The rupee appreciated 7 paise against the dollar this evening, closing at Rs 83.47.At the end of trading, BSE Sensex closed at 73,088.33, up 599.34 points or 0.83%. Whereas NSE's 50-share index Nifty closed at 22,147.00, up 151.15 points or 0.69%.Read more :- Outlook for Cotton Spinners Set to Improve Amid Softening Cotton Prices
In early trade, the rupee drops 6 paise to 83.58 against the US dollar.The rupee depreciated 6 paise to 83.58 against the US dollar in early trade on Friday, weighed down by a negative trend in domestic equities and elevated crude oil prices.Sensex, Nifty extend losses to 5th day as Israel's fresh 'attack' on Iran spooks investorsIndian benchmark indices, Sensex and Nifty, opened significantly lower, tracking Asian markets amidst escalating geopolitical tensions in the Middle East. The BSE Sensex fell 583.09 points to 71,905.91, and the NSE Nifty declined 181.35 points to 21,814.50 in early trade.Read More :> Outlook for Cotton Spinners Set to Improve Amid Softening Cotton Prices
Rupee steady to close at 83.54 against US dollarSensex ends down 450pts, Nifty at 21,995Sensex, which had opened higher at 73,183.10, climbed to an intraday high of 73,473.05. But unable to keep the momentum going, the 30-stock benchmark index shed its gains to touch a low of 72,365.67 in the later hours of the trading session. At close, the BSE Sensex had shed 454.25 points, or 0.62%, to close at 72,488.99.
Amidst declining cotton prices, the outlook for cotton spinners is expected to improve.Market DynamicsRecent developments in the global cotton market have indicated a decrease in cotton futures, primarily driven by a reduced uptake from major consumer countries like China. This downturn in demand has prompted multinational traders to reduce their stockpiles, subsequently lowering domestic cotton prices by approximately 8-9% from their recent peak levels.Impact on Domestic Cotton SpinnersDomestic cotton spinners, who have faced challenging quarters marked by low yarn sales and elevated cotton prices impacting their profitability, are now seeing a silver lining. With cotton prices declining, these spinners are poised for a potential turnaround in their financial performance. The easing of cotton prices is particularly timely, coinciding with a recovery in demand for readymade garments and home textiles both locally and in export markets.Industry ProjectionsAccording to a Crisil Research analysis of 95 cotton yarn spinners, which represent 35-40% of industry revenue, it is forecasted that yarn volumes could witness a growth of 4-6% year-over-year in FY2025. This growth is anticipated due to increased capacity utilization and sustained demand, suggesting a promising horizon for the industry.Profitability and Margin ImprovementThe softening of cotton prices is expected to enhance yarn mills' profit margins significantly. Crisil’s report highlights an improvement in cotton yarn spreads to Rs 90-92 per kg in the current fiscal year, up from Rs 87 per kg in the previous year. This improvement is attributed to better domestic cotton availability and continued demand growth in downstream sectors.For the current fiscal year, analysts are optimistic, predicting an increase in operating margins by 150-200 basis points after a period of historically low margins ranging from 8.5-9% last fiscal.Future ConsiderationsWhile the outlook appears favorable, cotton spinners and market analysts must remain vigilant. Any further downturn in demand from downstream industries like readymade garments, or unfavorable shifts in cotton prices relative to international markets, could pose risks to the anticipated recovery. Moreover, an increase in cotton market arrivals could further boost profitability, making it a key factor to watch in the coming months.In conclusion, the recent developments in cotton prices and market demand have set the stage for a potential resurgence in profitability for domestic cotton spinners, though the industry must navigate remaining uncertainties and market dynamics carefully.Read More :> CRISIL Forecasts Improved Operating Margins for Cotton Yarn Spinners
In early trade, the rupee climbs 12 paise to 83.49 against the US dollar.The rupee rebounded from its all-time low levels and appreciated 12 paise to 83.49 against the US dollar in early trade on Thursday, supported by a firm trend in domestic equities and tracking gains in Asian currencies.Sensex up 140pts, Nifty at22,21Sensex was up 129.65 points, or 0.18%, at 73,073.33, and Nifty was up 61.40 points, or 0.28%, at 22,209.30.Read More :> Adverse Economic Policies Force Closure of Rajapalayam Spinning Mills, Leaving Hundreds Jobless
