Collaborative government-private approach needed to increase awareness of PBW pest & solutions available to prevent crop damage in cottonStressing that timely intervention is key to prevent crop damage in case of pink bollworm (PBW) pest as seen in cotton crop in northern India, an industry expert has suggested a collaborative government-private approach to increase the awareness as solution is available if the pest is detected in time.“Solutions are available. What is lacking is the awareness about the PBW among the farmers,” NK Rajavelu, CEO of Godrej Agrovet’s crop protection division, told businessline.Explaining further, he said farmers normally come to know about PBW impact only when they start seeing the boll bursting around the harvesting time. But the point is in PBW, the adult moth lays the egg during the flowering time itself inside the flower. So, the eggs once they hatch in the flower, the flower closes and becomes a boll. So, they start getting into larvae everything inside and when the boll burst then the PBW impact is seen. So, the awareness of this has to be communicated to the farmers at the time of flowering stage itself, Rajavelu said.Asked who should take the responsibility of educating the farmers, he said both private companies and the government agencies. “The extension arm of the government, for instance KVKs should have programmes especially for the cotton areas, how to really monitor the PBW attack from the beginning. Because it’s very difficult to identify the eggs inside the flower,” he said.Further, he mentioned that there are some monitoring mechanisms like the moth activities available which farmers can observe. “If the moth activity is there then you start spraying the chemicals or put pheromones around the cotton areas even before the pest attacks becomes serious,” he said.Output hitThough it is not that PBW appears every year, still it is imperative to help the farmers to understand that there are solutions available right from chemicals to pheromones, Rajavelu said. “If these are not used at the proper time, at the flowering time, then nobody can help. So that awareness programme has to be enhanced in terms of how to educate the farmers,” he said.Cotton crop in many parts of the northern region got damaged in 2023 due to deficient rain and pink bollworm pest to the extent of 65 per cent in Haryana and Punjab and 80-90 per cent in Rajasthan. The Agriculture Ministry has estimated cotton production this year to be lower by 6 per cent at 31.66 million bales (of 170 kg each) from 33.66 million bales in 2022.He is also hopeful that technologies like internet of things (IOT) and drone definitely will help in the longer run, but “today I do not think we have that type of technology. Probably there is an opportunity for companies like us and even government to work on that to help the farmers.”
This evening, the rupee strengthened by 33 paise and closed at Rs 83.00 against the dollar.Today the Sensex closed at 71483.75 points with a gain of about 969.55 points. This is a record closing level for Sensex. Whereas Nifty closed at the level of 21456.70 points with a gain of 274.00 points. This is the record closing level of Nifty.
This evening, the rupee strengthened by 7 paise and closed at Rs 83.33 against the dollar.Today Sensex closed at 70514.20 points with a gain of about 929.60 points. Whereas Nifty closed at the level of 21182.70 points with a gain of 256.40 points. Apart from this, a total of 3,892 companies were traded in BSE today, out of which about 2,064 shares closed with gains and 1,702 shares closed with decline. There was no difference in the share prices of 126 companies. Today, 419 stocks have closed at their 52-week high.
Rupee falls 1 paise to close at all-time low of 83.40 against US dollarThe rupee depreciated 1 paise to hit an all-time closing low of 83.40 against the US dollar on Wednesday amid a strong American currency overseas. Sensex, Nifty end with marginal gains amid volatilityIn the highly volatile session, the benchmark indices ended on a flat note with above 20,900. At close, the Sensex was up 33.57 points or 0.05 percent at 69,584.60, and the Nifty was up 19.90 points or 0.10 percent at 20,926.30.
