KARACHI: Cotton market remained dull on Friday. Market sources told that there was not much activity witnessed in the market.
Cotton Analyst Naseem Usman told that cotton crop faced three type of issues which include attack of locusts, low germination of seeds and forecast of rains in September when cotton crop is at floor level. He said rains are not good for the crop when it is at the floor level.
Naseem told that minister for agriculture Malik Noman Ahmed Langrial said in a press briefing that despite rains and attack of locust sowing of cotton was completed on more than 41 lac acers. He stressed his hope that sowing will be completed on targeted area. He claimed that due to the efforts of the government seeds of good germination level were provided to the farmers. He also said that government is taking strict action against the companies involved in the selling of substandard pesticides.
Naseem said that no trading in Phutti of new season was observed. The ginners were interested in selling of old stock. Some mills showed their interest in buying of old stock. The mills were facing liquidity crunch as well as they had the stock of imported cotton.
He also said that industry is demanding from the government to take prompt measures to facilitate the textile industry and ease the liquidity pressure, by releasing part of their long overdue refunds stuck with the government to support the textile industry in the prevailing difficult and challenging scenario amid Covid-19. He said that ginners had announced that they will not resume their operations until the government accept their demands.
Naseem Usman told that delegation of Pakistan Cotton Ginners Association lead by chairman Mian M Sohail Javed Rehmani recently met Advisor to the Prime Minister on Finance and Revenue Affairs Abdul Hafeez Sheikh and Advisor to Prime Minister on Industries and Advisor to Prime Minister on Commerce and Textile Abdul Razzak Dawood and discussed the issues faced by cotton industry.
Both the advisors assured the PCGA leadership of their support and assured them that government will take steps to resolve their issues of sales tax on Khal and buying of stock of 5 lac bales through Trading Corporation of Pakistan.
Naseem said that there are reports that condition of cotton crop in Lower Sindh is satisfactory but there are chances of severe attack of locust in Upper Sindh and Punjab.
He also said that according to the media reports Minister for National Food Security and Research Syed Fakir Imam said that federal government will collaborate with the provinces at all levels for successful implementation of Rs37 billion Agricultural Fiscal Package. The pro-farmer package include subsidy on fertilizers, cotton seed and white fly pesticides. It also includes reduced bank mark up on agricultural loans as well as sales tax subsidy on locally manufactured tractors.
Naseem Usman said that spot rate remained unchanged at Rs8400 per maund. The rate of cotton in Sindh and Punjab is in between Rs6500 to Rs8400 per maund. The polyester fiber was was available at Rs155 per kg.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 04-06-2020
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37.324 kg 8,400 160 8,575 8,575 NIL
Equivalent
40 kgs 9,002 171 9,190 9,190 NIL
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