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SISPA requests that CCI give MSME mills priority in cotton sales.COIMBATORE: The South India Spinners Association (SISPA) has called for immediate action from the Cotton Corporation of India (CCI) to prioritize the sale of cotton to Micro, Small, and Medium Enterprise (MSME) spinning mills starting July 1. SISPA has also requested the continuation of the current cotton sales policy from CCI for the next three months."The textile sector in India is at a critical juncture, grappling with significant financial strain. Numerous spinning mills have ceased operations due to liquidity crises, high operational costs, and market volatility. These challenges are compounded by a notable decline in yarn and textile exports, as well as increased pressure from imports," stated S. Jagadesh Chandran, Secretary of SISPA.Chandran also warned that selling cotton to traders leads to speculative practices, resulting in inflated prices and market instability.Despite these challenges, there are promising signs of revival within the spinning sector. Recent increases in garment export orders have enabled many mills to resume operations, leading to a growing demand for cotton to meet production needs. "Our request to the CCI is to refrain from diverting cotton stocks of 24 lakh bales, which is just one month of mill consumption. In the last three days, 2.5 lakh bales were sold to mills. If this trend continues, all stock will be sold in a month. We request CCI to stop selling to traders and instead retain these stocks for exclusive sale to mills," he added.Chandran noted that cotton prices suddenly increased from Rs 58,000 to Rs 63,000 per candy four months ago. "At that time, we requested the Ministry of Textiles and CCI not to sell cotton to traders. Based on our request, the Union Ministry of Textiles advised the CCI not to sell cotton to traders. As a result, CCI stopped selling cotton to traders, and the cotton price immediately dropped to Rs 57,000 per candy and remained stable for the last four months. The cotton prices in the open market were also stable because CCI's prices acted as a benchmark. If CCI resumes selling to traders, the prices will rise again," he said.Read More :> Piyush Goyal to Meet Exporters on Thursday

In early trade, the rupee advances 8 paise to 83.49 against the US dollar. Benchmarks hit fresh record highs; Sensex above 79,000, Nifty eyes 24,000Read More :>  Cotton Consumption Soars: Textile Industry Thrives Despite Challenges

This evening, the rupee closed 14 paise lower at 83.57 against the US dollar.At the close of trading, the BSE Sensex rose 620.73 points or 0.80% to close at 78,674.25. It touched a new high of 78,759.40 during the day. The NSE 50-share index Nifty rose 120.60 points or 0.51% to close at 23,841.90. It also made a new all-time high of 23,889.90 during the day.Read more:- Cotton Association of India

Textile Sector Shows Resilience as Cotton Consumption SurgesIndia’s textile industry continues to demonstrate resilience despite mounting challenges, driven by a sharp rise in cotton consumption. In the 2023–24 marketing season, cotton demand is projected to reach 307 lakh bales, marking the second-highest level in the past decade.According to estimates, textile mills across the country are operating at 75–80% capacity, reflecting steady industrial activity. Cotton yarn exports have also rebounded significantly, now ranging between 95 and 105 million kg per month—nearly doubling from the lows recorded in 2022.Cotton production for the current season is expected to touch 325.22 lakh bales. Meanwhile, imports and exports are projected at 12 lakh bales and 28 lakh bales, respectively, with closing stocks estimated at 47.38 lakh bales.However, the industry faces a key challenge: domestic cotton prices remain higher than global rates. This pricing disparity, coupled with rising production costs, continues to put pressure on profit margins for mill owners.Despite these constraints, the sector’s strong demand outlook and recovery in exports highlight its growth potential. Going forward, improving cost efficiency and maintaining a balance between production and pricing will be crucial for sustaining profitability.Read more :-Piyush Goyal to Meet Exporters on Thursday

On Thursday, Piyush Goyal will meet with exporters.Commerce and Industry Minister Piyush Goyal is scheduled to meet with exporters and industry representatives on Thursday to review India’s export performance and discuss strategies to boost outbound shipments. Key issues expected to be addressed include container shortages, the Red Sea crisis, and export targets, according to officials."It is a review meeting on the state of exports and export promotion," stated an official.In FY24, India’s goods exports totaled $437.1 billion, while imports reached $675.4 billion.The ministry has been developing standard operating procedures for negotiating free trade agreements with other countries, which may be discussed during the meeting, according to sources familiar with the agenda.Exporters are likely to raise the issue of extending the Production-Linked Incentive (PLI) scheme to labor-intensive sectors such as leather and footwear. Additionally, they have already approached the finance ministry regarding the high import duty on wet blue leather, which is essential for producing high-end luxury goods.Separately, gems and jewellery exporters have requested a reduction in the import duty on gold, silver, and platinum bars from the current 10-12.5% to 4% in the forthcoming Budget.Read More :> Cotton Association of India

