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In early trade, the rupee advances 1 paisa to 83.60 against the US dollar. The Indian rupee declined to a record low against the US dollar on Thursday weighed down by broader strength in the greenback amid demand from local importers.Rupee fell to its all-time low of 83.62 against the US dollar. The local currency had closed at 83.4550 in the previous sessionREAD MORE :> India's monsoon advances, set to bring relief from heatwave

India's monsoon is expected to relieve the heatwave.India's monsoon is advancing after stalling for more than a week and rains are set to cover central parts of the country in the next few days, bringing relief from the heatwave in the grain-growing northern plains, two senior weather officials said.Summer rains, critical for economic growth in Asia's third-largest economy, usually begin in the south around June 1 before spreading nationwide by July 8, allowing farmers to plant crops such as rice, cotton, soybeans, and sugarcane."Monsoon is reviving. It was stuck after covering most of Maharashtra, but by the weekend, it will enter Madhya Pradesh," an official of the India Meteorological Department (IMD) told Reuters."Western and southern regions will receive heavy rains from the next week. Central parts would also start getting rains," added the official, who spoke on condition of anonymity because they were not authorised to speak to the media.The monsoon arrived nearly two days ahead of schedule in the western state of Maharashtra, home to the commercial capital of Mumbai, but its progress in central and eastern states of the country stalled for nearly a week.The lifeblood of the nearly $3.5-trillion economy, the monsoon brings nearly 70% of the rain India needs to water farms and refill reservoirs and aquifers.In the absence of irrigation, nearly half the farmland in the world's second-biggest producer of rice, wheat and sugar depends on the annual rains that usually run from June to September.The monsoon is expected to advance swiftly from next week and bring down temperatures in northern India, another weather official said.The heatwave in northern states will ease by the weekend, he said.The maximum temperature in India's northern states ranges between 42 degrees Celsius and 46 degrees C (108 degrees Fahrenheit to 115 degrees F) this week, which is nearly 3 degrees C to 5 degrees C above normal, the IMD data showed.India has received 18% less rainfall than normal since the season began on June 1, the IMD says.Read more :- Telangana Cotton Farmers Await Crucial Showers

This evening, the rupee ended the day 19 paise weaker against the US dollar, at 83.65.At the close of trading, the BSE Sensex rose 141.34 points or 0.18% to close at 77,478.93. The NSE's 50-share index Nifty rose 51 points or 0.22% to close at 23,567.00.Read more :-Monsoon at a Standstill Since June 12, Stalled Movement Delays Kharif Crop Sowing

Cotton Growers in Telangana Anticipate Vital ShowersCotton farmers in Telangana are anxiously awaiting fresh showers to save their crops, even as the State government expects cotton acreage to reach 28.30 lakh hectares this year.Although rains have arrived, they have been unevenly distributed, impacting crop survival. Farmers have engaged in large-scale sowing, but only about 70% of seeds have survived, with some farmers resorting to irrigation for support.Despite receiving 85.3 mm of rainfall against a normal of 78.5 mm, 11 out of 32 districts reported deficit rainfall. As of June 19, cotton has been sown on 6.31 lakh hectares and paddy on 11,000 hectares.Agricultural Minister Tummala Nageswara Rao anticipates 70 lakh acres for cotton and 20.23 lakh hectares for paddy. However, excessive focus on these crops may impact horticulture and vegetable production.A senior agricultural scientist noted that sowing is only 70% complete and that further delays in rain could necessitate re-sowing. Paddy farmers are opting for short-duration varieties, allowing for a later sowing window.Read more :- Monsoon at a Standstill Since June 12, Stalled Movement Delays Kharif Crop Sowing

The monsoon season is dead. Stalled Movement Has Been Delaying Kharif Crop Sowing Since June 12 The monsoon, which arrived early in Kerala and the North-East, has been almost at a standstill since June 12, covering roughly 40% of India’s geographical area in the first 14 days. This prolonged pause has exacerbated the heat wave and delayed kharif crop sowing in north and north-west India.Despite this, the India Meteorological Department (IMD) remains optimistic about good rainfall from July to September due to the upcoming La Nina formation, though it has downgraded June rainfall expectations to 'below normal.' La Nina conditions, associated with cooling ocean temperatures, typically bring good monsoon rainfall to India.Climate scientist Madhavan Rajeevan notes that monsoon pauses are common but acknowledges the current one is longer than usual, potentially influenced by intra-seasonal activity and the Madden Julian Oscillation (MJO). He expects the monsoon to revive in the last week of June, projecting an overall normal monsoon.The delay in monsoon impacts farming operations, especially for water-intensive paddy, reducing the gap between kharif harvest and rabi sowing. This may increase stubble burning in north-west India, contributing to air pollution in Delhi-NCR during winter. The agriculture ministry recommends the direct seeded rice (DSR) method to save time, though traditional methods remain prevalent.READ MORE :> Sharper MSP hikes for pulses, oil seeds; paddy support price up just 5.4%

