KARACHI: Bearish trend prevails in the local cotton market on Thursday.
Market sources told that quality of Phutti as well as supply of the Phutti was affected due to the monsoon rains. Another reason of significant decline in the local cotton market is because downward trend was witnessed in the international market also.
Sources also told that sowing area of cotton was decreased by 20 percent. The major reason for the decrease in the production of cotton is availability of good quality seeds and failure of concerned departments to control pest pressure.
Ginners were buying Phutti according to their needs. The picking of cotton was affected due to rains in the different parts of the country. Meanwhile, growers and farmers are fearing a loss in cotton crop owing to expected heavy monsoon rains, high temperature and whitefly attack.
Cotton Analyst Naseem Usman told that Former chairman of the standing committe on agriculture of the FPCCI and BMP Secretrty General (Federal) Chaudhry Ahmad Jawad urged the government that Pakistan should seek Chinese support in initiating a seed breeding program for major crops especially cotton and wheat, for better productivity. He also said that "cruel leaf virus" was a pathogenic virus that affected cotton plants, causing it's leaves to curl upward and growth to become stunted, resulting in significantly lower yields. Despite the fact that cotton and textiles had been a major export of Pakistan, successive governments had leaving the cotton farmers frustrated and angry. This inability was a testament to the neglect that the agriculture sector had seen in the country.
He warned that Pakistan has only one to two months to win the war against local swarms. After that more locust swarms may migrate to Pakistan from Africa.
ICE cotton futures rose on Wednesday as the dollar fell to a fresh two year low and on concerns of crop damage due to Hurricane Hanna, which hit in the United States biggest growing region, Texas over the weekend.
Naseem told that 200 bales of Tando Adam, 200 bales of Sanghar, 200 bales of Jam Sahib were sold at Rs 8100 per maund.
Naseem Usman also said that rate of new cotton of Sindh is in between Rs 8100 to Rs 8350 per maund while in Punjab the rate of new cotton is in between Rs 8200 to Rs 8300 per maund.
He told that Phutti of Sindh was sold in between Rs 3200 to Rs 3500 per 40 kg. The rate of Phutti in Punjab is in between Rs 3200 to Rs 3800 per 40 kg.
The rate of Banola in Sindh was in between Rs 1450 to Rs 1500 while the price of Banola in Punjab was in between Rs 1500 to Rs 1550.
The Spot Rate remained unchanged at Rs 8100 per maund. The polyester fiber was available at Rs 157 per kg.
Copyright Business Recorder, 2020