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Cotton Market: Cotton prices rise by 5.24% in a week; farmers receiving rates above MSPThe country's cotton market is witnessing renewed strength. Prices have surged significantly due to a continuous decline in cotton arrivals at the mandis (wholesale markets). During the week ending June 28, the average market price of cotton in the country rose to ₹8,902 per quintal, marking a 5.24% increase compared to the previous week. This rally, occurring just before the start of the new cotton season, is considered welcome news for cotton-growing farmers.According to market experts, the primary reason for the price hike is the sharp drop in cotton arrivals at the mandis. Total cotton arrivals across the country's Agricultural Produce Market Committees (APMCs) were 23.54% lower than the previous week. The impact was most pronounced in Maharashtra, where a 54.75% decline in arrivals was recorded. Limited stocks intensified buying competition among traders, thereby strengthening market prices.The Central Government had set the Minimum Support Price (MSP) for medium-staple cotton at ₹7,410 per quintal for the 2025-26 season, while raising it to ₹8,267 per quintal for the 2026-27 season. Currently, the average price in the open market exceeds even the new MSP. Consequently, farmers are securing better returns by selling in the open market rather than at government procurement centers.Among key markets, the highest average price was recorded in Amravati at ₹8,955 per quintal. Additionally, average prices stood at ₹8,902 in Rajkot, ₹8,304 in Parbhani, and ₹8,200 per quintal in Buldhana.In the coming days, the trend of cotton prices will depend on sowing for the new season, the progress of the monsoon, domestic demand, and global market conditions. However, prices are likely to remain supported as long as stocks from the previous season remain limited. Therefore, farmers who still hold cotton stocks can decide when to sell by keeping a close watch on market trends.read more :- The rupee strengthened by 18 paise to open at 95.21 per dollar.

Rupee opens at 95.21 against the dollar.On Friday, the Indian rupee opened at 95.21 against the dollar, up 18 paise from its Thursday close of 95.39.The Sensex was up 450.78 points or 0.58 percent at 77,952.90, and the Nifty was up 138.75 points or 0.57 percent at 24,314.45. About 123 shares advanced, 44 shares declined, and 5 shares unchanged.READ MORE :- Cotton Sowing Lags in Key States

Slow Sowing Pace in Key Cotton-Producing States; Acreage Lower Than Last YearCotton sowing in India's three largest cotton-producing states—Gujarat, Maharashtra, and Telangana—has remained below last year's levels, indicating a sluggish start to the 2026-27 Kharif season. According to the latest data released by the respective state agriculture departments, sowing across all three states has lagged compared to the same period last year, with Maharashtra witnessing the sharpest decline.In Maharashtra, direct cotton sowing has dropped to 7.27 lakh hectares from 25.57 lakh hectares recorded during the same period last year. The state has registered the most significant reduction in sowing among the three major cotton-producing states, reflecting a substantial delay in planting activity.Gujarat has also recorded a significant decline in cotton acreage (cultivation area). Sowing has fallen from 13.99 lakh hectares last year to 6.84 lakh hectares this season, primarily due to slow planting in the Saurashtra region. However, comparatively better progress has been observed in certain districts of North and Central Gujarat.Among the three states, Telangana has recorded the smallest year-on-year decline. Cotton sowing stands at 26.83 lakh acres, compared to 30.69 lakh acres during the same period last year. Increased sowing in districts such as Nalgonda, Sangareddy, and Rangareddy has partially offset the decline seen in other cotton-growing areas.Market experts attribute the current sluggishness in sowing primarily to delayed and uneven monsoon rainfall across key cotton-producing regions. The progress of the southwest monsoon during July will be crucial, as timely rainfall could accelerate sowing operations and influence the final cotton acreage for the 2026-27 season.read more :- The rupee fell by 47 paise against the US dollar to close at 95.39.

On Thursday, the Indian rupee weakened by 47 paise to settle at 95.39 against the US dollar, after opening the trading session at 94.92.Meanwhile, domestic equity markets ended higher. The Sensex gained 579.48 points, or 0.75 percent, to close at 77,502.12, while the Nifty rose 169.85 points, or 0.71 percent, to finish at 24,175.70.In broader market action, 2,436 shares advanced, 1,663 declined, and 165 remained unchanged.read more :- Andhra Cotton Sowing Surges 158%