Unfavorable Economic Policies Cause Rajapalayam Spinning Mills to Close, Creating Hundreds of Jobs LossesA string of unfavorable economic policies enforced by the Central government has led to the closure of several spinning mills in and around Rajapalayam, leaving hundreds unemployed, according to B. Mariappan, a functionary of the Communist Party of India (Marxist).Mariappan attributes the closures to various factors, including volatile cotton prices, the influx of cheap imported garments, and the failure of the Cotton Corporation of India (CCI) to stabilize cotton prices. He criticizes the CCI for selling cotton to corporates, resulting in hoarding and price hikes, thus defeating the purpose of the organization.The textile industry in the Rajapalayam region, which comprises 110 spinning mills and employs approximately one lakh workers directly and indirectly, has been severely impacted by these policies. High volatility in cotton prices, compounded by the imposition of GST exclusively on cotton, has further hampered the industry's competitiveness.Mariappan points out the irony of allowing imports of cheaper garments while domestic textile producers struggle. He suggests that imposing anti-dumping duties and reducing tariffs on electricity could alleviate some of the industry's burdens.G. Ganesan, district president of the Spinning Mills Workers Union affiliated with CITU, highlights the reduced operational days of some mills due to decreased demand, noting that many are barely operating to avoid loan defaults.Mariappan advocates for policy changes, including zero input tax on cotton and lower interest rates on bank loans, to support struggling mills. He laments the economic fallout, with many former mill workers now seeking employment in the construction and agricultural sectors, while those who borrowed from self-help groups face challenges in repaying loans on time.Read More :> CRISIL Forecasts Improved Operating Margins for Cotton Yarn Spinners
Better Operating Margins for Cotton Yarn Spinners are Predicted by CRISILCRISIL Ratings anticipates a significant uplift for the cotton yarn spinning industry this fiscal year, with operating margins poised to improve by 150-200 basis points (bps) following last fiscal's decade-low margins of 8.5-9 percent. The forecast, outlined in a recent report, attributes the improvement to stabilized cotton prices and enhanced cotton yarn spreads.The report cites stable cotton prices, bolstered by improved availability during the current cotton season, as a key factor supporting margin recovery. Additionally, it predicts a 4-6 percent increase in revenue driven by moderate growth in downstream demand alongside stable yarn prices. Last fiscal saw a decline in revenue due to a substantial reduction in yarn prices.CRISIL's analysis, encompassing 95 cotton yarn spinners responsible for 35-40 percent of industry revenue, indicates an overall enhancement in credit profiles due to better operating performance and restrained capital expenditure on deleveraged balance sheets.Gautam Shahi, Director at CRISIL Ratings Ltd., emphasizes the positive impact of improved domestic cotton availability on yarn spreads, expecting a recovery to Rs 90-92 per kg this fiscal from approximately Rs 87 per kg last fiscal. He anticipates a recovery in operating margins to 10.5-11 percent, buoyed by benign cotton prices and sustained domestic demand.While yarn prices are projected to remain steady, domestic sales volume, constituting 70-75 percent of industry revenue, is set to grow by 4-6 percent driven by demand from key segments like readymade garments and home textiles. Conversely, exports are expected to grow modestly at 3-4 percent due to sluggish global economic conditions, following an 80-85 percent surge last fiscal.CRISIL underscores the industry's improving capacity utilization levels, reaching 80-85 percent, with further improvement anticipated this fiscal. Moderate capex plans are forecasted for cotton yarn spinners, contributing to improved interest coverage ratios and gearing ratios.CRISIL identifies downstream demand slowdowns and fluctuations in domestic cotton prices compared to international prices as key monitorables for the industry's performance in the near term.Read More :> Cotton Prices Governed by Global Market, Not Domestic Policy: CM Shinde
Global Market, Not Domestic Policy, Determines Cotton Prices: CM ShindeThe Chief Minister, Eknath Shinde, emphasized that cotton prices are determined by the international market, dismissing any claims that farmers are being disadvantaged due to local policies. He specifically addressed criticism from Uddhav Thackeray, leader of the Shiv Sena, labeling him as an "egoistic king" who is out of touch with reality.Shinde highlighted that during the previous government's tenure led by Thackeray, farmers received good prices for cotton due to demand in the international market. However, he noted that the current price of cotton is significantly lower, attributing it to fluctuations in the NASDAQ market in the US.Regarding orange crops, Shinde mentioned challenges in exporting to Bangladesh due to increased import duties. However, he assured that the government is committed to providing relief to farmers