India Cotton AssociationAs per CAI presentation at Ludhiana national crop committee meeting on dt 14 th june Bullish Factors for the Indian Cotton Market (June 2024 to October 2024)1. Hike in Indian Cotton MSP: The government is likely to increase the Minimum Support Price (MSP) for cotton by 5 to 10%.2. Shortage of Sowing Seed: India requires 450 lakh sowing packets, but only 300 lakh packets are available.3. Reduction in Cotton Sowing Acreage: More land is being allocated to other crops, reducing cotton acreage.4. Increase in Cotton Consumption: If large mills decide to stock up on old cotton for October/November, smaller mills may face a shortage.5. Tight Cotton Balance Sheet: A tighter balance sheet could influence market dynamics.6. Consistent Export Shipments: Exporters are continuing to ship 1 to 1.5 lakh bales per month.7. Delay in Import Shipments: Any delays could impact supply.8. Increase in Yarn Prices: Higher yarn prices will drive up cotton prices.9. Water Shortage: Early sowing percentages have drastically reduced due to water shortages.10. Delayed Sowing in North India: Sowing is down by 30-35% and delayed by a month, with new arrivals expected in the first week of October if conditions improve.11. Weather Risks: Adverse weather in India or other major cotton-growing countries could impact production.12. Delayed Crop Arrivals: Delays in sowing will push back new crop arrivals.13. Marketing Policies: The strategies of MNCs and the CCI need careful monitoring.14. Pent-Up Demand: Improved geopolitical situations may dry up supply chain pipelines.15. US Federal Bank Interest Rate Cut: A cut could lead to bullish trends in all commodities.16. Depression in Dollar Index: A weaker dollar could boost commodity prices.Bearish Factors for the Indian Cotton Market (June 2024 to October 2024)1. ICE Futures Fall: If December 24 ICE futures fall below 70 cents, Indian cotton prices will decline.2. Slow Demand for Cotton Yarn and Cloth: Reduced demand will negatively impact prices.3. Spinning Mills Losses: If spinning mills start losing Rs.20 per kg on yarn, they will reduce cotton consumption.4. Competition from Man-Made Fibers: These fibers are competing with cotton.5. Large Crops in the USA, Brazil, and Australia: These countries' large crops will prevent cotton prices from rising significantly.6. China's Economic Conditions: Economic instability due to simultaneous global conflicts could affect demand.7. Retailers’ Cautious Inventories: Uncertainty is leading retailers to avoid building large inventories.8. Hand-to-Mouth Operations: Most cotton spinning mills worldwide are operating on minimal inventories.Read More :> Cotton Factory Owners and Ginners Express Concern Over Decrease in Crop Area

Ginners and Cotton Factory Owners Worried About Declining Crop AreaThis year, the area under cotton cultivation has fallen below one lakh hectares, despite the state government's target to increase it to two lakh hectares. The Punjab Cotton Factories and Ginners Association is calling for the establishment of a Cotton Development Board to systematically address the issues plaguing the state's cotton industry.The drop in cotton cultivation is attributed to infestations of pink bollworm and whitefly, leading to significant challenges for cotton factories and ginners in the state. The proposed Cotton Development Board aims to streamline efforts and provide targeted solutions to bolster the sector.An interaction was organized between the Punjab Cotton Factories and Ginners Association and scientists from Punjab Agricultural University (PAU) under the chairmanship of Dr. S.S. Gosal, Vice-Chancellor of PAU. The meeting aimed to address pressing issues faced by the cotton industry in Punjab.The association's delegation included Bhagwan Bansal, President; Janak Raj Goel, Vice-President; Pappi Aggarwal, Director; and Kailash Garg, Vice-President of the Punjab Cotton Factories and Ginners Association, Bathinda. They expressed concerns over key issues impacting cotton cultivation in the region. Scientists from PAU and Regional Research Stations in Bathinda and Faridkot also attended.Primary challenges highlighted included the decline in cotton acreage due to pink bollworm infestations, inconsistent supply of high-quality seeds and pesticides, the need for timely canal water availability, and rising costs associated with cotton picking. The delegation also emphasized the urgency for early access to pink bollworm-resistant transgenic cotton hybrids and varieties.In response, Dr. Gosal assured that PAU is conducting trials to evaluate new transgenic cotton varieties resistant to pink bollworm. He emphasized the extensive research and extension activities undertaken by PAU, including close collaborations with Punjab’s farmers. Dr. Gosal also highlighted the critical need for support from the cotton industry to bolster ongoing research at PAU.Dr. A.S. Dhatt, Director of Research at PAU, stated that PAU rigorously evaluates and recommends suitable Bt cotton hybrids annually, tailored for the cotton-growing regions of the state. He underscored the importance of cultivating these recommended hybrids to enhance productivity and effectively combat pest-related problems.Read More :>  Indian Cotton Exports Surge 76% in FY24

