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Better monsoon brings smiles on farmers' faces, bumper yield of Kharif crop expected

Farmers are happy with the improved rainfall, and a bumper output of the Kharif crop is anticipated.Better monsoon has brought happiness back on farmers' faces. According to the latest data from the Ministry of Agriculture, due to better monsoon this year, the total area under sowing of Kharif crops has increased by 10.3 percent to 575 lakh hectares, while last year by this time, sowing was done in 521.25 lakh hectares. Some areas remained dry due to irregular rains. This time bumper yield is expected due to increase in sowing area, which will increase the income of farmers and increase demand in rural areas. This is a positive sign for the Indian economy.Increase in cultivation of pulses and oilseedsThis Kharif season, the area under cultivation of pulses has increased to 62.32 lakh hectares, which is 26 percent more than last year. Oilseed cultivation has also increased to 140.43 lakh hectares, while last year it was 115.08 lakh hectares. Increasing the cultivation of pulses and oilseeds is a positive step, as the production of these commodities is often less than the demand, which leads to rising prices.Expectation of reduction in prices and importsIncreasing the area of cultivation of pulses and oilseeds will help in controlling the prices of pulses and oil, which will provide relief to the common people. Currently, to meet the demand of pulses and oil in the country, one has to resort to expensive imports, which leads to expenditure of foreign exchange and there is a risk of weakening of the rupee. Increasing production in the country will reduce the need for imports and pulses and oil will be available at cheaper prices.Read More :> Indian farmers rush to plant summer crops after monsoon revives

Indian farmers rush to plant summer crops after monsoon revives

As soon as the monsoon returns, Indian farmers hurry to plant summer crops.Indian farmers have rushed to plant summer crops such as paddy, soybean, cotton and maize following above-average monsoon rains in July after a poor June spell, according to government data.Monsoon rains, crucial for India's economic growth, normally begin in southern India around June 1 and spread across the country by July 8, allowing farmers to plant summer crops. However, June received 11% less rain than average, delaying sowing.According to the Ministry of Agriculture and Farmers Welfare, the first fortnight of July received 9% more rain than normal, helping farmers plant summer crops on 57.5 million hectares (142 million acres) by July 12, a tenth more than last year.Farmers have sown paddy on 11.6 million hectares, 20.7% more than the same period last year. Higher rice sowing could ease the country's supply concerns. Higher rice purchases by government agencies from last season's crop and an expansion in paddy acreage could allow the government to ease restrictions on rice exports in October, a New Delhi-based dealer said.Farmers sowed oilseeds, including soybeans, on 14 million hectares of land, compared with 11.5 million hectares a year earlier. Maize sowing was on 5.88 million hectares, up from 4.38 million hectares a year earlier. Cotton acreage rose slightly to 9.6 million hectares, while sowing of pulses rose 26% to 6.23 million hectares from a year earlier.Read more :- Indian Spinning Mills Turn Cautious as Cotton Season Nears End

Recovery in Domestic Cotton Yarn Demand Expected in FY25: ICRA

recovery-in-domestic-cotton-yarn-demand-expected-in-fy25-icraICRA projects a 6-8% growth for the domestic cotton spinning industry in FY2025, driven by 4-6% volume growth and slight realization gains, following two years of decline. Recovery signs are visible in downstream segments like readymade garments and home textiles, while exports, which rebounded in FY2024, are expected to normalize despite global demand challenges.Domestic cotton prices, which peaked at Rs. 284 per kg in H1 FY2023, have declined over the past two years but are expected to rise slightly with demand recovery and reduced sown area. Cotton yarn prices, declining since June 2022, are also expected to increase marginally in FY2025.K Srikumar, Senior Vice President at ICRA, predicts a 6-8% improvement in operating income for cotton spinning companies in FY2025, with gross contribution margins recovering by 5% in Q1 FY2025. Operating profit margins are expected to expand by 100-150 basis points due to scale benefits and cost-saving measures.High debt-funded capex in FY2023 impacted the industry's coverage metrics, but a marginal capex increase is anticipated in FY2025 for modernization and increased demand from the China Plus One strategy. Leverage levels rose in FY2024 but are expected to decrease with better cash accruals and minimal capex spending, improving debt protection metrics. The total debt to operating profit ratio is expected to improve to 2.5-3.0 times from 3.5-4.0 times in FY2024.Read More :>  Indian Spinning Mills Turn Cautious as Cotton Season Nears End