In Kharif 2024, India's Cotton Acreage Reduces as Farmers Switch to Pulses and MaizeFarmers' planting decisions are being influenced by bearish global futures and increasing pest attacks. As a result, cotton acreages across the country for the Kharif 2024 cropping season are expected to decline. Farmers in key producing states like Gujarat and Maharashtra are opting for more lucrative crops such as pulses and maize amidst weakening global cotton prices.The Cotton Association of India (CAI), the apex trade body for the sector, projects a decrease in cotton acreage for the Kharif 2024 season compared to the previous year's 124.69 lakh hectares.In North India, where Kharif planting is nearly complete, cotton acreages have dropped by nearly half. Farmers in states like Punjab and Haryana faced significant crop losses due to rising pest attacks, mainly the pink bollworm, and increasing production costs.According to information from North India members in the recent CAI meeting, cotton sowing in the current Kharif season is reduced by 40 to 60 percent in states such as Rajasthan, Haryana, and Punjab,” said Atul Ganatra, President of CAI.In Gujarat, the largest cotton-producing state, acreages are expected to decline by 12-15 percent this year. Ganatra noted that with parts of Gujarat receiving rains, farmers have already shifted to groundnuts and other crops.In Maharashtra, which has the largest cotton area in the country, the situation mirrors that of Gujarat. “The Maharashtra state association and other trade members expect a 10-15 percent reduction in area,” Ganatra said. Farmers in Maharashtra are shifting from cotton to tur, maize, and soybeans.Feedback from seed distributors indicates slow sales of cotton seeds in the state. “Due to water shortages, not much early cotton sowing is done in Central and South India,” Ganatra added. In Madhya Pradesh, acreages are seen lower by a tenth, while in the South, farmers are waiting for the minimum support price (MSP) to be declared.The bearish trend in ICE Futures is also influencing cotton sowing in India. The ICE cotton futures for December 2024 are trending lower at 70 cents per pound, equivalent to ₹47,000 per candy in Indian rupees. Currently, cotton prices in India are hovering in the ₹55,000-57,000 range for 29 mm.“Lower December ICE futures are not good for the upcoming cotton sowing. The lower futures are affecting cotton sowing as Indian farmers are keenly watching the ICE futures daily before making sowing decisions,” Ganatra added.Cotton was planted on 124.69 lakh hectares during the 2023-24 season, with Maharashtra topping the acreage at 42.34 lakh hectares, followed by Gujarat at 26.83 lakh hectares and Telangana at 18.18 lakh hectares.Read more :- Brazilian Cotton Exports Set to Break Records in June

