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The advancing monsoon in South India marks the start of cotton sowing.As chilli prices weaken, the natural fibre crop may gain in Telangana, says trade.A firm trend in cottonseed prices is supporting cotton prices as sowing for the kharif 2024 season begins in the southern states of Karnataka, Telangana, and Andhra Pradesh, which have started receiving monsoon rains. The trade expects cotton acreage to rise in Telangana, where some chilli farmers may shift to cotton due to weak chilli prices.“The cotton-growing areas in Karnataka and Telangana have received a couple of spells of rain, which is a positive sign for the crop,” said Ramanuj Das Boob, a sourcing agent for multinationals and domestic buyers in Raichur. The expectation is that there will be an increase in area in Telangana as cotton prices are ruling firm ahead of the planting season, while chilli prices are not that great and may prompt farmers to go for cotton, Boob said.The monsoon, which began in the last week of May, has advanced, covering most of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, most parts of Telangana, and parts of Maharashtra.Inhibiting Factors“All the major cotton-producing states such as Telangana, Andhra Pradesh, and Karnataka have received good rainfall, and seed purchases have picked up in the past couple of days,” said Baya Reddy, agri-inputs sales leader at BigHaat, an online marketplace for agri-inputs. The purchase progress of cottonseeds ranges between 35% and 50% in these states, and planting may have taken place in about a tenth of the targeted areas. Reddy noted that cotton acreages are likely to decrease in a few areas such as Kurnool and parts of Telangana due to crop shifts that vary from market to market.In North India, where cotton planting begins early from mid-April, acreages are likely to drop by about a fourth due to factors such as increased pest infestation in recent years and rising labor costs.Kapas Prices Remain FirmBoob mentioned that raw cotton, or kapas, prices are ruling firm and ranging around ₹7,500-7,600 per quintal, above the minimum support price (MSP) levels in parts of Karnataka and Telangana. An increase in demand for cottonseeds for crushing is keeping prices firm, even as market arrivals of raw cotton have dwindled. In Karnataka, the daily market arrivals of cotton are around 2,000 bales, while in Maharashtra, it is around 15,000-20,000 bales. Boob said the cottonseed prices are ruling between ₹3,300 and ₹3,500 per quintal, up from around ₹2,800-3,000 about a month ago.READ MORE :> Increase in Kharif Cotton Cultivation Expected in Adilabad District

In early trade, the rupee opens flat vs the US dollar.The RBI’s positive economic outlook is likely to benefit the rupee from a favourable interest rate differential, say forex dealers; the Indian currency opened at 83.49 against the American currency and touched 83.50 in initial tradeREAD MORE :> AUSTRALIA'S Cotton crop production is forecast to reach 4.6 million tonnes for 2023-24

The rupee ended the day 14 paise worse against the US dollar, at 83.51.At the close of trading, the BSE Sensex rose 203.28 points or 0.27% to close at 76,490.08. During the day's trading, the Sensex had reached a high of 77,079.04, its highest level till date. The NSE's 50-share index Nifty rose 30.95 points or 0.13% to close at 23,259.20. The Nifty also made a new all-time high of 23,411.90 points during the day's trading.Read more :- Increase in Kharif Cotton Cultivation Expected in Adilabad District

It is anticipated that Australia would produce 4.6 million tons of cotton in 2023–2024.Australia’s cotton production is forecast to fall by 13pc to 1.1Mt in 2023-24 but remain 41pc above the 10-year average to 2022-23.Falling production reflects an estimated drop in area planted to cotton, which will drop by 16pc to 477,000ha, and more than offset higher aggregate yields.Queensland drove the total drop in production, estimated to fall 39pc to 310,000t due to reduced plantings of both dryland and irrigated cotton.Plantings were heavily impacted by dry conditions in early spring and lower irrigation water availability.Despite the fall in area, adequate rainfall and suitable temperatures during the growing season boosted yields.NSW is expected to harvest more cotton lint than last season, with production estimated to rise by 4pc to 761,000t due to strong yields.Timely planting of irrigated cotton and high water storages in the southern Murray–Darling Basin have supported an increase in irrigated cotton production across NSW.Below average rainfall and soil moisture in September and October led to disruptions in dryland cotton planting.However, above average rainfall in November prompted late planting across the state, leading to higher dryland production than previously anticipated.READ MORE :> Increase in Kharif Cotton Cultivation Expected in Adilabad District