The condition of cotton spinning mills deteriorated due to many problems.Cotton textile exports have been sluggish for almost 18 months, cotton yarn exports have declined by 56 per cent year-on-year during April-September, Indian yarn is losing its competitive edge in global markets due to rising costs, power shortage Costs have increased, with import duty for fine yarn continuing at 11 per cent. Yarn Varieties Strong and flexible balance sheet promises hope in the year aheadThe troubles of the cotton textile industry, especially the spinning mills, are not likely to ease any time soon. On the contrary, the profitability of mills will continue to decline amid low demand and realizations on one hand and stable cotton prices on the other.According to the South India Mills Association, southern mills, which account for about 55 per cent of the spinning capacity in the country, have been facing a prolonged slowdown for almost 18 months.However, on an all-India basis, textile shipments declined marginally year-on-year (y-o-y) between April-October 2023. Within this, apparel exports declined by about 14-15 per cent during the period, raising concerns, especially as there was a strong surge in the year-ago period (October 2022 compared to 2021).What's more, India's cotton yarn exports were down 56 per cent during April-September compared to the same period in FY 2021-22. The reasons are both external and internal.Half of India's yarn exports (in terms of volume) are to China and Bangladesh. Gautam explains, “Due to the shutdown of the Chinese economy in FY2023 and lower cost competitiveness of Indian yarn in early FY2023 (as domestic cotton prices crossed international prices, making Indian yarn less competitive in the global market) Done), export volumes declined." Shahi, Director, CRISIL Ratings Ltd.Additionally, global demand for textiles has remained weak, especially from high-consumption economies such as the US, UK and EU. Another war in the Middle East following the Russia-Ukraine war has also complicated supply chains and affected capital spending, jobs and consumption across countries.India has been no exception. Job uncertainty along with inflation and high interest rates are partly why discretionary spending, including apparel, has declined over the past six months. Lower-than-expected growth in domestic demand for readymades during the recent festive season has raised concerns for mills.Note that the industry is pushing for removal of the 11 per cent import duty imposed on cotton and expensive man-made fibers and filament yarns, which is further worsening end-user textiles like dresses, apparel and made-ups. Expensive and less competitive in global markets.Other costs are also added to make cotton yarn expensive. Recently, SIMA reported that a steep increase in electricity tariffs has increased production costs. This is no surprise, given that electricity accounts for more than 40 percent of total manufacturing costs.In such difficult times, the decline in cotton production estimates for cotton season FY2024 is not good news. Initial estimates point to cotton production at around 310 lakh bales, down from last year's around 337 lakh bales. (A bale of cotton weighs 170 kg). This may prevent cotton prices from falling further, which, along with electricity and other costs, could keep yarn prices high.According to CRISIL, which analyzed around 88 yarn spinners, the operating profitability of cotton yarn spinners will fall by 250-350 basis points to a decade low of 7-8 per cent this financial year from 10-10.5 per cent last financial year. . (One basis point is one hundredth of one percentage point). Shrinking spread among cotton and yarn, inventory loss, weak downstream demand are the major reasons. “Revenue will also decline by 13-15 per cent due to lower receipts, even though volumes are expected to grow by 10-12 per cent this financial year on the low base of last financial year,” the report said.However, what is helping the spinners is their relatively strong interest cover ratio after shrinking their balance sheet over the last three years. Most companies have also cut capital expenditure. Yet, it is only a pick-up in demand in global markets, which is so important for India's textile exports, that will help lighten the grim scenario.
This evening, the rupee strengthened by 1 paise and closed at Rs 83.38 against the dollar.Today the Sensex fell by about 377.50 points and closed at the level of 69551.03 points. Whereas Nifty fell by 90.70 points and closed at the level of 20906.40 points.
'Import duty on cotton affects opportunities in textile sector'Mark Levkowitz, president and chief executive officer of Supima, said import duties on cotton in India have had an impact on shipments of Supima cotton to India. Mr Levkowitz, who was in Coimbatore on Monday to participate in the Cotton Day 2023 event organized by Cotton USA, said the duty is a disincentive for brands that want to buy products made from Supima cotton in India.The production of Suvin (Indian extra long staple cotton) is very low and there is nothing to be defended (in India) by imposing duty on extra long staple American cotton Supima. He said, this duty is snatching away opportunities for Indian textile mills.He said that globally there is a shortage in the availability of extra long staple cotton this year.US Cotton Trust Protocol and Supima have collaborated to provide supply chain traceability and access to farm-level, science-based data. In the first four months of launch, 17,000 tonnes of fiber details have been uploaded to the project, which is positive and encouraging, he said.
