02122016Fri
Last update: Fri, 12 Feb 2016 08pm

Cotton and Textiles: Pakistan

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A firm trend was seen on the cotton market on Thursday in the process of moderate business activity, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1600 and Rs 2800, in the Punjab, rates were down by Rs 50 to Rs 2000 and Rs 3000, they said. In the ready business, around 7,000 bales of cotton changed hands between Rs 47750 and Rs 5650, they said.
In the backdrop of easier cotton prices and bearish macroeconomic signals internationally, cotton prices in the domestic market were soft and remained on the subdued side on Thursday. Just like the American, Chinese and Indian cotton prices have slid towards the weak side, Pakistani lint prices have also declined.
The textile industry has rejected the support package for industrial consumers by the Ministry of Water and Power, saying the government added Rs 3.63 per kilowatt hour surcharges then adjusting the announced Rs 3 per kilowatt hour reduction in the industrial tariff with the Fuel Price Adjustment.
Lack of buying interest seen on the cotton market on Wednesday as most of participants were on the sidelines in the absence of motivating factors, dealers said. The official spot rate was unchanged at Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1600 and Rs 2800, in the Punjab, rates were down by Rs 50 to Rs 2000 and Rs 3000, they said. In the ready business, around 3,000 bales of cotton changed hands between Rs 4800 and Rs 5625, they said.
Chairman, Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA), Chaudhry Ahmed Zulfiqar Hayat, has urged Prime Minister Mian Muhammad Nawaz Sharif and Federal Minister for Commerce Engr. Khurram Dastagir to intervene and resolve issues and provide relief to the leather garments industry to boost leather garments exports.
Bears dominated the cotton market on Tuesday as prices slid owing to lack of buying interest from leading buyers, dealers said. The official spot fell by Rs 50 to Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1800 and Rs 2900, in the Punjab, rates were down by Rs 300 to Rs 2000 and Rs 3050, they said.
Damage due to rains, prevailing low cotton prices, and high cost of inputs, led to lower area under cotton cultivation necessitating import of about $4 billion worth of cotton for domestic consumption, Cotton Commissioner revealed to Business Recorder. Erratic rainfall, poor quality of seeds and drought in some cotton growing areas has resulted in low cotton output of 10.85 million bales against the estimate of 15.49 million bales.