once the model code of conduct is lifted.Shinde also touted the government's efforts to assist farmers during unseasonal rains, mentioning modifications to the norms set by the National Disaster Response Force (NDRF) to maximize benefits for farmers.In terms of infrastructure development, Shinde claimed that stalled projects, including railway projects, have been restarted under their administration. He also credited the central government for providing Vande Bharat trains to the state.Turning his attention back to Uddhav Thackeray, Shinde criticized him for his perceived lack of direct engagement with the public and reliance on social media platforms like Facebook Live. He echoed sentiments expressed by Prime Minister Narendra Modi, suggesting that the Shiv Sena under Thackeray's leadership is not true to its principles.Read More :> India Set to Experience Above-Average Monsoon Rains in 2024: IMD
The rupee fell 9 paise versus the dollar to close at Rs 83.54 Thursday evening.At the close of trade, the BSE Sensex closed down 456.10 points or 0.62% at 72,943.68. At the same time, NSE's 50-share index Nifty closed down 124.60 points or 0.56% at 22,147.90.Read more :- India Set to Experience Above-Average Monsoon Rains in 2024: IMD
In early trade, the rupee drops nine paise to 83.53 against the US dollarThe Rupee depreciated nine paise to 83.53 against the U.S. dollar in early trade on April 16, weighed down by a strong American currency and elevated crude oil prices.Sensex fell by more than 300 points, Nifty also fell by almost 100 points.The stock market is witnessing a decline for the second consecutive day. As soon as the market opened, the Sensex fell by 507 points.Now the market has recovered and the Sensex is trading at the level of 73,400 with a fall of 300 points. There is also a decline of about 100 points in Nifty, it is trading at the level of 22,200.Read More :> India Set to Experience Above-Average Monsoon Rains in 2024: IMD
The rupee fell 4 paise versus the dollar this evening, closing at Rs 83.45.At the end of trading, BSE Sensex closed at 73,399.78, down 845.12 points or 1.14%. NSE's 50-share index Nifty fell 241.55 points or 1.07% and closed at 22,277.85.Read more : - Challenges in Punjab's Kharif Crop
IMD: India to See Above-Average Monsoon Rainfall in 2024India is likely to receive above average monsoon rains in 2024, the government said on April 15, a big boost for the country that depends heavily on the summer rains for its farm production.The monsoon, which usually arrives over the southern tip of Kerala state around June 1 and retreats in mid-September, is expected to total 106% of the long-term average this year, said M Ravichandran, secretary in the Ministry of Earth Sciences.The IMD defines average or normal rainfall as ranging between 96% and 104% of a 50-year average of 87 cm (35 inches) for the four-month season.Read More :> Challenges in Punjab's Kharif Crop
Problems with the Kharif Crop in PunjabThe challenges faced by Punjab in diversifying its kharif crops, particularly in shifting farmers towards cotton cultivation, are quite apparent. The decline in cotton acreage over the years due to various factors like pest attacks, lack of irrigation facilities, and adverse weather conditions poses a significant hurdle for agricultural authorities.The target set by the agriculture department to cover 2 lakh hectares under cotton for the 2024-25 kharif cycle reflects their determination to revive cotton cultivation in the region. However, the downward trend in cotton acreage in recent years, as indicated by the data, showcases the magnitude of the challenge.Efforts to encourage farmers to adopt maize cultivation as an alternative to cotton indicate a proactive approach by the authorities to address the issue. Measures such as subsidies on seeds and banning the cultivation of certain crops in cotton-growing areas demonstrate the government's commitment to supporting farmers and mitigating risks associated with cotton farming.The shelving of the subsidy proposal on Specialised Pheromone and Lure Application Technology (SPLAT) due to cost concerns is a setback, as it could have been instrumental in combating pink bollworm infestation and rebuilding confidence among cotton growers. However, the assurance of encouraging farmers to use SPLAT and PBKnot despite the subsidy setback reflects a continued effort to find solutions and support cotton cultivation.Overall, while Punjab faces significant challenges in diversifying its kharif crops, the concerted efforts of the agriculture department and the government indicate a commitment to addressing these challenges and revitalizing cotton cultivation in the region.Read More :>Multinational Traders in India Offload Cotton Stocks Amid Global Price Decline and Weakening Demand
