KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Monday has decreased the spot rate by Rs 100 per maund at Rs 9900 per maund. The local market remained bearish on Monday.
Market sources told that mills were involved in cautious buying due to which the trading volume remained low.
Cotton Analyst Naseem Usman told that bearish trend was witnessed in the international cotton market due to the expected new wave of COVID 19.
Meanwhile, Pakistan Hosiery Manufacturers & Exporters Association said that huge export orders are coming to Pakistan despite COVID 19. This is a golden opportunity to achieve a milestone in exports.
However, cotton yarn-basic raw material is unavailable for apparel and home textile sector in local markets which may lead to decline in textile exports. Spinning sector is allowed duty free import of cotton while apparel and home textile sector are not allowed duty free import of cotton yarn which is discrimination. PHMA demands that customs and regulatory duty on import of cotton yarn should be abolished.
On the other hand All Pakistan Textile Mills Association (APTMA) in a press release reiterates that there is no shortage of yarn in the country. In fact, the import of cotton yarn in the first quarter of FY 2020 last year was 1,1047 tons, while it rose to 1,3976 tons in the first quarter of FY 2021, showing an increase of 27%. Similarly Yarn Exports have also reduced significantly while production of Yarn in the country has increased signifying enhanced supply of yarn to further processing and value addition in-country. The import and export data of yarn is attached herewith.
The export-oriented sectors of Pakistan have shown extraordinary growth and exceeded targets, outperforming regional players. In September 2020, there was 11.3% surge in textile exports, leading to the impressive export volume of $3,469.5 million in July-September (FY2020-21). Prime Minister Imran Khan's efforts to promote export-led economic growth have proved instrumental in this regard.
Cotton Analyst Naseem Usman told that experts have raised the question is Pakistan travelling towards the end of its cotton production? It seems so if the last few years of dropping acreage, dipping per-acre yield, sinking national production and climatic impact are any indication. The quality of the yield is an entirely different topic.
The current year's statistics further bear testament to this theory. According to the Pakistan Cotton Ginning Association (PCGA), the arrival of cotton by October 18 has fallen by a whopping 39.24 per cent (2.6 million bales against 4.4m last year). The official expectation for this year is 8.5m billion bales against a target of 10.89m. On its part, the PCGA believes that last year's production was 8.5m bales and not 9.1m bales as claimed by the Pakistan Economic Survey. The ginners think that the country may end up producing 6.5m to 7m bales - far less than half of the requirement of the industry.
The ginners think that the country may end up only producing 6.5m to 7m bales this year - far less than half of the requirement of the industry
In its tweet Advisor to Prime Minister on Commerce Abdul Razak Dawood said "Apparel is the engine of growth in the textile sector and availability of yarn at competitive prices is the pillar of strength. All sectors have to play their respective roles to maximise overall exports,"
In another tweet Razzak said "MOC held a meeting of stake holders of spinners and apparel manufacturers to discuss availability of yarns and their prices. In light of rising prices MOC is considering reducing duties on various yarns and preparing a summary for the ECC".
Naseem told that 1000 bales of Khairpur were sold at Rs 9200 per maund, 600 bales of Khanpur were sold at Rs 10,200 to RS 10,250 per maund, 400 bales of Rahim Yar Khan were sold at Rs 10,250, 400 bales of Donga Bonga were sold at Rs 10,200 per maund, 2200 bales of Haroonabad were sold at Rs 10,000 to Rs 10,200 per maund, 1200 bales of Faqeerwali were sold at Rs 10,000 to RS 10,150 per maund, 2000 bales of Fort Abbas were sold at RS 10,000 to RS 10,150 per maund, 200 bales of Ahmedpur East were sold at Rs 10050 per maund, 600 bales of Mianwali were sold at Rs 9900 to RS 10,000 per maund, 200 bales of Dharanwala were sold at Rs 10,000 per maund, 400 bales of Shadan Lund were sold at Rs 9850 per maund, 600 bales of Tunsa Shareef were sold at RS 9600 to Rs 9650, 800 bales of Layyah were sold at Rs 9500 per maund, 400 bales of Fazilpur were sold at RS 9600 per maund and 200 bales of Chistian were sold at Rs 9850 per maund.
He told that rate of cotton in Sindh was in between Rs 8300 to Rs 9300. The rate of cotton in Punjab is in between Rs 9400 to Rs 10,000. He also told that Phutti of Sindh was sold in between Rs 3700 to Rs 4600 per 40 kg. The rate of Phutti in Punjab is in between Rs 4000 to Rs 5000 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 1900 while the price of Banola in Punjab was in between Rs 1700 to Rs 2000. The rate of cotton in Balochistan is in between Rs 9500 to Rs 9600 while the rate of Phutti is in between Rs 4700 to Rs 5100.
The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs 100 per maund and closed it at Rs 9900 per maund. The Polyster Fiber was available at Rs 158 per Kg.
Copyright Business Recorder, 2020
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