Variations in Indian exporters' container freight chargesOn the India-Europe Western route, rates to the UK for 40-foot containers declined, while rates for 20-foot containers remained at the former level. Similarly, rates to Rotterdam remained stable for 20-foot containers but decreased for 40-foot containers. Bookings from West India to Genoa also saw rates decline.At the same time, import rates to India from Europe and the Mediterranean also declined. Rates from Felixstowe/London Gateway and Rotterdam to West India declined significantly, as did rates from Genoa to West India.The India-US trade route also saw significant rate adjustments. Rates from West India to the US East Coast and West Coast declined from their previous highs, but a slight increase was seen for the latter. Rates from the US Gulf Coast to West India decreased.On the return journey from the US to India, short-term contract rates showed a cooling trend for East Coast but remained stable for West Coast and Gulf Coast to West India shipments.Intra-Asia trades originating from India continued to face challenges, particularly negative rates on some routes to China and Singapore, although shipments to Jebel Ali saw marginal improvement.Despite these freight rate challenges, India’s export sector has shown a mild increase in exports by value at the start of FY 2024-25. The Federation of Indian Export Organisations (FIEO) underlined the impact of global geopolitical tensions on trade but remained optimistic about future growth on potential opportunities arising from the US-China tariff war and the need for supportive measures for the export sector.Read more :- Local Spinners Losing Yarn Market to Import Surge
Yarn market declines for local spinners due to import surgeDue to higher production costs, domestic textile millers, especially spinners, are facing uneven competition from foreign competitors, leading to a loss of orders for yarn even from local ready-made garment (RMG) exporters. RMG exporters now prefer sourcing raw materials from abroad, which hinders the growth of the local spinning sector.According to central bank data, yarn imports recorded double-digit growth during the first nine months of the current fiscal year (FY), while imports of other raw materials like raw cotton, textiles, and staple fiber declined. Yarn imports grew by over 10 percent during the July-March period of FY 2023-24 compared to the same period last year, amounting to $2.32 billion, up from $2.10 billion in FY 2022-23.Overall imports of RMG inputs fell by 9.1 percent during the first nine months: raw cotton by 24.9 percent, textiles and articles by 8.2 percent, staple fiber by 6.1 percent, and dyeing and tanning materials by 3.1 percent. The country spent $12.17 billion on these goods, down from $13.39 billion in the same period last year.Exporters argue that locally produced yarn is more expensive than imported varieties. Textile millers attribute this to high utility costs and poor gas supply, which drive up production costs. Syed Nurul Islam, chairman and CEO of Well Group, noted that as imports of raw materials like raw cotton and staple fibers declined, yarn imports increased. Yarn is essential for manufacturing fabrics and ready-made garments. The Well Group, with six production units—including one spinning, one fabric, and four garment factories—illustrates this trend. Garment exporters typically source raw materials locally when they face work order pressures and need to shorten lead times despite price differences. However, high utility costs and gas shortages have driven up the prices of locally produced yarn, explained Islam, who is also a director of the Bangladesh Textile Mills Association (BTMA).Local yarn is losing its competitiveness as garment exporters increasingly source yarn from abroad under bonded warehouse facilities, with Indian, Pakistani, and Chinese yarn being cheaper than Bangladeshi yarn. Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted that the increasing yarn imports despite the decline in other raw material imports is concerning. He emphasized the need to boost local consumption and bring more garment work orders.BGMEA President SM Mannan Kochi pointed out that local yarn prices are higher than imported ones, making exporters opt for foreign yarn despite receiving cash incentives for sourcing locally. BTMA President Mohammad Ali Khokon accused importers of selling yarn at dumping prices, supported by various government policies in their countries, such as incentives on labor costs and electricity, which allow them to sell at their production cost.In contrast, Bangladesh lacks the main raw material—cotton—and faces gas supply shortages and rising bank interest rates. Khokon warned that continued reliance on imported yarn could lead to many textile mills shutting down, unable to compete. Local textile mills currently meet about 80 percent of the knitwear subsector demand and 35-40 percent of the woven sector demand.Bangladesh earned $37.20 billion from RMG exports during the July-March period of FY 2023-24, with knitwear contributing $21.01 billion and woven garments $16.19 billion, according to the Export Promotion Bureau (EPB) data.Read More :> Farmers Struggle to Dry Harvested Cotton, Fear Price Drop