In early trade, the rupee drops 6 paise to 83.44 against the US dollar. At the interbank foreign exchange, the rupee opened at 83.46 against the dollar and gained slightly to 83.44 in the initial trade, registering a fall of 6 paise over its previous close.The rupee declined 6 paise to 83.44 against the US dollar in early trade on Monday, tracking negative equity markets and with drawal of foreign funds amid renewed concerns over geopolitical tensions in the Middle East.Sensex tanks over 900 points on concerns over Middle East conflict, weak global trends Extending its previous day's decline, the 30-share BSE Sensex tanked 929.74 points to 73,315.16. The NSE Nifty declined 216.9 points to 22,302.50. PTIRead More :>Experts Urge Farmers to Shift Back to Cotton Cultivation to Address Declining Crop Area
The rupee fell 22 paise vs the dollar to close at Rs 83.41 this evening.At the end of trading, BSE Sensex closed at 74,244.90, down 793.25 points or 1.06%. Whereas NSE's 50-share index NiftyIt fell 238.10 points or 1.05% to 22,515.70.Read more : - Experts Urge Farmers to Shift Back to Cotton Cultivation to Address Declining Crop Area
Professionals Encourage Farmers to Return to Growing Cotton in Order to Address Declining Crop AreaPunjab Agricultural University (PAU) and the state agriculture department are expressing concern over the gradual decrease in the area dedicated to cotton cultivation. To address this issue, they are urging field officers to engage with farmers and encourage them to return to cotton farming.The initiative involves organizing farmer awareness camps and small meetings where farmers will be advised to opt for "PAU recommended varieties" of cotton seeds and avoid using substandard ones. The target is set to ensure that cotton is sown in at least 2 lakh hectares during the 2024-25 season, after it declined from 2 lakh hectares to 1.72 lakh hectares in the previous year.Experts suggest that cotton is a more sustainable alternative to water-intensive crops like paddy, aiming to discourage farmers from sticking solely to paddy cultivation.In a meeting of the interstate monitoring committee held in Bathinda, PAU Vice Chancellor Satbir Singh Gosal and Punjab Agriculture Department Director Jaswant Singh, along with officials from Haryana and Rajasthan, discussed strategies to safeguard the upcoming cotton sowing season from pest attacks.The optimal time for cotton sowing is considered to be from late April to May 15. Gosal and Singh emphasized the need for a strategy to promote cotton cultivation, focusing on recommended varieties. Canal water will be made available to farmers starting April 15 to support this initiative.Farmers will also receive guidance on proper spray techniques and other farming practices to prevent pest attacks. It's emphasized that leftover cotton sticks after harvesting need to be removed from fields before sowing.The decline in cotton cultivation area is viewed as a significant concern for Punjab, and timely advisories are seen as crucial to retaining farmers' interest in cotton cultivation.Additionally, scientists from Haryana and Rajasthan shared strategies from their respective states, contributing to the collective effort to revitalize cotton farming in the region.Read More :> Multinational Traders in India Offload Cotton Stocks Amid Global Price Decline and Weakening Demand
| title | Created At | Action |
|---|---|---|
| This evening, the rupee strengthened by 7 paise and closed at Rs 83.47 against the dollar. | 19-04-2024 23:42:08 | view |
| Rupee falls 6 paise to 83.58 against US dollar in early trade | 19-04-2024 17:41:07 | view |
| Rupee steady to close at 83.54 against US dollar | 18-04-2024 23:49:25 | view |
| Outlook for Cotton Spinners Set to Improve Amid Softening Cotton Prices | 18-04-2024 18:19:19 | view |
| Rupee rises 12 paise to 83.49 against US dollar in early trade | 18-04-2024 17:47:50 | view |
| Adverse Economic Policies Force Closure of Rajapalayam Spinning Mills, Leaving Hundreds Jobless | 17-04-2024 22:27:22 | view |
| CRISIL Forecasts Improved Operating Margins for Cotton Yarn Spinners | 17-04-2024 22:03:49 | view |
| Cotton Prices Governed by Global Market, Not Domestic Policy: CM Shinde | 17-04-2024 17:55:36 | view |
| The rupee closed at Rs 83.54 this evening with a weakness of 9 paise against the dollar. | 16-04-2024 23:41:14 | view |
| Rupee falls nine paise to 83.53 against U.S. dollar in early trade | 16-04-2024 17:48:08 | view |
| This evening, the rupee closed at Rs 83.45 against the dollar with a weakness of 4 paise. | 15-04-2024 23:46:47 | view |
| India Set to Experience Above-Average Monsoon Rains in 2024: IMD | 15-04-2024 22:32:21 | view |
| Challenges in Punjab's Kharif Crop | 15-04-2024 19:11:31 | view |
| Rupee falls 6 paise to 83.44 against US dollar in early trade | 15-04-2024 17:35:11 | view |
| This evening, the rupee closed at Rs 83.41 with a weakness of 22 paise against the dollar. | 12-04-2024 23:57:53 | view |
| Experts Urge Farmers to Shift Back to Cotton Cultivation to Address Declining Crop Area | 11-04-2024 19:02:06 | view |
