29 mm) costs ₹69,120 per bale, while West African cotton (28.7 mm), which has a 5.5% duty, is priced at ₹63,480 for April-May 2025 delivery.As of October 4, CAI’s spot rates for 28 mm cotton were ₹56,700 per candy (356 kg), down by ₹400, while 29 mm cotton was priced at ₹58,000. On October 3, 37,500 bales were reported across the country, up from 14,800 bales the day before. Total arrivals since October 1 have reached 80,300 bales.Uncertainty Around Crop SizeGanatra cautioned that it is too early to make definitive predictions about the 2024-25 crop size, as recent rains have caused significant damage and delayed the crop by about a month in Maharashtra and Gujarat.Ramanuj Das Boob, Vice President of the All India Cotton Brokers Association, mentioned that around 10 lakh bales had been contracted when ICE futures were around 66-67 cents per pound. Currently, ICE futures are hovering at 72-73 cents per pound. Boob noted that further imports will depend on how Indian cotton prices respond as arrivals increase. Early arrivals have already softened the market.In Karnataka’s Raichur region, daily cotton arrivals range from 3,000 to 5,000 bales, with prices between ₹7,000 and ₹7,700 per quintal. In Telangana’s Adoni, prices range from ₹7,000 to ₹7,400 per quintal, with a high moisture content of around 10%, slowing down purchasing.The minimum support price (MSP) for medium staple cotton is ₹7,121 per quintal, while long staple cotton is priced at ₹7,521. Boob added that despite the reduced acreage, the crop outlook remains positive, though arrivals in Gujarat, Maharashtra, and Madhya Pradesh could be delayed. He expects improvements in arrivals after October 15.Read More :-  Maharashtra: 30,000 quintals of cotton arriving in the market every day

This evening, the rupee held steady at 83.97 against the US dollarAt the close of trading, the BSE Sensex plunged 808.65 points or 0.98 per cent to close at 81,688.45. The NSE's 50-share index, the Nifty, fell 200.25 points or 0.79 per cent to close at 25,049.85.Read More :-  Maharashtra: 30,000 quintals of cotton arriving in the market every day

Maharashtra: daily arrivals at the market of 30,000 quintals of cottonCurrently, 30,000 to 32,000 quintals of cotton are arriving in the country's markets every day, which is less than last season. Experts believe that due to the decrease in the arrival of cotton, its prices are improving.Last year, in early October, six to seven thousand bales of cotton were being imported into the country every day, but this year this figure is much less. The main reason for this is the decrease in cotton cultivation in North India this year. Currently, cotton is being imported only from North India, while cotton picking has started recently in states like Gujarat and Madhya Pradesh. Due to this, the arrival of cotton is low across the country, due to which there is no huge fall in prices. In the next seven to eight days, the arrival of cotton may increase to 50,000 to 55,000 quintals, and it is likely to increase further in November. However, farmers have very low stock of cotton at this time.The arrival of cotton is still low in Khandesh and other parts of the state, due to which the purchase of cotton has not started in the villages. Differences in cotton prices are being seen in different states and regions. The price of quality cotton in Khandesh is currently Rs 8,100 per quintal, while new cotton is being purchased at the rate of Rs 7,500 per quintal.Low stock with farmersAt present, cotton imports in the country have come to a standstill, and farmers have also not yet started storing cotton on a large scale. Due to drought conditions this year, cotton production per acre has been limited to only 80 kg to one quintal. Apart from this, heavy rains in Maharashtra, Gujarat and Madhya Pradesh have also damaged the cotton crop, which has seen a decline in production.Read More :- India braces for above – average rains, rising temperatures in October

Early trading has the rupee flattening at 83.96 against the US dollar.Rupee paused its slide and traded flat at 83.96 against the US dollar in early deals on Friday amid retreating crude oil prices and a weak American currency against major Asian rivals.Read More :> India braces for above – average rains, rising temperatures in October

October will bring above-average precipitation and temperatures in IndiaIndia is likely to receive above average rainfall in October after unusually high volumes for the past three months, a senior weather department official said on Tuesday, which could damage summer-sown crops ready for harvesting.October's rainfall is projected at more than 115% of the 50-year average, said Mrutyunjay Mohapatra, director-general of the India Meteorological Department (IMD).Farmers have begun harvesting summer-sown crops such as rice, cotton, soybeans, corn, and pulses. Rainfall during this period could disrupt the harvesting and damage the crops.Even in September above-average rainfall, arising from a delayed monsoon withdrawal, damaged some summer-sown crops in certain regions of India.India received 11.6% more rainfall than average in September, following 9% and 15.3% above-average rainfall in July and August respectively, the IMD data showed.The weather department is predicting heavy rain in the first half of October, right when most farmers are harvesting their crops. This has farmers really worried," said a Mumbai-based dealer with a global trade house.However, the rains in October may also enhance soil moisture, benefiting the planting of winter-sown crops such as wheat, rapeseed, and chickpea.The withdrawal of the monsoon started nearly a week later than usual this year, but it is likely to fully withdraw from the country around mid-October, Mohapatra said.India's annual June-September monsoon provides almost 70% of the rain it needs to water farms and replenish reservoirs and aquifers, and is the lifeblood of a nearly $3.5 trillion economy. Without irrigation, nearly half of Indian farmland depends on the rains that usually run from June to September.In October, maximum and minimum temperatures in most parts of the country are likely to be above normal, Mohapatra said.Read More :- ICF Appeals to Centre to Remove Cotton Import Duty

This evening, the rupee fell 15 paise to settle at 83.97 against the US dollarAt the close of trading, the BSE Sensex plunged 1,769.19 points or 2.10 per cent to close at 82,497.10. The NSE's 50-share index, Nifty, fell 546.80 points or 2.12 per cent to close at 25,250.10.Read More :-  Vidarbha Cotton Association Seeks Mandi Cess Waiver and GST on Cotton Seed Cake (khal)

The Vidarbha Cotton Association wants GST on cotton seed cake (khal) and a waiver of the mandi cess.The Vidarbha Cotton Association (VCA), representing farmers and ginners in the region, has called attention to key issues affecting the cotton industry. During Union Textile Minister Giriraj Singh’s recent visit to Nagpur, the association submitted a charter of demands outlining their concerns.One of the main requests is for the waiver of the mandi cess on cotton, particularly for cotton transported directly to factories without passing through mandi premises. The VCA argued that farmers receive minimal benefits from mandi services in such cases, as all necessary transactions occur at the factory. The association claims that this mandi tax, which varies across different mandis, imposes an unnecessary burden on farmers, leading to reduced cotton prices. "Waiving the mandi cess would enable farmers to secure better prices for their cotton, thereby improving their income," the letter stated.Additionally, the VCA is advocating for the imposition of a 4% GST on cotton seed cake. Currently exempt from GST, cotton seed cake is a key input in agriculture and animal husbandry, but its tax-free status complicates tax procedures for businesses. The association believes that imposing a 4% GST would streamline tax operations, promote transparency, and align with a more unified tax structure.* The VCA also pointed out that the absence of GST on cotton seed cake triggers the reverse charge mechanism (RCM) on cotton, creating cash flow challenges for traders and ginners, who face reduced working capital after paying GST under RCM. Introducing a 4% GST on cotton seed cake would eliminate the need for RCM on cotton, easing financial strain and simplifying operations for traders and ginners, according to the association.Read More :- Bumper arrival of cotton in Khargone market, farmers got price up to Rs 7250