KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Tuesday has increased the spot rate by Rs 50 per maund and closed it at Rs 8750 per maund.
The local cotton market remained stable on Tuesday. Market sources said that after the release of the report of Pakistan Cotton Ginners Association which projects a decrease of drastic reduction of 8 lac cotton bales.
Cotton Analyst Naseem Usman told that it looks that government is not serious in increasing the cotton production of the country. He said agriculture which is the back bone of the country is severely neglected by the government. He requested the government to take practical steps for the up-gradation of the agriculture sector. He said government should focus on research on seeds and produce seeds which are genetically modified and according to the climate change.
Special Assistant to Prime Minister (SAPM) on Petroleum Nadeem Babar said on Saturday that the Federal government is committed to make the textile industry competitive and realise its export potential fully.
While talking to media at the All Pakistan Textile Mills Association Punjab office, he said the purpose of his visit to APTMA office was to understand the issues of the textile industry.
He said his meeting with the APTMA leadership and members was very constructive on the issue of Gas Infrastructure Development Cess (GIDC) and the government would ensure maximum relief to the industry within the ambit of the verdict of the apex court.
According to him, the textile industry is looking for a stable textile policy and the government is committed to bring it at the earliest to enable the industry to being in foreign exchange, create jobs and new investment in the country.
He said the government would ensure supply of gas to the industry during the winter season.
Naseem Usman told that according to the statistics released by Pakistan Cotton Ginners Association till September 15, 2020 10 lac 35 thousand bales were produced in the country which is 44.12% less as compared to the last year’s cotton production of 18 lac 52 thousand bales.
He also told that textile imports will further increase as a result of which country’s economy will further deteriorate.
According to the first estimate released by Agriculture Crop Reporting Service, the sowing of cultivated area during 2020-21 season witnessed a decline of 12% owing to major reason behind this was non availability of good quality of seeds. The reason monsoon spell had caused huge loss in Sindh especially in the districts of Sanghar, Mirpurkhas, Umer Kot, Badin, Tando Allah Yar, Tando Muhammad Khan, Hyderabad and Dadu.
The report indicated that 25% cotton crop in Sindh has been damaged quality and supply of seed cotton was affected. Picking was also affected due to rains. Similarly, the rains in cotton belt of Punjab have caused loss to cotton crop. The high moisture makes the cotton crop susceptible to Pink boll worm attacks. The pink boll worm attacks can damage around 20 to 30 percent of the crop and affect the lint quality. The farmers are advised to immediately drain out water from their fields.
He also told that this year due to torrential rains, unsuitable weather conditions, corona lockdown and especially due to the substandard seeds cotton production was badly effected.
Market sources told that after the rains the supply and quality of Phutti is improving. Sources also told that issue of availability of quality Phutti arises in the market due to which buyers were not taking interest. The availability of quality is difficult before October. The millers have started imported cotton from abroad because of the high prices of the local cotton. Picking was also affected due to rains.
Naseem further told that European Union and America boycotts products of Chinese province Sinkiang as a response China hints a decline in American products as a result of which bearish trend was witnessed in New York Cotton. China is accused of involving in forced labour.
Naseem Usman told that according to media reports like last year cotton zone is under severe attack of White Fly. Agriculture experts were of the view that if the situation remains like this then it looks difficult that cotton production target will be achieved this year.
Naseem also told that as per media reports Sindh farmers have lost nearly half-a-million bales of cotton ever since the monsoon season began and pest attacks intensified following the humid weather.
He also told that 200 bales of Bandhi, 200 bales of Daur were sold at Rs 8425, 200 bales of Moro were sold at Rs 8600, 800 bales of Khanpur, 400 bales of Saleh Put were sold at Rs 8700, 400 bales of Ahmedpur were sold at Rs 8850, 200 bales of Hasilpur were sold at Rs 8950, 1200 bales of Haroonabad were sold at Rs 8950 to Rs 9000, 200 bales of Sadiqabad, 200 bales of Faqirwali, 400 bales of Fort Abbas and 400 bales of Rajanpur were sold at Rs 9000.
He told that rate of cotton in Sindh was in between Rs 8250 to Rs 8700. The rate of cotton in Punjab is in between Rs 8600 to Rs 9050. He also told that Phutti of Sindh was sold in between Rs 3400 to Rs 4100 per 40 kg. The rate of Phutti in Punjab is in between Rs 3400 to Rs 4500 per 40 kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 1650 while the price of Banola in Punjab was in between Rs 1700 to Rs 1800. The rate of cotton in Balochistan is in between Rs 8500 to Rs 8600 while the rate of Phutti is in between Rs 4400 to Rs 5000.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 50 per maund and closed it at Rs 8750 per maund. The polyester fiber was available at Rs 153 per kg.
Copyright Business Recorder, 2020
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