In early trade, the rupee gains 7 paise to 83.44 against the US dollar. The rupee recovered from the lower level and appreciated 7 paise to 83.44 against the US dollar in early trade on Wednesday, taking cues from domestic equity markets and lower crude oil prices overseas. Read More :> El Niño ending; 60% chance of La Niña developing during July-September: WMO
This evening, the rupee closed at Rs 83.53 against the dollar, down 39 paise.Amid the counting of votes for the Lok Sabha elections, the stock market closed with a huge decline on June 4. The Sensex fell 4389.73 points to 72,079.05 amid heavy selling pressure in many sectors including power sector, PSU banks, metal shares, telecom. This decline in percentage is 5.74%. NSE's Nifty also closed at 21,884.50 after suffering a huge loss of 1,379.40 points or 5.93%.Read more :- Farmers Struggle to Dry Harvested Cotton, Fear Price Drop
60% possibility of La Niña emerging between July and September; El Niño ending: WMOThe 2023/24 El Niño event, which prompted record-breaking temperatures and extreme weather across the globe, is likely to transition to La Niña conditions later this year, according to the latest update from the World Meteorological Organisation (WMO).According to the WMO, the world has experienced its warmest April ever and the eleventh consecutive month of record-high temperatures. Sea surface temperatures have also been record-high for the last 13 months.The WMO says the condition is being caused by a combination of naturally occurring El Niño — an abnormal warming of waters in the central and eastern Pacific Ocean — and excess energy trapped in the atmosphere and ocean by greenhouse gases generated by human activities.Amid an existing but weakening El Niño, millions of people in South Asia, including India and Pakistan, endured scorching heat in April and May.According to the latest forecast from WMO's long-term forecast centres, there is a 50 per cent chance of neutral conditions or a transition to La Niña during June-August. The probability of La Niña conditions increases to 60 per cent during July to September and 70 per cent during August to November. The chance of El Niño re-developing during this time is negligible.While El Niño is associated with weak monsoon winds and dry conditions in India, La Niña — the opposite of El Niño — brings abundant rainfall during the monsoon.Last month, the India Meteorological Department had forecast that India will receive above-normal rainfall during the monsoon season, as favourable La Niña conditions are expected to develop by August-September. The monsoon is crucial to India's agricultural landscape, where 52 per cent of the net cultivated area is dependent on it. It is also important for power generation across the country, besides replenishing vital reservoirs for drinking water.El Niño is ending; 60% chance of La Niña developing during July-September: WMOThe 2023/24 El Niño event, which prompted record-breaking temperatures and extreme weather around the globe, is likely to transition to La Niña conditions later this year, according to the latest update from the World Meteorological Organisation (WMO).The world has experienced its warmest April ever and the eleventh consecutive month of record-high temperatures, according to the WMO. Sea surface temperatures have also been record-high for the past 13 months.The WMO says the condition is being caused by a combination of naturally occurring El Niño — an abnormal warming of waters in the central and eastern Pacific Ocean — and excess energy trapped in the atmosphere and ocean by greenhouse gases generated by human activities.Amid an existing but weakening El Niño, millions of people in South Asia, including India and Pakistan, endured scorching heat in April and May.According to the latest forecast from WMO's long-range forecast centres, there is a 50 per cent chance of neutral conditions or a transition to La Niña during June-August. The probability of La Niña conditions increases to 60 per cent during July to September and 70 per cent during August to November. The chance of El Niño re-developing during this time is negligible.While El Niño is associated with weak monsoon winds and dry conditions in India, La Niña — the opposite of El Niño — brings abundant rainfall during the monsoon.Last month, the India Meteorological Department had forecast that India will receive above-normal rainfall during the monsoon season, as favourable La Niña conditions are expected to develop by August-September. The monsoon is crucial to India's agricultural landscape, where 52 per cent of the net cultivated area is dependent on it. It is also important for power generation across the country, besides replenishing vital reservoirs for drinking water.Read more :- Farmers Struggle to Dry Harvested Cotton, Fear Price Drop
