07012016Fri
Last update: Fri, 01 Jul 2016 09pm

Cotton and Textiles: Pakistan

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Thin business activity was witnessed on the cotton market on Thursday, dealers said. The official spot rate was unchanged at Rs 5,750, dealers said. In Sindh seed cotton prices were at Rs 3100-3300 while in Punjab phutti prices were at Rs 3100 and Rs 3350, per 40 kg, respectively, they said. In ready business, around 400 bales of cotton changed hands between Rs 4650 and 5800, they said.
Since the start of new crop (August 2016/2017) arrivals in small numbers over the past three weeks or so, the prices of new crop lint have reportedly risen by about Rs 400 per maund (37.32 Kgs). Thus new crop lint prices are said to have ranged from Rs 6200 to Rs 6400 per maund in recent past. Nearly 20,000 bales (155 Kgs) of new crop cotton have arrived since the past three weeks or so.
Prices gained more ground on the cotton market on Wednesday due to heavy rains and persistent demand by mills and spinners, dealers said. The official spot rate was higher by Rs 50 to Rs 5,750, dealers said. In Sindh seed cotton prices were at Rs 3100-3300 while in Punjab phutti prices were at Rs 3100 and Rs 3350, per 40 kg, respectively, they said.
Cotton imports are expected to remain near record-high levels in the year to July 2017, as erratic weather forces farmers in the world's fourth-biggest producer to trim area under the crop, industry officials said. A supply crunch in Pakistan, at a time when back-to-back droughts have taken a toll on output at top producer India, could boost global cotton prices from their current near 11-month highs. The two countries have already taken turns this year to buy from each other to fill shortages at home.
All Pakistan Textile Mills Association (APTMA) has expressed a great concern over the callous attitude of the government in increasing the duty on import of raw cotton from 2% to 3% which along with the additional duty of 1% has increased the incidence of total import duty to 4%. This step has been taken at a time when the textile industry is reeling from the effects of a total crop failure in the county as the production of cotton declined by almost 35 percent.
The Pakistan Industrial and Traders Association Front (PIAF) has revealed its concern over the withdrawal of the customs duty exemption on the import of 43 kinds of textile machinery parts. Front Chairman Irfan Iqbal Sheikh, who has been critical of the government step, on Wednesday said, "the government has resolved to continue duty-free import of textile machinery vide SRO 809 but withdrawn the exemption from June 25 without any prior notice.
Prices rose on the cotton market on Tuesday amid strong buying by mills and spinners, dealers said. The official spot rate picked up Rs 100 to Rs 5,700, dealers said. In both Sindh and Punjab prices of seed cotton were at Rs 3200 and Rs 3300, per 40 kg, respectively, they said. Nearly 4600 bales of cotton of new crop sold to mills and spinners at Rs 6150-6200, they said.