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 A dry spell jeopardizes the hopes of cotton farmersDespite the IMD's forecast for good rainfall from July to September, a prolonged dry spell has impacted rain-fed crops, especially cotton, in the State.In Hyderabad, many districts are experiencing severe dry conditions, dampening the hopes of cotton farmers. Poor germination due to insufficient soil moisture is forcing many farmers to consider a second round of sowing. However, the availability and cost of seeds for a second sowing within a month present significant challenges, potentially driving farmers towards alternative crops.Farmers, relying on the forecast of good rains, had extensively planted cotton, covering over 4 million acres by mid-June. However, several districts reported deficient rainfall, including Mancherial, Peddapalli, Adilabad, Asifabad, Kothagudem, Khammam, Siddipet, and Kamareddy. Specific deficiencies include:Adilabad, 74 mm in Mancherial, 44 mm in Nirmal, 38 mm in Nizamabad, 58 mm in Peddapalli, 44 mm in Bhupalpalli, 34 mm in Jagitial, 20 mm in Bhadradri Kothgudem, 38 mm in Karimnagar and 31 in Rajanna Sircilla, 28 mm in Kamareddy and 39 mm in Mulugu.The dry spell, lasting over a couple of weeks, has severely affected cotton and other rain-fed crops. Small landholders have resorted to using sprinklers to maintain soil moisture for better germination. However, those cultivating larger areas (5 to 10 acres) are struggling to save their crops.Reports from districts like Nirmal and Kothagudem indicate that if the dry spell continues for another week to ten days, farmers could face substantial losses at the start of the Kharif season. Additionally, the availability of seeds for a second sowing is a significant concern.The Department of Agriculture has promised to facilitate seed supply according to demand, but farmers report shortages of the most sought-after seed varieties. Agriculture officials, however, claim there is no seed supply shortage and believe it is premature to determine the fate of the seeds within just a couple of weeks.READ MORE :> Late Demand from Bangladesh Boosts Indian Cotton Exports by 67%

Bangladesh's Late Demand Increases Indian Cotton Exports by 67% India’s cotton exports for the 2023-24 season, ending in September, are projected to surge by over two-thirds due to rising demand from mills in Bangladesh. The Cotton Association of India (CAI) forecasts shipments to reach approximately 2.6 million bales (170 kg each), marking a 67.7% increase from the previous season's 1.55 million bales.“Bangladesh mills, which are operating on a tight supply, are purchasing Indian cotton as their shipments from the US and Brazil have been delayed. Currently, around 100,000 to 150,000 bales are being exported to Bangladesh each month,” said Atul Ganatra, President of CAI. Deliveries to Bangladesh by road take about five days.In a recent meeting, CAI revised its pressing estimates for 2023-24 to 31.77 million bales, up from 30.9 million bales in February. This increase is primarily attributed to Central Indian farmers offloading old stocks. However, the current season’s pressing estimates are still lower than the previous year’s 31.89 million bales. Ganatra noted that the rise in pressing figures is due to carry-forward stocks entering the market. By the end of May, about 29.65 million bales had been pressed.*Imports on the Rise*Imports of cotton are estimated at 1.64 million bales, up from 1.2 million bales last season. By the end of May, 550,000 bales had already arrived in the country. Including opening stocks, imports, and pressing estimates, the total supply is projected to be 36.3 million bales, higher than the previous season's 35.54 million bales.CAI estimates domestic demand at 31.7 million bales, up from 31.1 million bales. Demand from the non-MSME segment is expected to be 20.1 million bales (previously 28 million bales), while consumption from MSMEs is projected to rise significantly to 10 million bales from 1.5 million bales. Non-textile consumption remains steady at 1.6 million bales. Ganatra explained that the changes in consumption figures are due to the regrouping of data into new categories by the Committee on Cotton Production and Consumption (COCPC).The average capacity utilization of spinning mills is estimated at around 90%, with mills in Central and North India operating at full capacity, and those in South India at 80%. CAI predicts closing stocks for the current season will be lower at 2.05 million bales, compared to last year’s 2.89 million bales.READ MORE :>  India's monsoon has brought 20% less rainfall

In early trade, the rupee climbs 6 paise to 83.37 against the US dollar.The local unit, however, faced resistance due to a stronger American currency and higher crude oil prices overseas, forex traders said.Read More :> Aus, Brazil, US Cotton Shippers Sign MoU

This evening, the rupee appreciated by 15 paise to settle at Rs 83.41 versus the US dollar.The Sensex rose 374 points to touch 77,366 during the trade. However, a slight decline was seen after this. The Sensex rose 308 points to close at 77,301.At the same time Nifty also made an all time high of 23,579 today. However, it also came down a bit later and closed at 23,557 with a gain of 92 points.Read more :- India's monsoon has brought 20% less rainfall

In early trade, the rupee climbs 3 paise to 83.52 against the US dollar.Sensex jumps 300 pts to hit fresh record high, Nifty zooms past 23,500 for 1st timeRead  More :> India's monsoon has brought 20% less rainfall

