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Cotton Acreage Shrinks in North India; Farmers Shift Towards PaddyCotton cultivation acreage in North India has declined by approximately 22 percent during the current Kharif season. Experts attribute this shift to farmers' growing preference for paddy cultivation, driven by the assurance of government procurement and the potential for better returns.According to data from the Ministry of Agriculture, cotton sowing in Punjab, Haryana, and Rajasthan covered approximately 9 lakh hectares this year, down from 11.56 lakh hectares last year. By June 12, the total cotton acreage nationwide stood at 9.53 lakh hectares, compared to 13.19 lakh hectares a year earlier; however, sowing operations are still underway in parts of Gujarat, Karnataka, and Rajasthan.A state-wise breakdown reveals that cotton acreage in Punjab has dropped from 1.19 lakh hectares to 0.80 lakh hectares. In Haryana, it fell from 3.94 lakh hectares to 2.92 lakh hectares, and in Rajasthan, it decreased from 6.43 lakh hectares to 5.28 lakh hectares. Nevertheless, Atul Ganatra, Chairman of the Crop Committee at the Cotton Association of India (CAI), believes that favorable rainfall in certain parts of Rajasthan could stabilize cotton acreage or even lead to a 3–4 percent increase.Experts observe that cotton farming is becoming increasingly risky for farmers. Bhagirath Choudhary, Founder-Director of the South Asia Biotechnology Centre, notes that the rising menace of the pink bollworm, weather uncertainties, and market prices consistently remaining below the Minimum Support Price (MSP) are eroding farmers' confidence. Conversely, the guaranteed procurement and prospect of higher profits associated with paddy cultivation are attracting farmers.According to Dilip Monga, former head of the Central Institute for Cotton Research, cotton acreage in North India has been steadily declining for several years. Adverse weather conditions, pest pressure, and the superior economic returns offered by other crops are driving farmers away from cotton cultivation. This is the reason why paddy has gained an edge over cotton this season as well.read more :- Rupee Opens 16 Paise Lower at 94.69 Against US Dollar

Rajasthan - Raisinghnagar (Muklawa): Rain breathes new life into Narma crop; greenery returns to the fieldsRecent rainfall in the Muklawa area of Raisingh-nagar and surrounding villages has revitalized the  Narma (cotton) crop. The crop, which had been struggling due to prolonged intense heat and a lack of moisture, has received significant relief from the rain, bringing a look of satisfaction to the farmers' faces.The rainfall has ensured adequate soil moisture, yielding a positive impact on the Narma crop. The plants in the fields appear much greener and healthier than before. New leaf growth is visible in many places, signaling an improvement in the crop's development.These days, Narma fields across rural areas are lush and green. The freshness infused into the crop by the rain has transformed the landscape of the fields and sparked hopes of a better yield among farmers. Agricultural experts believe that if the weather remains favorable and the crop receives necessary moisture at regular intervals, its growth could improve even further.Farmers state that the rain has breathed new life into the crop. While the crop's condition had become worrying due to drought-like conditions, a clear improvement in the plants is now evident. The return of greenery to the Narma fields is being viewed as a positive sign for the region's agricultural landscape.read more :- Rupee Opens 16 Paise Lower at 94.69 Against US Dollar

The rupee opened 16 paise lower at 94.69 against the USD.On Thursday, the Indian rupee opened 16 paise lower against the dollar at 94.69, whereas it had closed at 94.53 on Wednesday.READ MORE :- Farmers Shift to Cotton as Sowing Gains Momentum in Beawar

