KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Monday has decreased the spot rate by Rs 200 per maund and closed it at Rs 9400 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 cotton stockpiling fell a massive 43 percent to 3.45 million bales till October 31, raising concerns that the country would have to import at least 7.0 million bales worth $3 billion to fulfil domestic demand, industry officials said.
Cotton arrivals declined 43.38 percent to 3.45 million bales against 6.09 million bales in the same month last year, as heavy monsoon along with sowing substandard seeds took a toll on total yields, said the last report released by Pakistan Cotton Ginners Association (PCGA).
Punjab and Sindh showed declines of 45 percent and 41 percent respectively in cotton production during the period under review. Both provinces had stocked 1.7 million bales each till the end of October. Last year, Punjab and Sindh stocked 3.16 million and 2.92 million bales, respectively.
Karachi Cotton Brokers Association Chairman Naseem Usman said that a decline of 2.6 million bales in cotton arrivals was a point of concern.
He also told that despite the fact that cotton is an important cash crop, which contributes significantly to the national economy by providing raw material to the local textile industry, as well as cotton lint for export, policy makers failed to introduce quality seeds in the country. Currently, 864,245 bales are in stocks with ginners, down 47 percent, compared to 1.62 million bales last year.
Naseem told that 3000 bales of Khairpur were sold at Rs 8800 to Rs 9000 per maund, 1000 bales of Rohri were sold at Rs 9000 per maund, 1400 bales of Haroonabad were sold at Rs 9550 per maund, 200 bales of Noopur Nuranga were sold at Rs 9500 per maund, 200 bales of Adilpur were sold at Rs 9400 per maund, 800 bales of Fort Abbas were sold at Rs 9500 per maund, 200 bales of Marrot, 200 bales of Donga Bonga were sold at Rs 9550 per maund, 400 bales of SDK were sold at Rs 9600 per maund.
He told that rate of cotton in Sindh was in between Rs 8700 to Rs 9400 per maund. The rate of cotton in Punjab is in between Rs 9200 to Rs 9600. He also told that Phutti of Sindh was sold in between Rs 3200 to Rs 4600 per 40 Kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 4700 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 1800 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 9200 to Rs 9300 while the rate of Phutti is in between Rs 4700 to Rs 5300.
The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs 200 per maud and closed it at Rs 9400 per maund. The Polyester Fiber was available at Rs 158 per Kg.
Copyright Business Recorder, 2020
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