This evening, the rupee closed at Rs 83.39 against the dollar with a weakness of 1 paise.Today Sensex closed at 69928.53 points with a gain of 102.93 points. Whereas Nifty closed at the level of 20997.10 points with a gain of 27.70 points.
Rain a dampener for farmers as rate of cotton and soybean dip furtherMost of the supplies in the markets are of raindamaged cotton and soyabean. Falling below the fair average quality (FAQ), the damaged produce does not qualify for MSP procurement by government agencies, say traders.Till last week, rates of cotton, which had a high moisture content due to bouts of unseasonal rains, had gone down below the minimum support price (MSP) of ₹7,020 a quintal, even for long staple grade. Now, even the best grade cotton — with an acceptable level of moisture of up to 8% — is fetching a rate either below MSP or barely ₹20 to ₹30 above the level, say market sources.The rates for good long staple cotton are in the range of ₹7,000 to ₹7,050 a quintal. However, the majority of the cotton arriving in the market has been damaged by rains. This produce is not fetching more than ₹6,000 to ₹6,500 a quintal, say market sources.Vijay Nichal, a ginner and a cotton farmer at Mahalgaon in Yavatmal, says the market is flooded with discoloured cotton which has been damaged due to rains. The low temperature may prevent further boll formation, he says.The MSP for soyabean is ₹4,600 a quintal. However, the majority of the supplies in the markets are of a lower grade due to rains. The best quality soyabean is fetching ₹4,800 a quintal, but the market mainly has damaged soyabean, said a trader at the agriculture produce market committee (APMC) yard at Kalamana. However, at Wani soyabean is fetching around ₹5,500 a quintal but farmers are hardly left with any produce with them, a trader said.Tukaram Jadhav, a farmer from Ghatanji in Yavatmal, said he could harvest around 3 quintals of soyabean while the rest of the crop could not be salvaged. He is expecting to get around ₹4,700 a quintal for the produce. The cotton that he has will not get more than ₹6,500 a quintal, he says.Manish Shah, a cotton trader, said the rates of lint have come down to ₹25,000 a bale from ₹28,000. The international market is bearish too. The traders are demanding that the government should do away with the reverse charge mechanism (RCM) on cotton which may enable them to increase the prices for farmers.RCM is a tax payable on purchase of material under the GST regime. This is applicable on select items including cotton. Generally, GST is payable only on sale of commodities, but certain commodities are under RCM.
Cotton season begins, challenges for the sectorGujarat textile industry has been experiencing low demand for more than a year. The new cotton season has brought little hope as textile units are struggling to operate at full capacity. While spinning mills are running at 70% capacity, ginning units are running at only 40% capacity. The high price of Indian cotton in the international market is hindering the export business of the industry.“Demand in the international market is low, and Indian cotton is not competitive in terms of prices,” said Jayesh Patel, senior vice-president, Spinners Association Gujarat.Currently, yarn prices are around Rs 230 per kg, and spinning units face a price disparity of Rs 5-10 per kg. This problem has increased due to less arrival of raw cotton due to unseasonal rains in some states.Gujarat Chamber of Commerce and Industry (GCCI) secretary Apoorva Shah also expressed similar sentiments. “The cotton season, which usually peaks between October and February, has seen reduced activity due to lower cotton arrivals, falling prices and unseasonal rains. The state’s 900 ginning units are operating at a fraction of their normal capacity, running only one shift instead of the usual three during the peak season,” he said.“Unseasonal rains have further affected the quality of cotton. Cotton has more moisture. Ginning units are incurring losses of around Rs 1,000-1,500 per bale and are running at only 33% of their capacity,” said Shah.Cotton prices are around Rs 55,000 per candy. Experts believe that due to high minimum support price (MSP) and low arrivals, prices will remain in the same range. Last year, farmers were not ready to sell cotton at low rates and this year also the arrival is less. Gujarat gets around 10-15 lakh bales from Maharashtra for pressing as the state has seen a significant increase in spinning activities in the last decade. However, if demand does not improve soon, the textile sector, especially ginning and spinning units, may face huge challenges for the second consecutive year.