Farmers Shift Towards Cotton as a Cash Crop; Sowing Picks Up Pace in the DistrictFarmers in Beawar district are increasingly turning towards cotton cultivation this year. Anticipating the monsoon and favorable weather conditions, they have commenced sowing operations. The Agriculture Department has set a target to sow cotton across 3,000 hectares in the district during the current Kharif season. Departmental data indicates that sowing has already been completed on approximately 1,950 hectares, showing rapid progress toward the target.The area under cotton cultivation is steadily expanding across various parts of the district. Farmers in the rural areas surrounding Jaitaran, Bijaynagar, and Beawar are adopting cotton farming in large numbers. The scope of cotton sowing has also widened in the Babra, Sarmaliya, Sargaon, and Pisangan route areas. Agricultural experts believe that as the monsoon becomes active in the coming days, the sowing area will expand further, enabling the department to easily meet its set target.According to agricultural experts, cotton is a major cash crop for farmers. It offers the potential for better economic returns compared to other crops. Once the crop is ready, farmers often secure relatively good market prices, and the payment process is generally smooth. This is why farmers have increasingly gravitated towards cotton production over the past few years.The climate of Beawar and the surrounding semi-arid regions is considered favorable for cotton production. Cotton sowing begins earlier than that of many other Kharif crops. Moreover, cotton is not limited to fiber production alone; its seeds are used to produce oil and oil cake. Cotton oil cake is in high demand within the animal husbandry sector, providing farmers with opportunities for additional income.Data from the Beawar Agricultural Produce Market also reflects the growing popularity of cotton in the region. Cotton arrivals at the market were recorded at 9,582 quintals in 2025, rising to 28,317 quintals in 2026. This increase reflects growing interest among farmers and an expansion in production capacity.According to Dinesh Kumar, Assistant Director of the Agriculture Department in Beawar, a target has been set to sow cotton across 3,000 hectares in the district; given current progress, this target is expected to be met soon. If weather conditions remain favorable and adequate rainfall occurs on time, cotton production in the district is also likely to be strong this season.READ MORE :- Tamil Nadu OE Mills Warn of 50% Production Cut Amid Cotton Waste Price Surge

Tamil Nadu’s OE Spinning Mills Warn of 50% Production Cut Due to High Cotton Waste PricesMore than 250 Open-End (OE) spinning mills in Tamil Nadu have warned that they will be forced to cut production by up to 50 percent starting next week unless there is a prompt and substantial reduction in cotton waste prices. This announcement was made by the Open-End Spinning Mills Association (OSMA). The industry states that rising raw material costs have severely impacted the financial health of the mills, making it increasingly difficult to sustain production under current conditions.According to OSMA President G. Arulmozhi, there has been an unusual surge in the prices of cotton waste—specifically 'comber noil'—over the past few months. Comber noil is the primary raw material used by OE spinning mills. Open-end spinning technology produces yarn without spindles and relies heavily on cotton waste. While the continuous rise in prices has driven up production costs, the prices of the finished yarn have not increased proportionately.The association noted that cotton prices dropped significantly after the Central Government removed the 11 percent import duty on cotton on May 31. Cotton prices fell from approximately ₹195 per kilogram to ₹172 per kilogram—a reduction of about ₹23 per kilogram. Despite this, the price of comber noil has dropped by only ₹10 to ₹15 per kilogram. The industry believes this reduction is insufficient and argues that cotton waste prices should decrease in line with cotton prices.OSMA stated that if prices are not reduced further within this week, all grey yarn OE mills in Tamil Nadu will collectively halve their production starting next week. This decision will impact not only 250 grey yarn mills but also approximately 350 other OE (Open-End) mills that utilize pre-consumer garment waste and recycled PET fiber.The grey yarn produced in these mills is used in major textile hubs such as Karur, Somanur, Palladam, Avinashi, and Erode to manufacture products like towels, lungis, jeans, T-shirts, socks, bedspreads, and other affordable textile items. The association has urged both the state and central governments to intervene and find a permanent solution to the volatility in cotton waste prices.READ MORE :- Gujarat Cotton Sowing Reaches 2.39 Lakh Hectares by June 15, Surpasses Last Year’s Pace