Higher MSPs for oil seeds and pulses; only a 5.4% increase in the price of paddy supportThe Cabinet on Wednesday approved increases in the minimum support prices (MSP) for 14 crops for the 2024-25 kharif season, with hikes ranging from 1.4% to 12.7%. The support price for paddy, the main summer crop, rose modestly by 5.35% to Rs 2,300/quintal, compared to a 7% increase the previous year.With significant rice stock surpluses, the government aims to encourage farmers, particularly in Punjab and Haryana, to shift towards more profitable pulses and oilseeds. Current central pool rice stocks total 31.98 million tonnes (MT), with the Food Corporation of India (FCI) holding 50.08 MT, well above the buffer requirement.For the 2024-25 season, MSP for moong increased by 1.4% to Rs 8,682/quintal, while tur/arhar rose by 7.9% to Rs 7,550/quintal. Groundnut and soybean saw MSP hikes of 6.4% and 6.3%, reaching Rs 6,783/quintal and Rs 4,892/quintal, respectively.These adjustments are part of ongoing efforts to realign MSPs towards oilseeds, pulses, and coarse cereals to balance supply and demand. Since 2018-19, MSP policy has aimed for at least 50% profits over production costs, with that year seeing hikes from 4.1% to 28.1%.Higher MSPs for pulses and oilseeds are expected to drive agricultural gross value added (GVA) in the latter half of the year, with procurement starting in October. Agri GVA grew by only 1.4% in FY24 due to below-normal monsoon rainfall.According to Information and Broadcasting Minister Ashwini Vaishnaw, the new MSP decisions will provide farmers with Rs 2 trillion, an increase of Rs 35,000 crore from the previous season. However, MSP purchases remain stronger for paddy and wheat than for oilseeds and pulses. India imports 56% of its edible oil needs and 15% of its pulses consumption.For the 2024-25 season, the MSP for medium staple cotton increased by 7.6% to Rs 7,121/quintal, while MSPs for other cereals like maize, bajra, ragi, and jowar rose by 5-11.5%.Expected farmer margins over production costs for 2024-25 are highest for bajra (77%), followed by tur (59%), maize (54%), and urad (52%), with other crops estimated at a 50% margin.READ MORE :> US Cotton Industry Seeks Removal of 11% Import Duty on Short Staple Cotton

In early trade, the rupee drops 1 paisa to 83.45 against the US dollar.Sensex climbs 250.72 points to 77,588.31 in early trade; Nifty up 71.7 points to 23,587.70READ MORE :> Brazilian Cotton Exports Set to Break Records in June

Brazil's June Cotton Exports Are Expected to Break All RecordsBrazilian cotton exports in June are poised to reach record highs, driven by strong international demand and favorable export prices, according to the Centre for Advanced Studies on Applied Economics (CEPEA). Data from the Secretariat of Foreign Trade at the Ministry of Economy (SECEX/ME) indicates that Brazil has already exported 50.34 thousand tons of cotton in the first five working days of June. This figure is nearing the total exports for the entire month of June 2023, which was 60.3 thousand tons.The daily export average has surged to 10.07 thousand tons, a significant increase from the 2.87 thousand tons per day recorded in June last year, marking a rise of 250.5 percent. If this export rate continues, June's total cotton exports are projected to reach 200 thousand tons, setting a new record for the month, CEPEA reported in its latest fortnightly update on the Brazilian cotton market.From August 2023 to mid-June 2024, Brazil has shipped 2.4 million tons of cotton, reflecting a 65.8 percent increase compared to the same period in the previous season, which saw 1.45 million tons exported.Read more :-US Cotton Industry Seeks Removal of 11% Import Duty on Short Staple Cotton

This evening, the rupee ended the day 5 paise weaker versus the US dollar, at 83.46.At the close of trading, the BSE Sensex rose 36.45 points or 0.047% to close at 77,337.59. During the day's trading, the Sensex had touched a new all-time high of 77,851.63. On the other hand, the NSE's 50-share index Nifty fell 36.30 points or 0.15% to close at 23,521.60. During the day's trading, it had hit a new high of 23,664.005.Read more :- Dry Spell Threatens Cotton Farmers' Hopes

US Cotton Industry Wants 11% Import Tax on Short Staple Cotton RemovedCotton Council International (CCI) urged the Indian government on Tuesday to remove the 11% import duty on short staple cotton to lower prices and benefit the Indian textile industry.In February, India had removed the 10% import duty on cotton with a staple length above 32 millimeters (mm), known as Extra Long Staple (ELS) cotton. However, the 11% import duty on cotton with a staple length below 32 mm remains.The import duty, imposed on February 1, 2021, includes a 5% basic customs duty, a 5% tax, and a 1% social welfare charge."We are here to discuss challenges with our partners and seek solutions. The 11% import duty on US cotton imports, particularly shorter staple cotton, has negatively impacted the domestic textile industry," said Marc A Lewkowitz, President and CEO of SUPIMA, at a roundtable organized by CCI.Lewkowitz emphasized that India, despite its large cotton textile industry, cannot produce enough cotton to meet its domestic needs. ELS cotton production in India accounts for less than 1% of total cotton production, necessitating imports to support textile mills manufacturing yarns, apparel, and home textiles.The United States, Egypt, and Israel are major suppliers of ELS cotton to India.READ MORE :> Dry Spell Threatens Cotton Farmers' Hopes