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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

Rupee drops 7 paise versus the US dollar to 83.25.The rupee fell nine paise to 83.25 against the US dollar in early trade on May 29 due to a strong American currency and high crude oil prices.READ MORE:> PAKISTAN: Cotton Ginning Season Begins in Punjab and Sindh Amid Farmer Concerns

The rupee saw a 5 paise decline against the dollar this evening, closing at Rs 83.18.At the end of trading, BSE Sensex closed at 75,170.45, down 220.05 points or 0.29%. NSE's 50-share index Nifty slipped 44.30 points or 0.19% and closed at 22,888.15.Read more :-PAKISTAN: Cotton Ginning Season Begins in Punjab and Sindh Amid Farmer Concerns

In early trade, the rupee rose 3 paise against the US dollar, opening at 83.10.The rupee recovered from its all-time low and rose 10 paise to 83.10 against the US dollar in early trade on Tuesday, supported by a strong trend in domestic equities and gains in Asian currencies.Read More :> PAKISTAN: Cotton Ginning Season Begins in Punjab and Sindh Amid Farmer Concerns

Pakistan: Amid worries from farmers, the cotton ginning season starts in Punjab and Sindh.The new cotton ginning season has commenced in Pakistan, albeit with some reservations, as only one ginning unit each has become operational in Sindh and Punjab, with more expected to follow suit in the coming days.Reports indicate that partial cotton picking has commenced in coastal areas of Sindh and southern Punjab, leading to a gradual increase in the arrival of raw cotton in the market. However, the volume remains lower compared to last year during the same period.In Sindh's lower areas, cotton picking is gaining momentum, with prices ranging between Rs9,500 and Rs10,700 per 40kg. However, concerns persist as farmers, engrossed in their recently harvested wheat crops, seem to overlook cotton, exacerbated by the government's delay in announcing the cotton intervention price.Field reports suggest that soaring temperatures are hampering cotton sowing efforts. Moreover, textile mills, citing financial constraints, have withheld payments amounting to billions of rupees, exacerbating the sector's woes.A recent meeting between the Pakistan Cotton Ginners Association (PCGA) and the All-Pakistan Textile Mills Association (APTMA) failed to yield substantial outcomes, merely involving exchanging suggestions for improving the prevailing situation.Abid Zaidi, a prominent cotton expert, expressed disappointment over APTMA's lack of commitment during the meeting. He highlighted the grievances of ginners regarding textile mills' preference for importing cotton at higher prices rather than offering better rates for locally produced premium quality lint. Zaidi emphasized the need for textile mills to actively engage in producing quality lint and address the issue of non-lint content, which stands at up to 8%, a level not acceptable in other countries.Meanwhile, the Karachi Cotton Association's spot rate committee maintained the spot rate at Rs19,700 per bale. Naseem Usman, Chairman of the Karachi Cotton Brokers Forum, noted an upward trend in international cotton rates, with cotton futures trading at 80.52 cents per pound in the New York market.Chairman of the Cotton Ginners Forum, Ihsanul Haq, highlighted the adverse impact of unfavorable weather on cotton cultivation this season. Severe cold earlier affected cotton sowing in February and March in coastal Sindh, while higher temperatures are now impeding sowing and growth in major cotton zones of Punjab and Sindh, including districts like Rahim Yar Khan, Bahawalpur, Multan, Sukkur, and others.In response to the sector's challenges, the Punjab government announced plans to establish a garment city covering 1,000 acres near Lahore to attract local and foreign investors for setting up new textile mills. However, Haq proposed reallocating these funds to revive the 50 to 60% of textile mills lying dormant in the province due to various reasons.Read more :- PAKISTAN : Over 100,000 Acres in Faisalabad Under Cotton Cultivation

The rupee fell 3 paise to close at Rs 83.13 versus the US dollar this evening.At the end of trading, BSE Sensex closed at 75,390.50, down 19.89 points or 0.03%. NSE's 50-share index Nifty slipped 24.65 points or 0.11% and closed at 22,932.45.Read more :- The Textile Industry Calls for Policy Revisions to Ensure Competitive Raw Material Prices