This evening, the rupee gained 32 paise against the US dollar to settle at 83.14.At close of trading, the BSE Sensex rallied 2,507.47 points or 3.39% to close at an all-time high of 76,468.78. The 50-share NSE index Nifty rose 733.20 points or 3.25% to close at a new high of 23,263.90.Read more :- Cotton Sowing Hits Record Low in Punjab, Lagging Far Behind Target
Farmers Face Price Drop Fear as They Struggle to Dry Harvested CottonUma Gandhan, a farmer from Valathamangalam village in Thirunallar commune, was using a fan to dry his cotton in a part of his house, a method employed by hundreds of farmers in the region affected by recent off-season rains. Cotton is grown on over 2,500 acres in the district."I had raised cotton on two acres, and during harvesting, I found many cotton flowers had high moisture content. Now, I am trying to dry the cotton using a fan, but I am facing considerable losses this time," said Uma Gandhan.“Private traders who usually purchase from us are unwilling to settle for a fair price due to the poor quality of cotton caused by the recent rain. I can harvest cotton from the field only after receiving confirmation from a trader. Despite applying all the recommended chemicals, the rain damage couldn’t be reversed,” explained P. Pandiyan, a farmer from Thennankudi village.“For one acre, a farmer spends about ₹60,000. We pluck cotton in four rounds, with the first round typically yielding the best quality cotton, assuring a return on our investment. This time, the first round was compromised as rainwater entered the crop before the flower burst. We expect our insurance money and government relief soon. However, officials cite the Model Code of Conduct as the reason for delaying our relief,” said P.G. Somu, Joint Secretary of Delta Vivasayigal Sangam.“Traders are offering ₹50-60 per kg of cotton, leading to significant losses,” he added.D.N. Suresh from the Kadaimadai Vivasayigal Sangam claimed the district regulated market was ineffective in procurement as it couldn’t attract many traders. “The government marketing committee, like private traders, should procure directly from the field. Our regulated market in town isn’t effective during a crisis. Transporting cotton to Karaikal town is expensive, adding to our losses,” he said.*Auction Soon*A district-level official from the Agriculture Marketing Department announced that cotton auctions would start soon in conjunction with other regulated markets in Tamil Nadu.“We are in discussions with marketing committees in Tamil Nadu and plan to start cotton auctions in our regulated market from the second week of June. We are taking steps to attract traders to secure good rates. We have advised farmers to dry their cotton and delay the harvest for better prices.”A district-level Agriculture Department official told The Hindu, “We have estimated a 30% loss in the total harvest across the district and have reported this to higher officials in the Puducherry government. We expect an announcement related to crop relief after the Lok Sabha election results.”“The Government of India has set the Minimum Support Price (MSP) for this year at ₹66.20 per kg. If prices fall below this, we expect the Cotton Corporation of India to step in and procure the cotton,” he added.Read More :> Indian Cotton Farmers Face Labor Challenges
Punjab Cotton Sowing Sets New Low and Fall Short of GoalEfforts to conserve water took a hit this cropping season in Punjab as the area under cotton cultivation fell to less than 1 lakh hectares for the first time. The Punjab government had aimed to increase cotton sowing to 2 lakh hectares from 1.73 lakh hectares in the 2023-24 season. However, according to data from the Punjab Agriculture Department, cotton was sown on only 92,454 hectares as of May 29.Cotton, a traditional crop in Punjab, is usually grown in specific areas and is considered a main alternative to water-intensive crops. The ideal time to sow cotton is until May 15, but sowing can continue until May 31 or even the first week of June. Despite the introduction of BT cotton in the mid-2000s, which initially saw considerable uptake, cotton cultivation has faced significant challenges in recent years.In 2015, a whitefly attack severely damaged the crop, with nearly 60% of the yield affected. Farmers received compensation of Rs 8,000 per acre only after prolonged protests. Subsequent years saw infestations of pink bollworm and whitefly, leading to a drastic reduction in cotton cultivation. For the first time in decades, sowing dropped to less than 2 lakh hectares in the 2023-24 season. Now, in a significant setback, it has fallen below 1 lakh hectares.The failure to contain pest attacks has been attributed to spurious seeds and pesticides. Farmers have expressed frustration over the lack of efforts to restore their confidence in cotton cultivation. Persistent crop damage, insufficient compensation, and the absence of a crop insurance scheme have led many farmers to abandon cotton. “We are fed up with the losses of cultivating cotton. Now we have decided to return to paddy where we are assured of handsome returns,” said Karnail Singh, a farmer from Sangat.Read More :> PAKISTAN: Punjab Misses Cotton Sowing Target
