KARACHI: Traders are hopeful that trading activity on cotton market will fully resume in the second week of June. Market sources told that cotton market remained dull on Saturday but hopefully business will fully resume after the announcement of budget on June 12. Cotton analyst Naseem Usman told that recently a 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. Advisor on finance Abdul Hafeez Sheikh said that government will exempt Khal from 5 percent sales tax in the upcoming budget. He also said that decision regarding buying of stock of 5 lac bales through Trading Corporation of Pakistan will be taken later after talking on consideration of the ground realities. Chairperson FBR Nosheen said that refund will be released to ginners as early as possible. She also said that no tax notice will be issued to ginners adding that they will pay only one percent final tax. On the issue of waiving off mark up of two quarters on the loans of ginners additional secretary finance said that the issue will be raised with the Stake Bank of Pakistan. 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. 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 Fakhir 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 Rs 8400 per maund. The rate of cotton in Sindh and Punjab is in between Rs6500 to Rs8400 per maund. The polyester fiber was available at Rs155 per kg.
===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 05-06-2020
===========================================================================
37.324 kg 8,400 175 8,575 8,575 NIL
Equivalent
40 kgs 9,002 188 9,190 9,190 NIL
===========================================================================
Comments
Comments are closed for this article.