KARACHI: Business remained stable on the local cotton market on Saturday. Market sources told that quality of Phutti was affected due to the monsoon rains. Picking may also be affected due to rains.
Sources also told that the sowing area of cotton has decreased by 20 percent. The major reason for the decrease in the production of cotton is non-availability of good quality seeds and failure of concerned departments to control pest pressure.
Cotton Analyst Naseem Usman told that the Supreme Court has announced its decision on Gas Infrastructure Development Cess (GIDC), directing recovery of GIDC payables from the industries, on Thursday. The court has ordered companies to pay outstanding amount of Rs 417 billion.
Naseem said that this months 2020-21 US cotton out look includes higher beginning stocks, production, ending stocks and a decline in consumption.
He also told that ICE cotton futures rose on Friday, setting eyes on a weekly gain, as dry and hot weather in top cotton producing US state, Texas raised crop damage concerns, ahead of a much awaited US-China meeting this weekend.
Meanwhile, Federal Board of Revenue directed field formations to provide list of income tax refund cases of Rs 50 million by August 16th for immediate issuance of pending refunds under the prime minister package.
Moreover, Minister for National Food Security and Research Syed Fakhar Imam told the participants of the meeting that farmers are shifting from cotton to other crops due to low prices and to address over all imbalances in cotton industry, effective policy initiatives need to be under taken.
Naseem Usman told that 200 bales of Mongi Bangla were sold at Rs 8650 per maund. He also told that rate of cotton in Sindh was in between Rs 8250 to Rs 8300.The rate of cotton in Punjab is in between Rs 8600 to Rs 8650. He also told that Phutti of Sindh was sold in between Rs 3400 to Rs 3700 per 40 kg. The rate of Phutti in Punjab is in between Rs 3700 to Rs 4000 per 40 kg.
The rate of Banola in Sindh was in between Rs 1500 to Rs 1550 while the price of Banola in Punjab was in between Rs 1650 to Rs 1700.
The Spot Rate remained unchanged at Rs 8350 per maund. The polyester fiber was available at Rs 155 per kg.
Copyright Business Recorder, 2020
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