In early trade, the rupee gained 42 paise to 83.00 against the US dollar.This comes after rupee appreciated 5 paise to 83.24 against the US dollar in early trade on Friday boosted by robust sentiment in domestic equity markets and a downward trend in the crude oil prices overseas.Read More :> Indian Cotton Farmers Face Labor Challenges
This evening, the rupee ended the day 14 paise worse against the US dollar, at 83.46.At the close of trading, the BSE Sensex rose 75.71 points or 0.10% to close at 73,961.31. The NSE 50-share index Nifty rose 42.05 points or 0.19% to close at 22,530.70.Read more :- Indian Cotton Farmers Face Labor Challenges
Indian Cotton Growers Deal with Workplace Issues Some farmers in northern India are shifting to other crops as a shortage of labor drives up costs. Baldev Singh, a farmer about 20 km from Bathinda in Punjab, plans to switch from cotton to moong (green gram) and Basmati rice this year."I'm switching from cotton for two reasons: I can't get a price matching the minimum support price, and I face labor shortages with rising costs," Singh told Businessline over the phone.Singh's situation is not unique. Other farmers in Punjab, Rajasthan, and possibly Gujarat may follow suit. Meanwhile, some farmers like Jaipal Reddy in Telangana are considering high-density planting system (HDPS) cotton.NREGS ImpactIndustry sources predict lower cotton acreage in Punjab and Rajasthan due to labor shortages. Both states faced severe labor shortages last year, compounded by the National Rural Employment Guarantee Scheme (NREGS), which offers workers around ₹300 a day."In Rajasthan, some farmers were willing to give a portion of their crop to laborers to harvest cotton bolls," said a source who requested anonymity.Bhagirath Choudhary, Founder Director of the Jodhpur-based South Asia Biotechnology Centre (SABC), noted that Rajasthan's cotton farmers rely less on migrant labor than those in Punjab and Haryana. However, labor availability was still an issue during the cotton-picking season last year.Rising Picking CostsTelangana, one of the largest cotton-growing states, faces a severe labor shortage, especially for picking. Cotton, primarily grown by smallholders, competes with paddy for labor during the kharif season, making it difficult for farmers to find workers."Farmers used to pay ₹10 per kg for picking cotton. Now it's ₹12," said Ramanuj Das Boob, a sourcing agent for domestic mills and multinationals based in Raichur.In northern India, the problem is severe in the upper Rajasthan Ganganagar tracts and the adjoining Punjab regions."I paid ₹12 per kg and also had to cover transport and other expenses. Overall, I spent over ₹15 per kg for harvesting. Returns have been around ₹60," said Singh.Pink Bollworm Infestation"The job guarantee work is more attractive and comfortable for many workers. If they find such work during the picking season, it's hard for us to find labor," said Somanna, a farmer from Narayanpet in Telangana.Choudhary of SABC explained that laborers were reluctant to work in Rajasthan's fields due to low productivity from severe pink bollworm infestations. "The first two pickings were fine, but farmers had labor issues for the third and fourth pickings due to poor yields from pest damage," he said.Rajireddy, a farmer from Janagaon in Telangana, added, "Since all farmers in a village need laborers almost simultaneously during harvest, it becomes tough to find them. They charge between ₹300 and ₹500."Shift in Labor DynamicsDevelopmental activities in Bihar and Uttar Pradesh have reduced the outflow of labor to other states, particularly in northern India. "If 100 people used to leave these states for farm jobs for six months starting from the kharif season, now only about 70 are going," said an industry source.Gujarat faces a similar situation, as it relies on labor from Madhya Pradesh. "Gujarat farmers are struggling because many workers from MP aren't going there in search of jobs," the source added.In Bihar, paddy, maize, and wheat crops keep workers close to home. Industrial units, such as ethanol manufacturing, have also provided local employment. In Uttar Pradesh, industrial activities have increased, making it the leading state for ethanol production."The labor shortage is growing, but it's not yet time to panic," said Rajkot-based Anand Popat, a trader of cotton, yarn, and cotton waste.Jaipal Reddy plans to expand his HDPS cotton cultivation from one acre to ten acres this year. "It's getting harder to find labor for cotton farming. Last year, I tested HDPS on one acre. This time I'm expanding to ten acres," he said.Read More :> PAKISTAN: Punjab Misses Cotton Sowing Target
In early trade, the rupee advances 5 paise to 83.24 against the US dollar. At the interbank foreign exchange market, the local unit opened at 83.25 and gained further to trade at 83.24 against the greenback in initial deals, registering an increase of 5 paise its previous closing level.Read More :> PAKISTAN: Punjab Misses Cotton Sowing Target