Indian Spinning Mills Turn Cautious as Cotton Season Nears End

Indian Spinning Mills Turn Cautious as Cotton Season Nears EndSpinning mills in India are exercising caution in purchasing cotton as the current season approaches its end, aiming to avoid liquidity issues.“Being the end of the cotton season and liquidity issues in the overall market, mills want to be careful in cotton purchases. Man-made and cellulosic fibre penetration has also helped mills to reduce their exposure to cotton,” said Prabhu Dhamodharan, Convenor, India Texpreneurs Federation (ITF).Despite the Cotton Corporation of India's (CCI) substantial stock of over 20 lakh bales, prices quoted by CCI remain a dampener due to slack demand, according to Ramanuj Das Boob, vice president of the All India Cotton Brokers Association.“If traders buy cotton from CCI and resell it to mills on credit, the economy doesn’t work out. So, they are also silent,” he said.The lack of demand for yarn and declining prices are hurdles for the textile industry, according to Rajkot-based cotton trader Anand Popat. Bearish speculators on the InterContinental Exchange (ICE) also contribute to the dull trading despite strong fundamentals.Cotton prices have dropped over 10% since the beginning of 2024. The US Department of Agriculture’s Economic Research Service forecasts a decline in global cotton prices for the third consecutive year in 2024-25. Global production is expected to increase by nearly 5%, with significant contributions from Brazil and the US offsetting expected losses in China, India, and Pakistan.The government has increased the minimum support price (MSP) of cotton for the current crop year to ₹7,121 per quintal from ₹6,620 last year, prompting some mills to resume buying. CCI has sold around 3-4 lakh bales following the MSP hike.Cotton yarn exports have stabilized at 9-10 crore kg per month, with consistent buying from Bangladesh and Europe expected to continue.Read More :> Bangladesh and Vietnam Poised to Lead Global Cotton Consumption Growth Over Next Decade

Bangladesh and Vietnam Poised to Lead Global Cotton Consumption Growth Over Next Decade

Bangladesh and Vietnam Poised to Lead Global Cotton Consumption Growth Over Next DecadeBangladesh and Vietnam are set to lead the global growth in cotton consumption and trade over the next decade, thanks to their competitive labor and production costs, according to the OECD-FAO Agricultural Outlook 2024-2033.Key Highlights- Growth in Cotton Consumption: Global cotton consumption is expected to increase by 1.7% annually, driven by population growth and rising incomes in middle- and low-income countries.- Bangladesh and Vietnam: Both countries will see their cotton imports grow by over 3% annually, significantly influencing global trade. Bangladesh's mill consumption is projected to rise to 2.42 million tonnes by 2033.- Global Trade Dynamics: World cotton trade is forecast to expand by 2.1% annually, reaching 12.4 million tonnes by 2033, largely due to increased mill use in Bangladesh and Vietnam.- Major Producers: India, the United States, and Brazil will contribute significantly to the global cotton production increase, which is projected to reach 29 million tonnes by 2033.- Impact of FTAs: Free Trade Agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement, have facilitated market access for Vietnamese textile exports.- Shift in Textile Industry: While synthetic fibers have gained market share, natural fiber consumption, including cotton, peaked at 26.5 million tonnes in 2007 but has since declined.- Bangladesh's Cotton Industry: Bangladesh primarily manufactures cotton-based garments, with 75% of its readymade garments for export made from cotton.The report underscores the critical role of Bangladesh and Vietnam in the global cotton market and highlights the importance of fresh seeds and sustainable practices to address frequent pest attacks and enhance yields.Read More :> Cotton Under Pink Bollworm Attack in Mansa, Fazilka, and Abohar; Farmers Worried