Rainfall from India's monsoon has decreased by 20%.India's monsoon has brought 20% less rainfall than usual this season, posing concerns for the crucial agricultural sector, according to the India Meteorological Department (IMD). Typically starting in the south around June 1 and spreading nationwide by July 8, the monsoon is essential for planting crops like rice, cotton, soybeans, and sugarcane.Data shows a significant shortfall across most regions, with central India, which grows soybeans, cotton, and sugarcane, experiencing a 29% deficit. The paddy-growing southern region, however, received 17% more rain due to an early monsoon onset. The northeast saw 20% less rainfall, while the northwest had a 68% shortfall, exacerbated by heat waves.Monsoon rains are vital for India's nearly $3.5-trillion economy, providing 70% of the water needed for agriculture and replenishing reservoirs. About half of India's farmland relies on these annual rains, which typically continue until September.An IMD official noted that the monsoon's progress has stalled but could recover quickly. Northern states are expected to endure heat waves for a few more days, with temperatures 4-9°C above normal, but a cooldown is anticipated by the weekend.Read more :- Aus, Brazil, US Cotton Shippers Sign MoU

Cotton Shippers Connect in Aus, Brazil, and the USThe Australian Cotton Shippers Association (ACSA), American Cotton Shippers Association, and Brazilian Cotton Shippers Association (ANEA) have signed a memorandum of understanding (MoU) to advance the global cotton industry. This agreement aims to ensure the long-term economic and social vitality of their respective industries through a collaborative approach to global industry issues.The MoU was formalized at the American Cotton Shippers Association Annual Convention in Scottsdale, Arizona, on June 14. ACSA chairman Tony Geitz emphasized the importance of working together to lead discussions on policy-making and global supply chains. American Cotton Shippers Association CEO Buddy Allen highlighted the collective goals despite being competitors, aiming to keep cotton the universal fiber of choice. ANEA president Miguel Faus stressed the partnership's goal to strengthen mutual understanding and enhance consumer and policymaker awareness about cotton's positive contributions.Australia, the US, and Brazil, the top three cotton exporters, are optimistic about the MoU's impact on global cotton uptake. The USDA’s June report increased Australia's 2024-25 export projection to 5.4 million bales and maintained the US and Brazil forecasts at 13 million and 12.5 million bales, respectively. The report also adjusted projections for other regions and increased the forecast for global ending stocks.Read nore :- TAMILNADU Nagapattinam Cotton Growers in Distress as Prices Plummet After Off-Season Rain

Cotton Growers in Tamil Nadu's Nagapattinam Are in Crisis as Prices Drop Following Off-Season RainsLocal traders are offering only ₹40 to ₹46 per kg, compared to ₹80 to ₹110 per kg last year, according to farmers; unions are urging government intervention to assist them.Cotton farmers in Nagapattinam are facing severe distress due to a significant drop in prices, exacerbated by recent untimely rains. Despite the minimum support price (MSP) being set at ₹66 per kg this year, local traders are buying cotton at only ₹40 to ₹46 per kg.P. Balasubramanian, president of Alathur Panchayat in Tirumarugal block, where cotton is cultivated on 220 hectares, highlighted that low procurement prices have driven farmers into debt. "At least ₹50,000 is needed to cultivate cotton on one acre. Due to recent untimely rain, only 2 to 2.5 quintals of cotton are harvested per acre, compared to the usual 4 to 4.5 quintals. With private traders offering just ₹40 to ₹46 per kg, we cannot cover our costs, forcing us to take loans even for basic family needs," he said.R. Kavya, a farmer from Tirumarugal, expressed similar concerns. "The current price is only ₹42 per kg. I cultivated cotton on around 2 acres this year, hoping to use the profit for my children's education and to remodel our house. But the price drop has left me in a hopeless situation. I even need financial assistance to shift to paddy in the coming season," she said.S.R. Tamil Selvan from the Tamizhaga Vivasayigal Pathukappu Sangam called for government intervention. "Cotton farmers are severely affected, and the government has not stepped in. The Cotton Corporation of India (CCI) should procure directly from farmers to save them from middlemen who do not pay the MSP," he urged.An official from the Agriculture Department confirmed the statewide trend of price drops, noting that last year, good quality cotton sold at ₹110 per kg and average quality at ₹80 per kg. "Cotton is cultivated on 2,700 hectares in Nagapattinam, and we've reported to the State government that crops on 1,300 hectares were lost due to untimely rain. Among those unaffected, the price drop has hurt farmers badly. The CCI can step in, but it has many norms, such as managing transportation costs for ginning, which must be borne by farmers. Farmers need to be united to persuade the CCI to help them, but most prefer local traders who purchase directly from the field despite the huge price differences," said a senior Agriculture Department official.Sources in the Agriculture Marketing Department mentioned plans to open a regulated market for cotton in the district soon. "It is challenging to attract traders who will procure at higher prices," said an official.Read More :> India's Goods Exports Surge by 9.1% in May 2024 to $38.13 Billion