Cotton Sowing in Gujarat Reaches 2.39 Lakh Hectares by June 15; Progress Better Than Last YearCotton sowing has gained significant momentum in Gujarat during the Kharif 2026 season. By June 15, sowing had been completed across 2.39 lakh hectares, compared to 1.88 lakh hectares during the same period last year, marking a notable year-on-year increase.Cotton has covered approximately 10.05 percent of its normal sowing area in the state, making it the fastest-progressing major crop of the Kharif season. In comparison, groundnut sowing has reached 1.37 lakh hectares, representing 7.13 percent of its normal area.Meanwhile, soybean sowing is still in its initial stages. By June 15, only 448 hectares had been sown with soybean—merely 0.16 percent of its normal area. These figures indicate that farmers are currently prioritizing traditional Kharif crops like cotton and groundnut.The sowing data clearly shows that cotton progress in Gujarat this year has been far more rapid than that of groundnut or soybean. Early-season sowing activities, particularly in the Saurashtra region, have played a crucial role in expanding the area under cotton cultivation.However, experts believe that despite the promising start, the crops' future growth will depend on regular and adequate monsoon rainfall. If rainfall does not reach normal levels in the coming days, early-sown crops could face moisture stress, potentially impacting yields. For now, the available data suggests that cotton farmers in Gujarat have commenced the Kharif 2026 season with greater enthusiasm and pace compared to the previous year.READC MORE :- Delayed Monsoon Raises Crop Risk in Gujarat; Farmer Compensation Crosses ₹22,700 Crore

Cotton Yarn Industry Margins Expected to Improve by 150-200 Basis Points Following Strong Q4 Recovery: CareEdge RatingsAfter facing headwinds for nearly three years, the Indian cotton yarn industry has recorded a significant recovery in the fourth quarter of the 2026 fiscal year (Q4 FY26). According to a recent report by CareEdge Ratings, the industry's operating profitability margins are likely to improve by 150 to 200 basis points in FY27, driven by favorable demand-supply dynamics and improved pricing.The report attributes this recovery to several positive factors. These include a reduction in uncertainties regarding US tariffs, rising orders from garment and home textile exporters, a revival in demand from China, and an improved business environment surrounding potential Free Trade Agreements (FTAs) between India and the UK, as well as India and the European Union (EU).CareEdge Ratings stated that the balance between demand and supply, along with a favorable pricing environment, is expected to persist into FY27. However, the outlook beyond that period will depend on demand from China, fluctuations in cotton prices, geopolitical developments, and the pace of recovery in downstream consumption globally.The report also highlights significant structural changes on the supply side of the industry. Over the past few years, capacity amounting to approximately 10–12 million spindles has exited the market, reducing the effective capacity to around 40–44 million spindles. This has improved the demand-supply balance for organized players and made pricing more sustainable.Cotton yarn spreads have also witnessed a significant increase due to improved demand, limited supply, and stable cotton prices. The spread, which stood at approximately ₹95–100 per kg in FY26, has risen to ₹120–125 per kg. According to the report, the removal of import duty on cotton until October 31, 2026, will help maintain a balance between domestic and global prices, potentially sustaining favorable conditions for spreads into the 2027 fiscal year.CareEdge Ratings projects that the revenue of the Indian spinning industry will grow by approximately 10 percent year-on-year in the 2027 fiscal year. Of this, 3 to 4 percent of the growth is expected to stem from production or volume expansion, while the remainder is likely to be driven by improved sales realizations.READ MORE :- Delayed Monsoon Raises Crop Risk in Gujarat; Farmer Compensation Crosses ₹22,700 Crore

