AGRI SHOP

Farming News


Slide in American cotton prices leaves Indian importers in jitters

So far about 18 lakh bales of cotton import contracts have been made of which shipments for about 7 lakh bales have already arrived (file photo) - SAM PANTHAKY

Having inked contracts at much higher rates earlier, importers here are staring at a loss

The continued stand-off between the US and China over trade tariffs has created uncertainty in the Indian cotton market. After international cotton prices slipped by over 16 per cent over the past month, Indian cotton importers are staring at a loss and are looking to rework import contracts.

Even as trade sources revealed that some import contracts, which were made at a high price of about 85 cents, may get cancelled or reworked, the uncertainty over a possible trade truce between the US and China is keeping them jittery.

According to trade estimates, so far about 18 lakh balesof cotton import contracts have been made of which shipments for about 7 lakh bales have already arrived.

“Import contracts for the remaining 11 lakh bales were entered into at a very high rates of about 80-85 cents. The prices have corrected to about 69 cents now. In this scenario importers may also look to either cancel the contracts or rework the deals. There is extreme panic in the market at present due to uncertainty. We don’t know where the market trend will move,” said Atul Ganatra, President, Cotton Association of India.

US cotton futures for July contracts were weak on Tuesday, trading at 65.70 cents per pound. A month ago, the prices quoted as much as 79 cents.

Importers worried

However, compared to international cotton prices, Indian cotton has corrected by only about 5 per cent from ₹46,500 a candy (each of 356 kg) to ₹44,500 a candy.

Companies engaged in importing cotton expressed concerns on a possible loss from the cancellation of the contracts. “Indian traders are afraid to cancel the contracts because they don’t have that hedging mechanism (to protect the price difference). Either they will have to go for arbitration or they will have to pay the difference. Then there is no point in cancellation of import contracts. Unless there is a hedging system to protect the losses, they can’t afford to do it,” said a senior official from a company engaged in import and export of cotton.

The current scenario, according to traders, is in complete contrast to the sentiment following a lower crop outlook by the CAI. Earlier this month, CAI had projected India’s cotton output for the year 2018-19 at 315 lakh bales, about 6 lakh bales lower than its earlier estimate last month. Last year, the total cotton crop stood at 365 lakh bales.

The United States Department of Agriculture (USDA), too, has reduced its Indian cotton crop estimate for the crop year 2018-19 following a weak monsoon last year and crop damage in key growing regions. From its earlier crop estimate of about 345 lakh bales, the USDA has now projected India’s cotton crop at 325 lakh bales.

“The USDA has made this reduction in their latest estimate, released on May 10, after extensive deliberations with the Cotton Association of India and also after considering all aspects and the prevailing situation in India,” Ganatra said.

