KARACHI: The local cotton market on Thursday witnessed a bullish trend as buyers and textile mills took extraordinary interest in the buying of new cotton. Market sources told that textile mills and exporters were taking interest in the buying of both old and new stock of cotton.
Cotton Analyst Naseem Usman told that 400 bales of new cotton of Tando Adam were sold Rs8350, 200 bales of Burewala sold at Rs8750 and 400 bales from Burewala were sold at Rs8900, 200 bales of Hyderabad were sold at Rs8350 and 200 bales of Sanghar were sold at Rs8350.
The State Bank of Pakistan in a meeting of its policy committee decided to slash country's policy rate by 100 points to seven percent. It is pertinent to mention here that Pakistan's Policy rate have fallen from 13.25% to 7% in the last 100 days.
Meanwhile All Pakistan Textile Mills Association in its letter written to Advisor to Prime Minister on Commerce, Textile and Investment claimed that textile exports can reach 3 billion dollars if the government will provide them energy on competitive rates, decrease the rate of tax and refunds should be released timely.
Naseem Usman told that Senate Committee on Finance recommended that zero rating for textile sector should be restored, tax rate of textile should be reduced to 4% from 17%, sales tax should be abolished from cotton seed and oil cake, budget for locust control should be increased from Rs4 billion to Rs8 billion. The committee has sent all the suggestions to National Assembly for amendments in the budget 2020-21.
Nassem said that The Towel Manufacturers Association of Pakistan draw the attention of the prime minister as well as the authority concerned to the fact that inefficiency of different entities put a financial burden on the consumers and on the national kitty.
During the tumult of COVID-19, the industrial sector is the main victim of the situation. Nevertheless, the industrial sector is the only sector that can reduce the effects of COVID-19 on the national economy.
Despite the gloomy economic scenario, the government has imposed different types of charges through utility bills i.e. fuel adjustment charges, additional fuel adjustment GIDC, ISPA charges etc. on the export industry. Now, the government is going to make amendments to NEPRA Act to pass the cost of inefficiencies of the power sector on to the consumers through imposition of the debt servicing surcharge (DSS).
The Towel Manufacturers Association of Pakistan urged the government not to impose unjustified DSS charges on the industry, especially the export-oriented industry.
Naseem said that Ismail Suttar President of the Apex Body of Manufactures, The Employees Federation of Pakistan (EFP) has said that the closure of industries and economic activities is not a solution to stop the spread of coronavirus, it would be rather economically suicidal. More important is to take protective and precautionary measures in operating business to ensure the safety of people and continuity of business.
Naseem said that due to the efforts of office bearers of Pakistan Cotton Ginners Association it is hoped that issues related to cotton growers, ginning industry and oil mills will be solved soon.
He further said that it is expected that rains will start from June 23 and it will continue till July 2. The rains will be good for the cotton crop.
Naseem Usman also said that rate of new cotton of Sindh and Punjab is in between Rs8350 to Rs8900 per maund. The rate of old cotton is in between Rs7700 to Rs8500 per maund.
He told that Phutti of Sindh was sold in between Rs4000 to Rs4350 per 40 kg. The rate of Phutti in Punjab is in between Rs4400 to Rs4500 per 40 kg.
The rate of Banola is Sindh was in between Rs1900 to Rs2000 while the price of Banola in Punjab was in between Rs2100 to Rs2200.
He also said that Spot Rate remained unchanged at Rs8000 per maund. The polyester fiber was available at Rs155 per kg.
Copyright Business Recorder, 2020
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