Cotton prices returned to one year old levelsMost believe the week's rally was based on new speculative longs entering the market, coupled with two rounds of short covering – first above 81.40 and then once above 82.40. Nevertheless, a review of open interest data cannot confirm the new position.It was noted that the Southeast base has decreased sharply over the past week, indicating good demand for that growth. Other developments have not seen the same strength. Furthermore, there has been no notable indication of sales in any quantity to China or any other major importer. Certainly, the weekly export sales report was a big disappointment. However, that report reflected week-old data.The market outperformed expectations and reestablished its year-old 74-88 cent trading range. Still, most think the absolute high will be 85 cents with the possibility of another test in the mid-70s. The five-cent range of 77-82 cents is projected to be the key trading range.The market retreated more than 100 points in Friday (Dec. 8) trading on the back of the USDA's December supply demand report as it estimated world ending stocks of about 900,000 bales to rise to 82.4 million. The major bearish tone in the report came in the form of a decline of 1.6 million bales in world consumption, which has now declined to 113.73 million bales. Large decreases in demand were recorded in China (1.0 million bales less), Turkey (400,000 bales less), and Mexico and the US (100,000 bales less each). Demand remains the major hurdle in increasing cotton prices.Furthermore, it is noted that the Chinese, U.S., Australian, Japanese, Indian and European economies are experiencing low levels of economic activity. It is believed that world consumption could fall further to 300,000 to 400,000 bales.World production also declined by 500,000 bales from 113.5 to 113 million bales. U.S. production declined by 300,000 bales to 12.8 million. Turkish production also declined by 300,000 bales to 3.2 million. Production in Pakistan increased from 200,000 bales to 6.7 million bales.Carryovers in major importing countries increased by 600,000 bales, while carryovers in major exporting countries saw an increase of 400,000 bales. These levels suggest that very intense price competition will continue to affect world cotton trade. The WASDE report, while reducing US carryovers to very significant levels, was seen as slightly bearish due to the availability of cotton supply chasing a declining demand market.Preliminary U.S. projected acreage estimates for 2024 range from 9.8 to 10.8 million acres. Certainly, growers with good yields in 2023 will plant a little more in 2024 or so, with total plantings expected to be between 10.1 and 10.3 million acres.Source: Cotton Growers
This evening, the rupee closed at Rs 83.35 against the dollar with a weakness of 2 paise.Today Sensex closed at 69521.69 points with a fall of 132.04 points. Whereas Nifty closed at the level of 20901.20 points with a fall of 36.50 points. Apart from this, a total of 3,885 companies were traded in BSE today, out of which about 2,197 shares closed with gains and 1,570 shares closed with decline. There was no difference in the share prices of 118 companies. Today, 339 stocks have closed at their 52-week high.
New LC clause by US apparel buyer raises concernGarment factory owners are concerned as a US clothing retailer recently said it will not "process transactions involving any country, region, party" sanctioned by the UN, US, EU, or the UK.It mentioned it in a Letter of Credit (LC) issued last month for an apparel exporter in Bangladesh.Garment factory owners association BGMEA yesterday urged its members to "take the matter with utmost importance".Those receiving LCs with such a clause should ask the retailer if they are mentioning this for Bangladeshi suppliers only, reads a statement issued by BGMEA President Faruque Hassan."If the clause appears only in the LCs issued in favour of Bangladeshi suppliers, then this violates ethics."BGMEA members should reconsider doing business with such buyers, adds the statement.However, the clause mentioned in the LC from one particular retailer should not be interpreted as a sanction of any form against Bangladesh, because this is not a statutory order or notice by a country, it says."Moreover, the BGMEA did not receive any information from our diplomatic missions or from any official source to support any sanction or trade measure."The factory owner who received the LC from the US buyer notified the matter to the BGMEA earlier this week. Sources said the owner fears that such clauses may badly affect his business.This is the first time the particular US buyer has mentioned the clause in the LC, BGMEA President Hassan told The Daily Star yesterday. He had not disclosed the names of the local supplier or the buyer.Last week, the Bangladeshi mission in Washington sent a letter to the commerce ministry, highlighting the possibility of Bangladesh being slapped with a trade sanction over labour rights.Two major RMG exporters who deal with US retailers regularly said they had not seen such a clause before.
