Recent News

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.”

The Cotton Corporation of India (CCI) has begun registering farmers for cotton procurement for the current season across Vidarbha.Registration is being conducted at 33 procurement centres spread across eight districts—Akola, Amravati, Buldana, Chandrapur, Nagpur, Wardha, Washim, and Yavatmal. Farmers can enroll at these centres to sell their produce under the government procurement system.For this season, CCI has announced a guaranteed Minimum Support Price (MSP) of ₹7,020 per quintal for long staple cotton and ₹6,620 per quintal for medium staple cotton.District-wise, the procurement centres include seven in Akola, two in Amravati, five in Buldana, three in Chandrapur, two in Nagpur, six in Wardha, two in Washim, and six in Yavatmal. These centres operate under the Akola divisional office, while arrangements for other cotton-growing districts are being managed by the Aurangabad division.Actual procurement is expected to begin only after Diwali this year. Due to delayed rains, sowing was pushed back, and the cotton season has not yet fully commenced. Currently, picking is limited to areas where sowing took place earlier, around May or June.Market prices remain subdued, with new cotton trading between ₹6,500 and ₹6,700 per quintal, while old stock is fetching around ₹7,200. Farmers are closely monitoring price trends, as their selling decisions will depend on how rates behave once arrivals increase.In recent years, government procurement had slowed due to favourable open market prices. However, if market rates remain low this season, a shift back towards CCI procurement is likely.