Cotton Under Pink Bollworm Attack in Mansa, Fazilka, and Abohar; Farmers Worried

Farmers Concerned About Cotton Under Pink Bollworm Attack in Mansa, Fazilka, and AboharThe dreaded pink bollworm has hit the cotton crop in Mansa, Fazilka, and Abohar areas, raising concerns within the state Agriculture Department.Though the pest attack is currently below the economic threshold level (ETL), cotton growers, following the Agriculture Department's advice, have started extensive pesticide spraying to address the situation. Department officials informed The Tribune that the insect had been spotted on plants in villages bordering Rajasthan and Haryana.At present, cotton crops in Rajasthan's Sriganganagar, Anupgarh, and Hanumangarh districts are also under pink bollworm attack. In some areas, farmers have begun ploughing back cotton plants into the fields.Balkar Singh, a cotton cultivator from Khiali Chahianwali village in Mansa, reported spotting pink bollworm in some fields in his village. “Flowering is yet to begin, but the pest attack has already set in. We have done two rounds of insecticide spraying, increasing our input cost by Rs 2,000 per acre for each spray. I have incurred an additional expenditure of Rs 18,000 on insecticide sprays for nine acres,” he said. Farmers are also grappling with a whitefly attack.* Last year, many cotton growers in the Malwa region suffered losses due to a pink bollworm attack. Cotton was cultivated immediately after harvesting moong, a natural habitat for pink bollworm, which led to the insect remaining in the soil and later attacking the cotton crop. Subsequent heavy rainfall aggravated the pest attack, damaging nearly 60 percent of the cotton crop in the state. Pink bollworm also caused significant damage in 2021.*Gurpreet Singh Sandhu, a cotton farmer in Patti Sadiq village of Abohar, shared that last year, his cotton yield fell to two quintals per acre from the standard yield of 8-10 quintals per acre. “This year again, the crop is under pink bollworm attack, and I have started multiple insecticide sprays as recommended by Punjab Agricultural University scientists. But the prospects do not seem bright this year either. Fortunately, I reduced the area under cotton, or my losses would have been much higher,” he said.Due to repeated crop failures, farmers in Punjab are increasingly avoiding cotton cultivation. This year, only 99,720 hectares are under cotton crop, against a target of 2 lakh hectares. Of this area, the Agriculture Department has adopted 60,000 hectares for field trials, and all insecticides are being provided by the department.*Pest Control Measures- The pink bollworm has been spotted on plants in Punjab villages bordering Rajasthan and Haryana.- Although the pest attack is below the economic threshold level (ETL), farmers have started extensive pesticide spraying.- Experts suggest that providing fresh seeds to farmers and not allowing the use of old seeds is crucial to addressing frequent pest attacks.Common Cotton Pests- Pink Bollworm (Gulabi Sundi): This pest has been devastating cotton fields in Punjab, Haryana, and Rajasthan. It is resistant to first-generation transgenic Bt cotton.- Whitefly (Chitti Makhi): Thrives in warm and tropical climates and is found on the leaves of cotton plants. The honeydew secreted by it deposits on cotton fibers, affecting cotton quality.The dreaded pink bollworm has hit the cotton crop in Mansa, Fazilka, and Abohar areas, raising concerns within the state Agriculture Department.Though the pest attack is currently below the economic threshold level (ETL), cotton growers, following the Agriculture Department's advice, have started extensive pesticide spraying to address the situation. Department officials informed The Tribune that the insect had been spotted on plants in villages bordering Rajasthan and Haryana.At present, cotton crops in Rajasthan's Sriganganagar, Anupgarh, and Hanumangarh districts are also under pink bollworm attack. In some areas, farmers have begun ploughing back cotton plants into the fields.Balkar Singh, a cotton cultivator from Khiali Chahianwali village in Mansa, reported spotting pink bollworm in some fields in his village. “Flowering is yet to begin, but the pest attack has already set in. We have done two rounds of insecticide spraying, increasing our input cost by Rs 2,000 per acre for each spray. I have incurred an additional expenditure of Rs 18,000 on insecticide sprays for nine acres,” he said. Farmers are also grappling with a whitefly attack.* Last year, many cotton growers in the Malwa region suffered losses due to a pink bollworm attack. Cotton was cultivated immediately after harvesting moong, a natural habitat for pink bollworm, which led to the insect remaining in the soil and later attacking the cotton crop. Subsequent heavy rainfall aggravated the pest attack, damaging nearly 60 percent of the cotton crop in the state. Pink bollworm also caused significant damage in 2021.*Gurpreet Singh Sandhu, a cotton farmer in Patti Sadiq village of Abohar, shared that last year, his cotton yield fell to two quintals per acre from the standard yield of 8-10 quintals per acre. “This year again, the crop is under pink bollworm attack, and I have started multiple insecticide sprays as recommended by Punjab Agricultural University scientists. But the prospects do not seem bright this year either. Fortunately, I reduced the area under cotton, or my losses would have been much higher,” he said.Due to repeated crop failures, farmers in Punjab are increasingly avoiding cotton cultivation. This year, only 99,720 hectares are under cotton crop, against a target of 2 lakh hectares. Of this area, the Agriculture Department has adopted 60,000 hectares for field trials, and all insecticides are being provided by the department.*Pest Control Measures- The pink bollworm has been spotted on plants in Punjab villages bordering Rajasthan and Haryana.- Although the pest attack is below the economic threshold level (ETL), farmers have started extensive pesticide spraying.- Experts suggest that providing fresh seeds to farmers and not allowing the use of old seeds is crucial to addressing frequent pest attacks.Common Cotton Pests- Pink Bollworm (Gulabi Sundi): This pest has been devastating cotton fields in Punjab, Haryana, and Rajasthan. It is resistant to first-generation transgenic Bt cotton.- Whitefly (Chitti Makhi): Thrives in warm and tropical climates and is found on the leaves of cotton plants. The honeydew secreted by it deposits on cotton fibers, affecting cotton quality.Read More :>  Cotton Prices Plummet by 40% in Ramanathapuram Market, Farmers Seek Government Aid

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