Sharp Rise in Cotton Sowing in Andhra Pradesh; Acreage Crosses 1.86 Lakh HectaresA significant increase in cotton sowing has been recorded in Andhra Pradesh during the Kharif 2026 season. According to a report by the State Agriculture Department, cotton sowing had been completed across a total area of 1,86,280 hectares in the state by the week ending July 1, 2026. This marks an increase of approximately 158 percent compared to the 72,282 hectares sown during the same period last year, reflecting growing farmer participation and favorable weather conditions.The state's total cotton sowing target has been set at 5,14,858 hectares, with sowing completed on approximately 36 percent of this area so far. Typically, sowing covers only 58,452 hectares by this time; however, this year's figure is 319 percent higher than normal, indicating a strong start to the Kharif season.District-wise data shows Kurnool leading in cotton cultivation, with sowing completed on 1,30,662 hectares so far. This is followed by Palnadu (19,413 hectares), Ananthapuramu (12,846 hectares), NTR district (8,989 hectares), and YSR Kadapa (4,955 hectares). Sowing has also taken place at varying levels in districts such as Nandyal, Sri Sathya Sai, Markapuram, Prakasam, SPSR Nellore, Kakinada, Eluru, Krishna, and Tirupati.However, cotton sowing remains negligible or non-existent in certain districts, including Visakhapatnam, West Godavari, Bapatla, Chittoor, Annamayya, Polavaram, Anakapalli, Alluri Sitarama Raju, and Konaseema. Agriculture Department officials state that the onset of the monsoon has been relatively favorable this year, enabling farmers to carry out sowing on time. If rainfall conditions remain normal in the coming weeks, the total area under cotton cultivation is likely to increase further. Consequently, an improvement in cotton production in the state is anticipated this year.read more :- Karnataka Sees 42% June Rainfall Deficit

Karnataka Records 4th Lowest June Rainfall in 50 Years; 42% DeficitHubballi: June 2026 marked the fourth-driest June for Karnataka in the last five decades. The state recorded only 116 mm of rainfall during the month, a 42% deficit compared to the normal 199 mm. This has raised concerns about the serious impact on Kharif crop sowing, reservoir water levels, and the rural economy.The lowest rainfall for June in the state was recorded in 2023, with only 87 mm of rain. Between 1976 and 2026, June rainfall was below normal in over 21 years, while above-normal rainfall was recorded in 19 years. The highest rainfall was recorded in 1991, at 294 mm.The impact of the weak monsoon is also evident in the state's reservoirs. On June 28, 2026, the water level in the Tungabhadra reservoir near Hosapete stood at just 9.47 TMCft, compared to 61.88 TMCft during the same period the previous year. Due to poor rainfall in the catchment area, water inflow into the reservoir remained extremely low throughout the month.According to data from the Karnataka State Natural Disaster Monitoring Centre, the number of years with below-average June rainfall has increased over the last two decades. Since the year 2000, rainfall patterns in June have become increasingly erratic, clearly demonstrating the impact of climate change on the agricultural sector.According to agricultural economist Prakash Kammardi, the cultivation of ragi (finger millet) in South Karnataka and jowar (sorghum), soybean, and other Kharif crops in North Karnataka relies heavily on June rainfall. If adequate rain does not arrive on time, farmers often delay or even skip sowing, which adversely affects both production and income. Experts believe that while total monsoon rainfall has been above normal in recent years, there is a possibility that rainfall in July this year could be affected by the impact of El Niño. If this happens, it could place additional strain on agriculture, water resources, and rural livelihoods in the state.read more :-Rain Revives Kharif Sowing in Adilabad

Good Rainfall Brings Renewed Hope for Kharif Crops in Adilabad; Farmers Accelerate SowingAdilabad: Good rainfall during the last week of June has brought smiles back to the faces of farmers in the Adilabad region. Farmers, previously concerned about a prolonged dry spell, are now optimistic about the Kharif season. Continuous rains have ensured adequate soil moisture, accelerating the sowing of major Kharif crops such as cotton, red gram (tur), and soybean.For the first three weeks of June, Adilabad, Komaram Bheem Asifabad, Nirmal, and Mancherial districts recorded below-normal rainfall. Mancherial district, in particular, faced a significant rainfall deficit up to June 19. However, widespread rainfall in the last week of June led to a marked improvement in the situation, bringing rainfall levels in most districts into the normal range.According to official data as of July 1, Nirmal district recorded 170.2 mm of rainfall against a normal of 178.2 mm, resulting in a deficit of only 4 percent. Komaram Bheem Asifabad district received 169.2 mm of rain against a normal of 195.5 mm, marking a 13 percent deficit. Mancherial district recorded 140.3 mm of rain against a normal of 168.0 mm, reducing the rainfall deficit to 16 percent. Meanwhile, Adilabad district recorded 166.0 mm of rainfall against a normal of 216.7 mm, leaving a deficit of 23 percent.Agricultural officials state that the rainfall in the last week of June has created a favorable environment for the Kharif season. Farmers whose initial sowing efforts failed due to scanty rainfall are now re-sowing seeds. Adequate moisture has raised hopes for better seed germination and a successful harvest. Rajeshwar, a farmer from Tantoli village in Adilabad Rural Mandal, stated that farmers were disheartened by the scanty rainfall during the first three weeks of June and feared the Kharif season would be adversely affected. However, heavy rains in the final week completely changed the situation. He added that farmers are now fully engaged in sowing operations and are hopeful of a good Kharif harvest, provided the weather remains favorable.read more :- Rupee Opens 32 Paise Higher at 94.92 Against Dollar.

