Rains come to ginners' support

Thanks to the timely rains all over the country last week, provided ginnners an opportunity to hold the command over the prevailing situations, cotton analysts said. In the ready business, the deal was finalised at Rs 2900 and the official spot rates went up by Rs 50 to Rs 2650 as the mills were ready to oblige them (ginners), they said.
WORLD SCENARIO:
Futures in NYCE trading slightly fluctuated both ways as market operators awaited a number of USDA reports which players hope would give definite direction. The opening rate was July shed 0.44 cent to 55.45 cents and October sown 0.30 cent to 59 cants.
The futures on Monday came under small speculators selling effect and was down though players are optimistic that the release of USDA couple of reports boost the trading. Meanwhile first notice day for deliveries in July contract proceeded in a orderly manure. Traders noted dealings in the market should pick up once the USDA report is out.
They observed once the number is out they will have a good idea that what kind of cotton crop they should see in the US. The Tuesday trading sent futures high well supported other major crops boost. They also observed that cotton was also supported by technical buying, ahead of a key govt plantings report on Friday. Will the area fixed be smaller they deliberated. The govt expect to declare a total area of 11.72 million acres under cotton, marking a drop of 430,00 acres.
On Wednesday developing perception that bullish plantation report is coming in a couple of days, setting the positive pattern in trading. Players are reported that they were looking for area of 700,000 acres from March and they achieved that it was also because of problems associated with too much rains and flooding.
On Thursday futures turned slight lower as traders indulged in profit taking. The market continued to be influenced by talks about cotton acreage being reduced which would be smallest in 18 years.
On Friday the players were expecting this day and they were happy to see futures jumped to life time peak. The USDA finally came up with crop estimate at an 18-year low estimated for plantings July contract was noted at plus 1.50 cent to 58.50 and October was up 1.60 cents to 61.50 cents a pound.
LOCAL TRADING:
Inclement weather had completely dominate trading in cotton and elsewhere as a result both the buyers and the sellers had been in patient wait for better scenario change, without registering many sales and either way fluctuations in prices. Spot rate stayed but at Rs 2600 while rate in ready was not too different.
The players were completely dejected at the prevailing situation ginners were tightening their belt following the monsoon out break nearly with fury. The most needy had lifted some behind the scene said to incomplete undertaking with the sellers who turned face to show that they were not interested in making the value unfavourable for the cotton consumers.
Even the second day has not much different going on the market. And the adverse conditions for both buyers and sellers forced them to compromise with the situation. Rains continued to hit trading in Sindh and Punjab. But waited for not only change in local development but also in international depressed trading.
On Wednesday according to reports widespread rains caused total stoppage in picking and transportation of cotton from one place to another. Spot has turned sticky. The ginners with manageable stock of 50,000 bales are selling at higher rate without reporting the details of transaction.
On Thursday spot rate was raised as ginners estimated new cotton arrival was nearly impossible and spinners who have been avoiding local cotton will turn to left stock which is not huge. The rains have continued making picking and transportation both in Sindh and Punjab next to impossible. However rains are good for standing crops so far and there is no fear of any damage etc the spinners are taking no chances and grabbing all with the ginners. This is despite hope that deliveries from India and other countries will make prices soft.
On Friday the spot price rose by another Rs 25 ot Rs 2650 and in ready prices are booking to go peak breaking at Rs 3000 (presently) Rs 2900. Nearly 5000 bales changed hands in the range of Rs 2575 and Rs 2900.
On Saturday situation was not different from previous days. A deal of 2000 bales of cotton, mill to mill, at Rs 2900 was reported. There was some talk about a deal of 1000 bales , mill to mill at Rs 3000, but there was no confirmation.
HOW TO SAVE GLOBALISATION:
After six year's and after dozen of full of expectations and hope-recent G-4 meeting was declared collapsed and by all account US adamant attitude was instrumental and just few days before Bush risks losing his special trade negotiating powers. That in many people belief WTO's life may be even in peril. Why Bush dragged the issues, so important for the centuries half fed poor.
The simple logic behind lavish show up is to somehow dupe poor for every thing they have persevered-raw material-keep starvation away. This clearly shows the lust for wealth they have held so dear for centuries don't want to part with.
The WTO as is generally made to believe for the good of developing countries don't but it was taken for granted by these people that announcing again and again that a deal that ensure poor decent living.
But as reports, time and again have revealed the US and EU refuse to budge from prescribed position of "Charity". Naturally, as it seems developing countries headed by India and Brazil have thus far stood by their demand that rich should show that WTO is not a project to yield handsome return to them.