In Adilabad District, More Cotton Is Anticipated for KharifAdilabad: With more farmers opting for cotton over soybeans, the area under cotton farming in Adilabad district is expected to rise during this Kharif season. Farmers have begun sowing cotton seeds following the onset of monsoon rains.It is estimated that cotton will be sown on 4.5 lakh acres this year, up from 4.16 lakh acres last year. In the undivided Adilabad district, cotton cultivation spans nearly 18 lakh acres.Agriculture department officials attribute the increase to farmers shifting from soybeans to cotton due to better price prospects for cotton. Farmers are preparing their land for sowing various cotton seed varieties, with many favoring the Rasi 659 variety. Adilabad is well-known for cotton cultivation and hosts several ginning and pressing industries in Telangana.Last year, the Centre offered a minimum support price (MSP) of Rs 7,020 per quintal for cotton. Farmers anticipate a hike in the MSP this year, especially after suffering losses due to flood damage to standing crops last season.Read More :> India's monsoon hits key western state

In early trade, the rupee drops 10 paise to 83.50 against the US dollar. Sensex breaches 77,000-mark; Nifty hits record high level in early tradeREAD MORE :> Punjab Cotton Production Faces Steep Decline as Acreage Hits Record Low 

This evening, the rupee appreciated by 10 paise to settle at 83.37 against the US dollar.At the close of trading, the BSE Sensex rose 1,618.85 points or 2.16% to close at 76,693.36. The NSE's 50-share index Nifty rose 468.75 points or  2.05% to close at 23,290.15.Read more :- Punjab Cotton Production Faces Steep Decline as Acreage Hits Record Low

Punjab's Cotton Production Is Declining Sharply as Acreage Drops to All-Time LowCotton cultivation in Punjab has hit a historic low, with only 96,614 hectares sown this year, a sharp decline from 1.79 lakh hectares last year, marking a 46% drop. Despite setting a lower target of 2 lakh hectares for cotton, the Punjab agriculture department failed to meet it.The main cotton-growing districts—Fazilka, Muktsar, Bathinda, and Mansa—have all seen significant reductions in cotton acreage. For instance, Fazilka's cotton area fell from 92,000 to 50,341 hectares.Several factors contribute to this decline, including pest infestations, spurious seeds, and inadequate procurement by the Cotton Corporation of India (CCI). Farmers often have to sell their cotton below the Minimum Support Price (MSP), with the CCI buying minimal quantities.Many farmers, disillusioned by poor returns and pest attacks, are shifting to paddy cultivation. The Punjab government’s crop diversification efforts seem to have faltered, with an increasing number of farmers now favoring paddy over cotton.Agriculture officials acknowledge the challenges but emphasize that economic viability ultimately drives farmers' choices. Despite advisories to promote cotton sowing, the persistent issues with MSP and climate conditions have made cotton a less attractive option for Punjab’s farmers.Read More :> Farmers Begin Sowing Early Varieties of Cotton in Indore Division

In early trade on Friday, the rupee gained 7 paise to 83.46 against the US dollar.The rupee inched up 1 paisa to 83.43 against the US dollar in early trade on Thursday on the back of a weak American currency and positive domestic equity markets.Read More :> India's monsoon hits key western state

Monsoon in India affects a major western stateIndia's monsoon rains have advanced into the western state of Maharashtra after covering almost all of the southern region, but they could weaken and deliver lower-than-normal rainfall next week, two senior weather officials told Reuters.Summer rains, critical to spur economic growth in Asia's third-largest economy, usually begin in the south around June 1 before spreading nationwide by mid-July, allowing farmers to plant crops such as rice, corn, cotton, soybeans and sugarcane.The monsoon arrived in Maharashtra on Thursday after spreading through the southern states earlier than usual, a senior official of the India Meteorological Department (IMD) told Reuters.Maharashtra is India's biggest producer of sugar and its second largest producer of cotton and soybeans.India has received 7% more rainfall than normal since the season began on June 1, the IMD says. The monsoon will advance further across India in the next few days but could weaken from next week, another weather official said."The monsoon will take a pause for few days," the official added. "Except for the west coast, most of the other regions will receive less rain," the official added.Farmers need to wait for proper moisture levels in the soil before sowing summer crops and should not sow them in a hurry, the official said.Both officials sought anonymity because they were not authorised to brief the media.The lifeblood of the nearly $3.5-trillion economy, the monsoon brings nearly 70% of the rain India needs to water farms and refill reservoirs and aquifers.In the absence of irrigation, nearly half the farmland in the world's second-biggest producer of rice, wheat and sugar depends on the annual rains that usually run from June to September.Read more :- Farmers Begin Sowing Early Varieties of Cotton in Indore Division

This evening, the rupee fell 10 paise to settle at 83.47 against the US dollar.At the close of trading, the BSE Sensex rose 692.27 points or 0.93% to close at 75,074.51. The NSE's 50-share index Nifty rose 201.05 points or 0.89% to close at 22,821.40.Read more :-  Fluctuations in container freight rates of Indian exports