The rupee opened 32 paise higher at 94.92 against the USD.On Thursday, the Indian rupee opened 32 paise higher against the dollar at 94.92, whereas it had closed at 95.24 on Wednesday. the BSE Sensex was trading at 77,180.01, up 257.37 points or 0.33%. The index opened at 77,083.14 after closing at 76,922.64 in the previous session.READ MORE :- The rupee lower by 58 paise against the dollar to close at 95.24

On Wednesday the Indian Rupee lower by 58 paise to close at 95.24 against the US dollar, after opening at 94.66 in morning trade.At close, the Sensex was up 443.97 points or 0.58 percent at 76,922.64, and the Nifty was up 140.10 points or 0.59 percent at 24,005.85. About 2158 shares advanced, 1935 shares declined, and 165 shares unchanged.read more :- Brazil's Cotton Exports Surge

Brazil's Cotton Crop Second Largest in History; Record Exports Boost Global Market PresenceBrazil is steadily strengthening its position in the global cotton trade. According to Rabobank's June 2026 Agro-Info report, the country's cotton production for the 2025/26 season is projected to reach approximately 4 million tonnes of lint, marking the second-largest harvest in its history. Improved yields and robust export performance have enhanced Brazil's competitiveness among the world's leading cotton exporters.The report notes that while the area under cotton cultivation declined by about 2% this season, favorable weather conditions throughout the crop cycle resulted in superior yields. Consequently, the reduction in acreage did not adversely affect output, and total production remained strong.Between August 2025 and May 2026, Brazil exported approximately 3 million tonnes of lint, a 17% increase compared to the same period the previous year. Rapid exports during the second quarter further solidified Brazil's share of the global market.Despite the positive outlook for production and exports, the global cotton market continues to face challenges. USDA estimates cited by Rabobank suggest that global cotton production could decline by approximately 5% in 2026/27, while consumption is projected to rise by only 1.5%. This is expected to reduce global inventories, though the likelihood of a sharp spike in prices remains limited.The bank notes that inflation, weak consumer demand, rising logistics costs, and geopolitical tensions involving the US, Israel, and Iran are exerting pressure on the global fiber market. Additionally, potential weather-related risks associated with El Niño could impact supply and prices in the upcoming season.Domestic cotton sales also remain robust. According to IMEA, 72% of the projected production in Mato Grosso has already been sold, a figure that exceeds the five-year average. Rabobank believes that Brazil will continue to be a key player in the global cotton trade in the future, driven by improved productivity, strong exports, and competitive prices.read more :- Imported Cotton Sees Little Cost Benefit

No Significant Cost Advantage on Imported Cotton Despite Duty Removal: CAINew Delhi. According to the latest market data from the Cotton Association of India (CAI), imported cotton has not become significantly cheaper than domestic cotton, despite the temporary removal of the 11 percent import duty on cotton in India.According to the CAI, cotton prices in the Indian and global markets remain at roughly similar levels. Consequently, the decision to import by textile mills will depend not merely on price, but on factors such as fiber quality, availability, and timely supply.Data for the week ending June 26 shows that the average price of Indian cotton stood at 79.50 US cents per pound on a C&F Far East basis, inclusive of 6.00 cents per pound in freight charges. Meanwhile, the average price of the international benchmark, the Cotlook A Index, was recorded at 80.00 US cents per pound.Thus, the price of Indian cotton was lower by only 0.50 US cents per pound, or approximately ₹400 per candy (about 0.63 percent). The CAI states that this marginal difference is easily offset by costs such as insurance, port handling, inland logistics, and other additional expenses. Therefore, textile mills are unlikely to derive any significant cost advantage from importing foreign cotton.It is noteworthy that the Central Government suspended the 11 percent import duty on cotton from June 1 to October 30, 2026, with the aim of increasing raw material availability for the textile industry. However, recent market analysis indicates that this policy has had a limited impact on the actual cost of imported cotton.The CAI clarified that despite the removal of the duty, importers still incur expenses related to freight, insurance, port handling, domestic transportation, financing, and exchange rates. These additional costs completely wipe out the marginal price difference between domestic and imported cotton.The association also noted that, this week, Indian cotton traded at a premium of 8.20 US cents per pound over ICE December 2026 cotton futures. However, this spread reflects the difference between India's spot market and forward futures contracts and is not directly linked to the competitiveness of imported cotton.read more :- Cotton Crop Survey in Surajgarh