The developing countries have never kept it under carpet cover that the offer is not an investment rather it is help to them to change the moribund life in their smiles. If rich part with certain wealth, technology will remain with them and they can still dominate in most spheres of poors' life. If at all rich want to reward they must open up their heart and offer without any reservation so that real smiles could be seen on poor face.
THEY ARE LATE, BUT:
They were neglected too long or the garment makers would have perhaps not disappointed so much. They were never encouraged hence any bid to ask govt favour came undertone. That too was hardly paid due care. Their voice probably never reached Islamabad where from money used to shower for much less earning sectors. The result was forex from textile sector would stagnate around $5 billion, which was gifted to govt in Islamabad that in turn received the insignificant booty with thanks. The background of the thanks would never be known but the lady luck attached to it.
The economy never showed sign of glitter. Even today world is commenting on economy with subdued tone. The foreign invitees first used to plunge into surprise and then would fondly suggest that with basic raw material immediately switch over to value-addition. But all those under category of voicing to loudest appeal, resisted best of advises and aid coming from Islamabad.
The result is worst form is quite visible in bad economy and nagging that export sectors faced with high cost of doing business. The apparel and garment sector is rich enough to deliver the target govt is trying but is continuously faced with negative fields.
However, govt thinking seems to have reached the depth of reality. If the attitude continued, higher target earning will be achievable.
TEXTILE GETS ITS DUE:
The govt seems apologetic and even apprehensive in taking a decision to discourage subsidies and monetary assistance to the textile industry. As it now believes continuation of such measure would however damage the industrial growth and the economy in the long run. The last several decades are witness that govt, all one by one, indulged in spoon-feeding and low realisation, today will make amend hard to convinced of. One way was that plans to set up textile towns, cities, textile machinery, dyes and chemical plants on the lines of India and China, Pakistan tries to derive support from.
Agreed that some raw material is not available in the country but that does not mean leave out making dyes and chemical. The slogan that Pakistani exporters face high cost of doing business is anxious. Even those countries neither manufacturing or exporting textile products are producing and exporting textile machinery dyes and chemicals. India and China are very well prepared with the textile industry's above requirements and hence they have beaten Pakistan after January 2005.
All excuses that exporters are offering according to circles close to textile have no excuse in saying are phony. The strange part of the story was that the seminar was regarding "Infrastructure and Human Development in Textile Industry" organised by Ministry of Textile " was not attended by the minister and overall attendance was very poor.
The few participants were not happy with the turn in govt effort to build textile industry on second footing. How the govt will take the attitude as election are just three months hence. But according to sources, the TV talks and articles were not happy.
A participant ATV on Saturday said such occasion had arisen in Japan when businessmen and exporters surrendered to adverse condition govt asked them to tackle firmly. The days ahead are very important how businessmen and exporters take the serious task of tackling situation as efficiently as possible. Meanwhile first textile policy will be innocuously awaited.
TALK WHAT IS POSSIBLE:
The govt as a matter of rule issues stern warning and action but where the country stands today counters action had ever taken. At best an action that deterred repeat wrong. The absence of any such warning had emboldened people to continue with the wrongs. One or two examples will not suffice to explain wrongs had done to this economy and country. Pakistan export today are hit by high cost of doing business.
Why is it so, who is the right judge to determine where lies the fault? The exporters are working on making their products competitive. If export pick up all gain exporters, nation and the country but too much dependence on one or the other sources should have been avoided when base was being created. Instead infrastructure should be given priority to work as input. These could help in keeping cost of doing business low.
The development of infrastructure and basic raw material is still possible provided ethics replaces hypocrisy, knowledgeable sources stressed. But they said mood of confrontation is more evident than compromise with real or artificial factors. Strong will has done wonders in life. Let us watch the scenario change.
TAIL PIECE:
Reminds readers of those issues that cause high cost of business. It is nothing but hypocrisy and lust for more, while it should be according to the quality and input spent on products. The hypocrisy has ruled Pakistan for 60 years and its end is not coming in sight. What is it that investor or exporters sees his/their profit less than his expectation.
Have they ever turn to plight of Jhuggiwalas who for them, the manufactures, mills palatial buildings at the cost of minimum anybody in Pakistan could imagine. Never, those living like kings in palaces at the base of which flows the blood of the poor whose daily earning barely meets the two square meals and when they have to miss one meal they don't look towards Islamabad, but double duty to earn more of their employer don't grudge their extra earning, which by all account cant equal to those rich.
-- I. Terrific headline: Illegal Business Thriving
-- II. Massive Irregularities Found in EDF, EMDF
-- III. Gross Violation of "Reward Rules" by ST official.
-- IV. Above have continued for decades, it is but naturally, Pak is facing and will continue to face High Cost of Doing Business.