07282016Thu
Last update: Thu, 28 Jul 2016 11pm

Cotton and Textiles: Pakistan

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Prices went up sharply on the cotton market on Wednesday in the process of hectic buying, dealers said. The official spot rate rose by Rs 100 to Rs 6350, they said. Seed cotton prices in both Punjab and Sindh went up by Rs 150 to Rs 3300-3350, they said.
Ministry of Textile Industry has estimated a loss of Rs 22 billion to cotton growers during 2015-16, after ginners and downstream industry denied them due price, it is learnt. Official sources revealed to Business Recorder that due to lack of quality-based pricing system and non-practising of the cotton standardisation system Pakistani raw cotton is being traded at an average discount of 7 cents per pound in the international market.
Chairman, Pakistan Tanners Association (PTA), Gulzar Firoz has urged Commerce Minister to look into the decline of leather exports and meet PTA delegation on urgent basis to take prompt decisions to arrest the declining trend of exports.
Thanks to the fall in arrivals of seed cotton from the Punjab station, the rates recovered, albeit modestly, on the cotton market on Tuesday, dealers said. The official spot rate picked up Rs 50 to Rs 6,250, dealers said. In both Sindh and Punjab, seed cotton prices were at Rs 3000 and Rs 3200 per 40 kg, respectively, they said. In ready business, around 8,000 bales of cotton changed hands between Rs 6450 and Rs 6700, they said.
Federal Minister for Planning, Development and Reform Ahsan Iqbal has directed the authorities concerned to establish a quick response system to help farmers dealing with the cotton crop related diseases. Federal Minister said that cotton is the mainstay of our agriculture and textile industry and has a vital role in increasing economic growth and development. He said that drop in per acre yield of cotton is a matter of serious concern.
Prices remained under pressure on the cotton market on Monday in arrivals of seed cotton improved in the process of trading, dealers said. The official spot rate continued falling trend, losing more Rs 200 to Rs 6,200, dealers said. In both Sindh and Punjab, seed cotton prices were at Rs 3000 and Rs 3200 per 40 kg, respectively, they said. In ready business, around 20,000 bales of cotton changed hands between Rs 6400 and Rs 6500, they said.
Despite better quality, Pakistan cotton is incapable of getting an attractive price in the world market mainly due to non-branding. Traders said that the quality of Pakistani cotton is much better than that producing in other countries; however non-branding results in lower price in the international market. Whereas USA, India and other cotton producing countries are getting better price for their branded cotton. Pakistan's cotton industry couldn't introduce its own brand in last 60 years.