Cotton crop has been damaged due to unseasonal rain in Adilabad district.Many cotton farmers have suffered losses due to untimely rains and foggy weather in the erstwhile Adilabad district during the last two days. The cotton crop standing in the fields has become drenched. There is a possibility of the bolls turning black. There will not be much demand for such high moisture cotton in the market.The Cotton Corporation of India (CCI) gives an MSP of Rs 7,020 per quintal for cotton with moisture content less than eight percent. As the moisture content increases, the price of cotton starts decreasing.Incidentally, cotton harvesting has been delayed due to labor shortage. Most of the workers preferred to go to public meetings, party rallies and election campaigns and get paid rather than work and get paid.Sudeep of Gon village of Bhimpur mandal said that his standing cotton crop has got drenched in the rain. This will cause huge loss to himApart from this, many cotton farmers are worried that if the same weather conditions continue for a few more days, then the wet cotton as well as the red gram crop sown by them will be attacked by possible pests.Some farmers have picked up their cotton seeds and are drying them in their homes. Many people are waiting for the sun to rise when the weather conditions improve.Suresh Kumar of Jannaram in Mancherial district said that he has suffered loss as he could not get his stacked cotton removed in the last 15 days due to shortage of agricultural labourers.Due to rain in the last two days in the erstwhile Adilabad district, the standing crop of cotton as well as red gram has been damaged.
Bangladesh starts demo trial cultivation of BT cottonTransgenic varieties are being grown in 13 production areas, 5 research centersThe US Department of Agriculture (USDA) has said that Bangladesh has started limited cultivation for "demonstration trials" of two varieties of Bt (Bacillus thuringiensis) cotton in 13 production areas and five cotton research centers.The USDA's Foreign Agricultural Service's Dhaka Post said cultivation began on August 20, 2023, after an application by the Cotton Development Board (CDB) of Bangladesh was approved by the National Biosecurity Committee.CDB sought to release JKCH 1947 and JKCH 1050 BT varieties for "performance trials". The trials are being conducted on 138 farmers' plots (0.25 acres/plot) and 30 farmers' agricultural research plots (0.11 acres/plot), totaling 37.8 acres, the Dhaka Post said.planting delayedBt cotton farmers told Dhaka Post that they sowed Bt seeds a little late because they received the seeds late. Furthermore, they faced heavy rainfall after seed germination, which caused some damage and reduced vegetative growth.However, farmers reported clear differences in Bt plants compared to traditional varieties. "Farmers hope that cultivating Bt cotton will reduce their costs on pesticides," the post said.These Bt cotton varieties can resist bollworm and fall armyworm in the plant.This development comes as India has been unable to introduce any new Bt variety, especially the herbicide tolerant Bt One, since 2006.indian angleHyderabad-based JK Agri Genetics Limited, a branch of JK Organisation, collaborated with the Government of Bangladesh for field testing of these Bt cotton varieties.However, Gyanendra Shukla, chairman and director of JK Agri Genetics, popularly known as JK Seeds, told BusinessLine two years ago that “We are not doing anything on our end. Nor are we engaged in any business activity in Bangladesh.The CDB of Bangladesh is dedicated to the development of hybrid and short duration, high yielding cotton varieties that exhibit desirable fiber characteristics.The Dhaka Post said CDB, in collaboration with a Bangladesh-based private seed company, is actively importing hybrid cotton seeds from China. Research is also being conducted to assess the suitability of these imported varieties for local conditions.cotton production targetAccording to CDB, cotton is cultivated in 39 out of 64 districts of Bangladesh. But cotton cultivation is only 0.55 percent of the total 8.1 million hectares of cultivable land in the neighboring country.Locally, Bangladesh produces less than 2 percent of its total cotton consumption and the area under natural fiber has increased only marginally since 2016.The Bangladesh government aims to meet 10 percent of its fiber demand through domestic production. Cotton is most cultivated in Bangladesh during the Rabi season. But expansion in cotton cultivation has been hampered by the fact that growers are having to abandon the cultivation of aman rice and winter vegetables grown during June-July.