India’s Merchandise Exports Rise 9.1% in May 2024 to $38.13 Billion; Trade Deficit WidensIndia’s merchandise exports increased by 9.1% year-on-year in May 2024, reaching $38.13 billion, supported by strong performance in engineering goods, petroleum products, electronics, pharmaceuticals, and textiles. The growth reflects a revival in global demand, according to government data released on Friday.Imports Increase, Trade Deficit WidensImports in May 2024 rose by 7.7% to $61.91 billion, driven by higher shipments of petroleum, transport equipment, silver, and vegetable oil. As a result, the trade deficit widened to $23.78 billion, the highest level in seven months.Positive Economic OutlookCommerce Secretary Sunil Barthwal noted that easing inflation in advanced economies has improved consumer purchasing power, leading to stronger demand. He expressed confidence that the export growth trend is likely to continue.Exporters also remain optimistic, citing rising global order bookings and expectations of stronger trade growth in 2024, as projected by the WTO, IMF, and OECD. In 2023, global trade had slowed due to high inflation, rising interest rates, and weak demand conditions.FIEO President Ashwani Kumar said that improved demand from the European Union, the UK, West Asia, and the United States is expected to support export growth. He added that a more than 10% rise in order bookings signals recovery in labor-intensive export sectors.Strong Start to FY25India’s exports had declined by 3.1% to $437 billion in 2023–24. However, FY25 began on a positive note, with exports rising in both April and May 2024. Total exports for April–May increased by 5.1% to $73.12 billion. During the same period, imports rose by 8.89% to $116.01 billion, resulting in a trade deficit of $42.89 billion compared to $36.97 billion in the previous year.Sectoral DeclinesSome sectors recorded declines in May 2024, including gems and jewellery, marine products, iron ore, cashew, and oil meals. Notably, spice exports fell by 20% to $361.17 million, following recalls of certain Indian spice products in markets such as Hong Kong and Singapore.Key Export DestinationsThe top export destinations showing strong year-on-year growth in May 2024 were Malaysia (86.95%), the Netherlands (43.92%), the United Kingdom (33.54%), the United Arab Emirates (19.43%), and the United States (13.06%).Major Import SourcesThe leading sources of import growth included Angola (1274.95%), Iraq (58.68%), the UAE (49.93%), Indonesia (23.36%), and Russia (18.02%).Read more :- Did farmers turn their back on cotton this year?

Have farmers abandoned cotton this year?Even having to make efforts to buy seedsAmravati, June 13 - Cotton sowing has been decreasing in West Vidarbha for the last few years. Cotton, known as white gold, is leading farmers to losses. In the last Kharif season, cotton was sown on 10.83 lakh hectares. This year it is expected to decrease to 10.70 lakh hectares.Cotton rates were low in the last season. Initially, the price was Rs 7,000 per quintal, but in the last phase of the season, the price fell to Rs 7400, due to which farmers did not get any benefit. In West Vidarbha, where most cotton is sown, cotton sowing area has been continuously decreasing for the last one and a half decade. After the arrival of BT seeds in the market, the infestation of bod jhali decreased for 4-5 years and productivity increased, but after that the attack of pink bod dawi on cotton and the attack of the sap sucking insect increased the cost of spraying pesticides.- Average area of cotton: 10 lakh 36,961 hectares- Sowing area for 2023-24: 10 lakh 82,450 hectares- Proposed area for 2024-25: 10 lakh 70,430 hectaresProduction is decreasingIn West Vidarbha, 90% of cotton is grown in non-irrigated area and its productivity is very low. Cotton is getting low prices for the last two years. The cotton kept at home in the hope of increasing prices is also not being sold at the expected price. Due to storage of cotton, the members of the farmer family are getting skin disorders like boils on the body, itching etc. Two years ago, cotton got a price of Rs 12 thousand per quintal, which fell to Rs 7 thousand in the last season. Because of this, farmers are worried.This year's Kharif season is starting. Still, there is no increase in the prices of cotton, while on the other hand, the prices of grains and pulses are good. Therefore, farmers can give priority to these crops this year. Cotton producers are facing the problem of laborers. Laborers are not available on time to pick cotton and they have to be paid more wages. This year, farmers are having to work hard even to get cotton seeds.Read more :- Mali’s Cotton Crisis: Unpaid Farmers Threaten Economic Stability

This evening, the rupee ended the day 2 paise weaker versus the US dollar, at 83.56.At the close of trading, the BSE Sensex rose 181.88 points, or 0.24%, to close at 76,992.77. The NSE's 50-share index Nifty gained 66.70 points, or 0.29%, to close at 23,465.60. During the day's trading, it had hit a new high of 23,490.40.Read more :- Textile industry in TN looks up to central govt to regain its past glory