Rupee falls 3 paise to 83.46 against US dollar in early trade This comes after rupee appreciated 3 paise against the US dollar on Tuesday, tracking a firm trend in domestic equities amid stable global crude oil prices. Read More :>  CCI Introduces QR Code Traceability for Cotton Bales in India

India's FY24 Cotton Exports Increase by 76%This year marks the second highest cotton consumption out of the last ten years, as shared by the textile commissioner at the press conference following the committee meeting.Cotton exports increased significantly from 270,130 tonnes in FY23 to 476,000 tonnes in FY24, according to provisional data released by the Committee on Cotton Production and Consumption (COCPC), which met yesterday. This sharp rise highlights the growing demand for Indian cotton in the international market.The textile commissioner noted that this year has seen the second-highest consumption of cotton in the past decade. "To enhance transparency and ensure better quality, every bale is now under QR code traceability, providing information on the village of procurement, the factory where it was processed, and the date of sale," stated Lalit Gupta, Chairman of the Cotton Corporation of India.The provisional data indicates that cotton imports have declined from 248,200 tonnes to 204,000 tonnes. Despite this reduction, cotton production has grown by a nominal 7.7 lakh bales. On the demand side, exports have nearly doubled from 15.89 lakh bales in the 2022-23 cotton season to 28 lakh bales in the 2023-24 season. While non-textile consumption remained stagnant, both MSME and non-MSME consumption saw substantial growth.The COCPC includes all textile industry stakeholders, including representatives from the central government, the textile industry, and the ginning and pressing sectors, according to the Ministry of Textiles' press release. The committee shared detailed data on imports, exports, and cotton consumption by MSMEs and non-MSMEs.This season's supply has been significantly higher than the demand in the previous season. The press release also provided data on state-wise area, production, and yield. Gujarat recorded the highest yield again this season; however, the state's yield in 2023-24 of 574.06 kg per hectare was lower than the 2022-23 yield of 601.91 kg per hectare.The north zone, which includes Punjab, Haryana, and Rajasthan, saw a substantial rise in all three parameters. Despite an increase in the area under production, Rajasthan experienced a reduction in both cotton production and yield.Madhya Pradesh saw the highest increase in yield, resulting in a higher production of 18.01 lakh bales of 170 kg each during the 2023-24 season compared to 14.33 lakh bales in the 2022-23 season.Conversely, the south zone, which includes Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu, experienced a reduction in production over the year 2023-24. Nevertheless, the south zone's production of 81.30 lakh bales exceeded that of the north zone, which stood at 47.60 lakh bales.Read more :-  CCI Introduces QR Code Traceability for Cotton Bales in India

India's CCI Offers QR Code Traceability for Cotton BalesThe Cotton Corporation of India (CCI) has taken a significant step towards enhancing transparency in the traceability of cotton produced in India by introducing QR codes for each bale. This initiative will allow buyers to access relevant information about the cotton, such as the village of procurement, the processing factory, and the date of sale, via a QR code.Lalit Kumar Gupta, Chairman and Managing Director of CCI, announced this initiative during the third meeting of the Committee on Cotton Production and Consumption (COCPC) for the Cotton Season 2023-24, held yesterday in Mumbai. Gupta emphasized the importance of this move in providing detailed traceability for every bale of cotton.The meeting, chaired by Textile Commissioner Roop Rashi, included representatives from the central and state governments, the textile industry, the cotton trade, and the ginning and pressing sectors. The participants discussed the cotton scenario, covering state-wise area, production, import, export, and consumption.In a post-meeting press conference, Rashi assured that the industry would have adequate raw material availability. She noted that cotton consumption has increased, marking the second-highest level of consumption in the past ten years. "The industry is on a good path, and we look forward to better consumption statistics," she added.According to the COCPC, the total supply of cotton for the current season 2023-24, ending September 30, is estimated at 398.38 lakh bales of 170 kg each. This includes an opening stock of 61.16 lakh bales, production of 325.22 lakh bales, and imports of 12 lakh bales. Last season, the total supply was 390.68 lakh bales, with 39.48 lakh bales as opening stock, 336.60 lakh bales of production, and 14.60 lakh bales of imports.The closing balance for the current season is projected to be 47.38 lakh bales, compared to 61.16 lakh bales last season. Total demand is expected to increase to 351 lakh bales this season, up from 329.52 lakh bales last year. Exports are also anticipated to rise from 15.89 lakh bales to 28 lakh bales this season.Read more :-  TASMA Urges CCI Not to Sell Cotton to Traders

The rupee strengthened by 3 paise to close at 83.43 against the US dollar this evening.At the close of trading, the BSE Sensex rose 712.45 points or 0.92% to close at 78,053.52. It touched a new high of 78,164.71 during the day. The NSE's 50-share index Nifty rose 183.45 points or 0.78% to close at 23,721.30. It also made a new all-time high of 23,754.15 during the day.READ MORE:-  Farmers in Karaikal Feel Relieved as Cotton Prices Rise