This evening, the rupee gained 3 paise against the US dollar to settle at 83.32.At the close of trading, the BSE Sensex fell 617.30 points or 0.83% to close at 73,885.60. The NSE's 50-share index Nifty slipped 216.05 points or 0.95% to close at 22,488.65.Read more :- PAKISTAN: Punjab Misses Cotton Sowing Target
Pakistan: Punjab Fails to Meet the Cotton Seeding GoalPunjab has fallen short of its cotton sowing target for the 2024-25 season and has not even matched last year’s sowing levels.Farmers have shown less enthusiasm for cotton cultivation this season, mainly due to unfavorable cultivation economics and extreme weather conditions, including unprecedented heat and canal water shortages..The target for cotton sowing was set at 4.15 million acres, but only about 3.4-3.5 million acres—approximately 19 percent less than the target—have been sown, according to estimates.The provincial agriculture department initially expected cotton sowing to be completed by mid-April. However, due to slow progress caused by multiple factors, the cultivation period was extended to the end of May, without achieving the desired results.The official described the situation as alarming, particularly noting significant shortfalls in the core cotton belt of south Punjab, including the DG Khan, Multan, and Bahawalpur Divisions. These divisions account for 85 percent of the total cotton area in the province. Official figures show that DG Khan, Multan, and Bahawalpur fell short of their sowing targets by 34 percent, 30 percent, and 23 percent, respectively.Despite efforts by the provincial agriculture department to maximize cotton cultivation, severe and prolonged heatwaves over the past month have adversely affected the crop. Temperatures have exceeded normal summer levels by 4-6 degrees Celsius, damaging newly sown saplings and standing crops. Farmers had to resow crops due to rare cold conditions that hindered seed germination and a phenomenon called 'karand,' where seeds could not sprout due to soil hardening after rains.Late-sown crops faced extreme heat in May, with temperatures exceeding 40 degrees Celsius, burning cotton saplings despite growers' best efforts. Farmers initially attempted machine planting, which was unsuccessful. They then tried hand-sowing on beds, which yielded some positive results but required additional effort and financial strain.Khalid Khokhar, President of Pakistan Kissan Ittehad (PKI), highlighted that the high prices of agricultural inputs such as fertilizer, pesticides, diesel, and electricity, coupled with decreasing produce prices, have discouraged farmers from growing cotton. Last year, the previous government promised to buy cotton at Rs8,500 per maund but failed to implement the plan. This year, there has been no announcement regarding cotton’s indicative price.Read More :> PAKISTAN : Over 100,000 Acres in Faisalabad Under Cotton Cultivation
In early trade, the rupee drops 2 paise to 83.42 against the US dollar. At the interbank foreign exchange market, the local unit opened at 83.42 and slipped further to 83.44. It soon recovered to trade at 83.42 against the greenback, registering a loss of 2 paise from its previous closing level.READ MORE :> The Textile Industry Calls for Policy Revisions to Ensure Competitive Raw Material Prices
This evening, the rupee fell 17 paise to settle at 83.35 against the US dollar.At the close of trading, the BSE Sensex fell 667.55 points or 0.89% to close at 74,502.90. The NSE's 50-share index Nifty slipped 184.20 points or 0.80% to close at 22,704.70.Read more :- PAKISTAN: Cotton Ginning Season Begins in Punjab and Sindh Amid Farmer Concerns
| title | Created At | Action |
|---|---|---|
| Fluctuations in container freight rates of Indian exports | 05-06-2024 22:22:37 | view |
| Local Spinners Losing Yarn Market to Import Surge | 05-06-2024 18:37:28 | view |
| Rupee gains 7 paise to 83.44 against US dollar in early trade | 05-06-2024 17:48:41 | view |
| This evening, the rupee closed at Rs 83.53 against the dollar, down 39 paise. | 04-06-2024 23:26:33 | view |
| El Niño ending; 60% chance of La Niña developing during July-September: WMO | 04-06-2024 00:39:30 | view |
| The rupee strengthened by 32 paise to close at 83.14 against the US dollar this evening. | 03-06-2024 23:43:33 | view |
| Farmers Struggle to Dry Harvested Cotton, Fear Price Drop | 03-06-2024 19:26:19 | view |
| Cotton Sowing Hits Record Low in Punjab, Lagging Far Behind Target | 03-06-2024 19:03:46 | view |
| Rupee surges 42 paise to 83.00 against US dollar in early trade | 03-06-2024 17:20:32 | view |
| The rupee closed 14 paise lower at 83.46 against the US dollar this evening. | 31-05-2024 23:39:21 | view |
| Indian Cotton Farmers Face Labor Challenges | 31-05-2024 18:42:48 | view |
| Rupee rises 5 paise to 83.24 against US dollar in early trade | 31-05-2024 17:22:54 | view |
| The rupee strengthened by 3 paise to close at 83.32 against the US dollar this evening. | 30-05-2024 23:28:09 | view |
| PAKISTAN: Punjab Misses Cotton Sowing Target | 30-05-2024 18:17:19 | view |
| Rupee falls 2 paise to 83.42 against US dollar in early trade | 30-05-2024 17:33:10 | view |
| The rupee declined by 17 paise to close at 83.35 against the US dollar this evening. | 29-05-2024 23:45:05 | view |