Delayed Monsoon Increases Agricultural Risk in Gujarat; Crop Loss Compensation Exceeds ₹22,700 Crore Over a DecadeA weak start to the monsoon in Gujarat has heightened concerns among farmers. By June 16, the state recorded rainfall 83 percent below normal, with the deficit reaching 100 percent in nine districts of the Saurashtra region. This situation indicates that the monsoon's arrival in the state has not only been delayed but has also been uneven and weak. Consequently, there are growing fears of an adverse impact on the sowing and early growth stages of Kharif crops.Despite the rainfall deficit, farmers have commenced sowing operations. So far, Kharif crops have been sown across approximately 4.27 lakh hectares, representing about 5 percent of the normal Kharif acreage. Cotton and groundnut are the primary crops; farmers have sown cotton on roughly 2.39 lakh hectares and groundnut on 1.36 lakh hectares. However, if adequate rainfall does not occur in the coming days, these early crops could face moisture stress, potentially affecting both germination and overall yield.The current situation is part of a broader pattern of increasing climate uncertainty in the state. According to government data, the Gujarat government has distributed a total of ₹22,733 crore in compensation to farmers for crop losses between the 2016 and 2026 fiscal years. This amount was disbursed to offset losses caused by unseasonal rain, excessive rainfall, cyclonic storms, and other weather-related disasters.A significant rise in relief payouts has been observed over the decade. Compensation stood at just ₹279 crore in the 2016 fiscal year, rising to ₹2,906 crore by the 2021 fiscal year. By the 2026 fiscal year, the figure had surged to a record ₹10,337 crore. Approximately 46 percent of the total relief amount was disbursed in the 2026 fiscal year alone, highlighting the severity of weather-related losses in recent years.Over the past decade, around 1.36 crore farmers have received assistance for crop losses; this figure includes many farmers who received relief on more than one occasion across different years. Of the total relief amount, ₹15,829 crore was provided through the SDRF, while ₹6,904 crore came from the state government's budget. These figures clearly indicate that climate risks are becoming an increasingly significant challenge for the agricultural sector, thereby intensifying the economic burden on both farmers and the state.READ MORE :- Rupee Opens 11 Paise Higher at 94.45 Against US Dollar

The rupee opened 11 paise higher at 94.45 against the USD.On Wednesday, the Indian rupee opened 11 paise higher against the dollar at 94.45, whereas it had closed at 94.56 on Tuesday.READ MORE :- Cotton and Soybean Sowing Falls Behind Last Year Despite Higher MSP; Monsoon Key Concern

India's Cotton and Soybean Sowing Lags Despite Higher MSP; Monsoon Emerges as Key Risk FactorIndia's kharif sowing season has started on a subdued note for both cotton and soybean, with acreage trailing last year's pace despite the Centre announcing higher Minimum Support Prices (MSP) for the 2026-27 season. According to the latest data released by the Ministry of Agriculture, cotton has been sown across 9.53 lakh hectares as of June 12, compared with 13.19 lakh hectares during the same period last year, a decline of 3.66 lakh hectares. Soybean sowing stands at **0.70 lakh hectares, down by **0.20 lakh hectares from 0.90 lakh hectares a year ago.The slower planting pace comes even after the government increased the MSP for cotton by ₹557 per quintal and soybean by ₹380 per quintal, a move aimed at encouraging acreage expansion and supporting farmer returns. However, the higher MSP has so far failed to translate into increased sowing, highlighting the dominant influence of weather conditions over crop economics during the early kharif season.Market participants attribute the decline primarily to inadequate and uneven rainfall across major producing states, including Maharashtra, Madhya Pradesh, Gujarat, Telangana and Rajasthan. In several districts, farmers are delaying sowing operations until they receive sufficient and sustained monsoon showers to ensure proper germination and crop establishment.The coming two to three weeks are likely to be critical for both crops. While acreage gaps can still be recovered as peak sowing season extends through June and early July, any prolonged weakness in monsoon activity could begin affecting not only sowing progress but also yield potential and overall production prospects. Traders and industry experts will closely monitor rainfall distribution, reservoir levels and weekly sowing updates, as weather remains the single most important factor determining the outlook for India's 2026-27 cotton and soybean crops.READ MORE :- The rupee appreciated by 7 paise against the dollar to close at 94.56.

After opening at 94.63 in Tuesday's morning trade, the Indian rupee gained 7 paise against the US dollar to close at 94.56.At the close, the Sensex was up 544.15 points (0.71%) at 76,808.48, and the Nifty rose 135.25 points (0.57%) to 23,989.15. Approximately 2,275 shares advanced, 1,795 shares declined, and 151 shares remained unchanged.READ MORE :- India's Cotton Carry-Forward Stock Seen Rising 42% on Higher Duty-Free Imports