This evening, the rupee strengthened by 5 paise and closed at Rs 83.33 against the dollar.Whereas Nifty closed at the level of 20855.10 points with a gain of 168.30 points. Apart from this, a total of 3,875 companies were traded in BSE today, out of which about 1,787 shares closed with gains and 1,965 shares closed with decline. There was no difference in the share prices of 123 companies. Today, 375 stocks have closed at their 52-week high.
CCI agrees to buy cotton at MSP, but sets conditionsBATHINDA: The Cotton Corporation of India (CCI) on Tuesday assured farmers in Abohar that it will resume cotton procurement in the local grain market from December 7, but imposed two conditions - the cotton cannot be of inferior quality. .And the weight of the crop in one heap cannot exceed 30 quintals.CCI's assurance came during a meeting with farmers, which was called after farmers blocked the Abohar-Fazilka road.After this, Fazilka district administration organized talks between the two places.CCI had a few days ago stopped purchasing cotton at procurement centres, mainly Abohar, one of the largest cotton procurement centers in Punjab.With CCI away, cotton prices had declined and were even trading around Rs 4,500 per quintal at many places, while the minimum support price for 27.5-28.5 mm long staple stood at Rs 6,920 per quintal and for 24.5 Was Rs 6,620 per quintal. -25.5mm long staple.Farm unionists Gunwant Singh and Subhash Godara, who led the protest on Tuesday, said it was found that some traders were bringing poor quality cotton crop from villages in Rajasthan near Abohar.“Farmers have resolved that they will ensure that traders do not bring low quality crops from the neighboring state. Farmers in Rajasthan can bring their crops in smaller quantities after ensuring that the quality is not bad. If the quality is not up to standard, they will not get commensurate prices.MSP. After our protest, CCI has assured to start the procurement,” Gunwant said.A Cotton Corporation of India official said the procurement was being done as per the quality norms. Overall, so far 5.95 lakh quintals of raw cotton has been purchased from the procurement centers of Punjab. In such a situation, 1.12 lakh quintals of cotton has been purchased below the MSP.
Unseasonal rain hits cotton supply, prices still stagnantUntimely rain has disrupted supply of cotton in spot markets of Madhya Pradesh in the peak demand season though tepid buying by textile mills in anticipation of lower prices has kept cotton prices almost stagnant.The ginning units of Madhya Pradesh that are usually fully occupied during the peak arrival season starting October have restricted capacity utilisation on lower offtake by mills.The new season supply of cotton starts from October and daily arrivals in the state at present is estimated at around 12,000-13,000 bales as against around 18,000 bales a fortnight ago.Madhya Pradesh Cotton Ginners and Traders Association founder president Manjeet Singh Chawla said, “Textile mills are in a wait and watch mode. This is the peak supply and demand season but mills have not started placing bulk orders as they are looking for a price drop.”Kailash Agrawal, owner of ginning units in Khargone said, “This time everyone has adopted a cautious move amid temporary fall in supply and demand from mills”.