Farming News

  • IMD records 75.9 millimetres of rainfall from March 1 to May 15 Pre-monsoon rainfall...
  • The onset of the monsoon over Kerala is being delayed mainly by an ongoing suppressed...
  • Satellite pictures on Friday evening showed thunderstorm activity building up over...
  • With water storage in dams dropping to a “critical” level, the Centre...
  • Incentivising farmers who grow the extra long staple variety could help increase...
  • Robots are taking over farms faster than anyone saw coming. The first fully autonomous...
  • As India’s massive election enters its final stage, Prime Minister Narendra...
  • The monsoon is likely to hit Kerala on June 4, three days later than the normal onset...
  • Tur prices in the major markets of Maharashtra and Karnataka have moved up by about ₹1,000...
  • The National Bank for Agriculture and Rural Development (NABARD) on Monday announced...
  • Activists say the fight to establish farmers’ right to seeds will continue The...
  • It takes 2,515 litres of water to produce a kilogram of sugar in Maharashtra, according...
  • At a time when the capacity utilisation levels of textile spinning mills have been...
  • It is unclear what will prompt gold to decisively break above the psychological $1,300...
  • The US cotton output may swing back to the highest since 2005. The 2019-2020 US...
  • KOCHI: Shrimp production in the country, after showing a consistent growth in the...
  • S&P Dow Jones Indices is planning to launch an index for the global dairy industry...
  • The outbreak of Fall armyworm has affected maize cultivation in 122 villages. Mizoram...
  • Linking formal credit with insurance can improve financial inclusion, says expert Throwing...
  • S&P Dow Jones Indices is planning to launch an index for the global dairy industry...
  • The Cashew Export Promotion Council of India (CEPCI) has raised serious concerns...
  • Parts of Andhra Pradesh and Rajasthan have faced four droughts in the last four years...
  • The Haryana government has picked up samples of suspected Bt brinjal crop from a...
  • Shipments of basmati rice, the largest product in the country’s farm-export...
  • Greencover Overseas, a private enterprise, helps farmers in cultivating new varieties...
  • Vinson Kurian / PTI Cyclone Fani, an extremely severe cyclonic storm, barrelled...
  • 18 per cent water left in dams; 8.5 lakh cattle in fodder camps Drought has intensified...
  • Kochi: A group of paddy farmers in Kerala has taken the initiative to form an association...
  • LONDON: Experts from the UK and India have concluded that harnessing smartphone technology...
  • Take up farming, long considered a man’s job “You cannot fight drought...
  • With no govt support, residents of border villages lead a miserable life Hajeeb...
  • The government has set an ambitious foodgrains target of 291.1 million tonnes (mt)...
  • NEW DELHI: The central government has disbursed around Rs 11,000 crore among 31 million...
  • AHMEDABAD/BENGALURU, APRIL 23 In the evolving agri-business and food sector, despite...
  • MUMBAI: State-owned online Metal Scrap Trade Corporation (MSTCNSE -1.30 %) is in...
  • Sporadic rainfall accompanied by strong winds across Punjab for two consecutive days...
  • National Bulk Handling Corporation (NBHC) has come out with its final report on Rabi...
  • ndia's money-losing sugar millsNSE -0.08 % have run up a record $4.38 billion...
  • A mid stories of agrarian crisis everywhere, Anubhav Das has a happy tale to tell....
  • The government has allowed only dal millers to import the annual permissible quota...
  • Untimely rains and hailstorms triggered by westerlies moving in from the Mediterranean...
  • The National Dairy Development Board (NDDB) has informed that the Food Safety &...
  • National Bulk Handling Corporation (NBHC) has come out with its final report on Rabi...
  • The Odisha government’s much-publicised KALIA scheme, offering financial aid...
  • The Small Tea Growers’ Association of Southern India (STASI) has started a...
  • KOCHI: The Central Marine Fisheries Research Institute (CMFRI) and the Indian Space...
  • Polling began on Thursday morning in 91 constituencies spread across 18 states and...
  • At a casual glance, it would be difficult to say that most parts of Bihar are experiencing...
  • ZOGBODOMEY (BENIN), APRIL 10 The back and forth of lorries and pick-up trucks...
  • The Cotton Association of India (CAI) has estimated exports for the season 2018-19...
  • Marathwada is facing one of the severe droughts, with just 5.68 per cent live storage...
  • NEW DELHI: The ruling Congress in Madhya Pradesh, Chhattisgarh and Rajasthan is betting...
  • LUDHIANA/BATHINDA: It has been a long journey for Shankar Lal in many ways. The 60-year-old...
  • PUNE: Farmers in Maharashtra have reasons to worry as the first advance estimates...
  • PUNE: Farmers in Maharashtra have reasons to worry as the first advance estimates...
  • PUNE: Farmers in Maharashtra have reasons to worry as the first advance estimates...
  • New Delhi: Exports of non-basmati rice from India have come to a standstill, with...
  • New Delhi: Exports of non-basmati rice from India have come to a standstill, with...
  • New Delhi: The government has fast-tracked insurance payments to farmers and made...
  • The Indian basmati rice industry is on the verge of clocking its highest ever exports...
  • NEW DELHI: Ten thousand smallholder farmers in Andhra Pradesh are set to benefit...
  • NEW DELHI: Ten thousand smallholder farmers in Andhra Pradesh are set to benefit...
  • NEW DELHI: More than 20 million additional farmers will get two instalments of Rs...
  • A mid stories of agrarian crisis everywhere, Anubhav Das has a happy tale to tell....
  • India cannot achieve 9-10 per cent GDP growth without revolution in the farm sector,...
  • Pune: Kaveri Seeds, today announced the commencement of its corn cob drying facility...
  • Pune: As the uncertainty about UK's exist from the European Union (EU) on March...
  • West Bengal government is making special arrangements to enable farmers to sell surplus...
  • The black coffee Omana Ravi had kept on the stove for her son, Santhosh, kept simmering...

Social Responsibility

  • Corporate Social Responsibility

    20-Oct-2016   Admin

    Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society....

Associated Partners