Brazil's cotton production growth: increasing production and global dominance in 2023/24Marking a historic milestone, Brazil's cotton sector is expected to produce a record-breaking 14.7 million bales in the marketing year 2023/24, which would surpass the United States. Driven by optimal weather conditions and a strategic shift in marketing timelines, the strength of Brazilian cotton is set to reshape global trade dynamics, with exports increasing to 11 million bales and ending stocks that will be lost in the international cotton market. Shows the influential role of the country.highlightBrazil's Cotton Production Increase: Brazil's cotton production projections for marketing year (MY) 2023/24 have been revised upward, indicating a record crop and yield. Production is estimated at 14.7 million bales (3.2 million metric tons), with optimal weather conditions contributing to this achievement.Global production dynamics: Brazil is projected to overtake the United States in cotton production in 2023/24, marking a historic shift in the global cotton landscape.Area estimates and optimal weather conditions: The estimated area of cotton cultivation in Brazil for MY 2023/24 is 1.7 million hectares. The increase in production is attributed to favorable weather conditions, which have positively impacted yields in key states.Change in marketing year: Following USDA's revision, emphasizing the current nature of the projections, MY 2023/24 is now equivalent to cotton production entering the market in 2023 rather than 2024.Domestic consumption and exports: The Post estimates Brazil's domestic cotton consumption for my 2023/24 to be 3.3 million bales (750 thousand metric tons). Exports are estimated at 11 million bales (2.4 million metric tons) due to lower production in major cotton producing countries such as China, India and the United States as well as increasing global demand and consumption.Final Stock Projection: The post mine is predicted to end up with six million bales (1.3 million metric tons) of stock for 2023/24. This is largely influenced by high volumes of exports and domestic consumption.conclusionAs Brazil emerges as a major force in global cotton production, forecasts for MY 2023/24 underline not only the country's agricultural potential, but also its impact on shaping the trajectory of the cotton industry . With a strong production growth, Brazil is set to become an export leader, demonstrating the resilience and potential of its cotton sector. The historic shift in marketing dynamics has further strengthened Brazil's position as a major player, paving the way for an exciting era in the world of cotton trading.
Indian cotton prices fall to 2-year low on weak demandSpinning mills are buying cautiously in view of the global economic crisisCotton prices in India have fallen to a two-year low due to weak demand due to the economic crisis in western countries, especially the US and Britain, traders said.“There is practically no demand for cotton despite the low crop, which is in the range of 300 lakh bales (170 kg) including carryover stocks from last year. But demand for clothes in western countries is sluggish due to economic problems,'' said a source working for a multinational trading firm. Therefore, mills are not ready to buy even though farmers are ready to sell cotton (unprocessed cotton) at ₹7,000 per quintal“Due to lack of demand, cotton seed prices have fallen below Rs 3,000 per quintal, while ginned cotton prices have gone up to Rs 56,000-55,000 per candy (356),” said Ramanuj Das Boob, sourcing agent for Raichur-based multinational companies. It has reduced." Karnataka.CCI buys MSPRaw cotton prices have now fallen to ₹7,200-7,300 per quintal and in some cases to the minimum support level of ₹7,020 per quintal for long staple cotton. “This is at a level that farmers have not seen in the last two seasons,” Das Bub said.Currently, Shankar-6 cotton, the benchmark for exports, is quoted at ₹54,850 per candy (356 kg) in Rajkot, Gujarat. On the other hand, at the Rajkot Agricultural Produce Marketing Committee (APMC) yard, the price of raw cotton is ₹7,100 per quintal.In the global market, cotton futures on the Intercontinental Exchange, New York are currently quoted at 78.25 US cents per pound (₹51,600 per candy).The fall in cotton prices has resulted in the Cotton Corporation of India (CCI) procuring 2.5 lakh bales (170 kg each) from growers at MSP. It has spent more than ₹900 crore on these purchases so far.delayed arrival of poll“CCI procurement is not much compared to the arrival of 58 lakh bales so far. Last week, around 9 lakh bales reached various APMCs in the country. Daily arrivals were 1.1 lakh bales to 1.3 lakh bales, Popat said.“The arrivals have been low so far due to elections in Madhya Pradesh and Telangana. Now that they are over, inflows will increase and peak. This could put further pressure on prices,” said Das Boob.Popat said that spinning mills are facing problems due to fall in yarn prices. “CCH-30 (combed cotton hosiery) yarn prices have declined to Rs 230 per kg from Rs 245 a month ago. There is no movement of yarn,” he said.Indian Texpreneurs Federation (ITF) convenor Prabhu Dhamodharan said cotton prices are gradually coming down in line with the actual demand trend.challenging situationHe said, an estimate based on the usage survey and survey of 5 million spindles in Tamil Nadu shows that overall yarn production in South India has declined by about 17 per cent in November.“The current situation is challenging for many spinning mills. Yarn production in the sector during November was lower by about 35 to 40 million kg compared to the maximum utilization level. Besides, 200 mills in the southern region are using 10-20 per cent viscose to produce blended yarn,” Dhamodaran said.Lower prices may encourage purchasing by exporters. “Once the prices fall to ₹54,500-55,000 per candy level, exporters will start showing interest. Right now, only Bangladesh is buying,” said Das Bub.“Around 3.5 lakh bales have been lifted for export. But the shipment of cotton and yarn is less,” Popat said.growth of non-cotton fibersDhamodharan said two factors will keep cotton prices in check in the next few months. “A 15-20 per cent decline in production by the spinning sector in major consuming states like Tamil Nadu in the current quarter and increasing trend of spinners producing synthetic and cellulosic fiber blended yarns will keep prices under control for the next few months,” it said.Non-cotton fiber sales from manufacturers are seeing good year-on-year growth. The ITF convenor said the trade expects less volatility from the current season through September 2024. There will be a more stable trend within the fluctuations of ₹1,000-1,500 per candy, which is a very basic requirement for the export competitiveness and performance of the entire value chain.The source working with the multinational company, who did not want to be identified, said the current trend will continue for the next few months. “Something has to happen to increase demand. But we don't see anything happening now,' the source said.Although the US crop is down, Brazil is making up for it. “But weak demand is holding back the market,” the source said.Dhamodharan said that although retailers have started showing interest in placing fresh orders after their excessive inventories are exhausted, they are all playing it safe and keeping a tight control on their inventories."We need to wait until the first quarter of the upcoming calendar year to get accurate visibility of consumption trends across all developed markets," he said.
| title | Created At | Action |
|---|---|---|
| Collaborative government-private approach needed to increase awareness of PBW pest & solutions available to prevent crop damage in cotton | 15-12-2023 17:23:30 | view |
| This evening, the rupee strengthened by 33 paise and closed at Rs 83.00 against the dollar. | 15-12-2023 16:28:44 | view |
| This evening, the rupee strengthened by 7 paise and closed at Rs 83.33 against the dollar. | 14-12-2023 17:27:32 | view |
| Rupee falls 1 paise to close at all-time low of 83.40 against US dollar | 13-12-2023 16:43:39 | view |
| The condition of cotton spinning mills deteriorated due to many problems. | 13-12-2023 13:27:50 | view |
| This evening, the rupee strengthened by 1 paise and closed at Rs 83.38 against the dollar. | 12-12-2023 16:27:34 | view |
| 'Import duty on cotton affects opportunities in textile sector' | 12-12-2023 12:23:53 | view |
| This evening, the rupee closed at Rs 83.39 against the dollar with a weakness of 1 paise. | 11-12-2023 16:27:25 | view |
| Rain a dampener for farmers as rate of cotton and soybean dip further | 11-12-2023 11:55:12 | view |
| Cotton season begins, challenges for the sector | 11-12-2023 11:23:03 | view |
| Cotton prices returned to one year old levels | 09-12-2023 11:17:55 | view |
| This evening, the rupee closed at Rs 83.35 against the dollar with a weakness of 2 paise. | 07-12-2023 16:38:11 | view |
| New LC clause by US apparel buyer raises concern | 07-12-2023 13:15:40 | view |
| Cotton crop has been damaged due to unseasonal rain in Adilabad district. | 07-12-2023 12:57:17 | view |
| Bangladesh starts demo trial cultivation of BT cotton | 07-12-2023 11:49:27 | view |
| This evening, the rupee strengthened by 5 paise and closed at Rs 83.33 against the dollar. | 06-12-2023 16:47:39 | view |
| CCI agrees to buy cotton at MSP, but sets conditions | 06-12-2023 14:59:19 | view |
| Unseasonal rain hits cotton supply, prices still stagnant | 06-12-2023 13:00:01 | view |
| Brazil's cotton production growth: increasing production and global dominance in 2023/24 | 06-12-2023 12:56:04 | view |
| Indian cotton prices fall to 2-year low on weak demand | 06-12-2023 11:58:33 | view |
