KARACHI: The local cotton market remained stable on Wednesday. Cotton Analyst Naseem Usman told that market volume remained a little bit low.
Naseem told that Prime Minister Imran Khan has instructed the ministries of commerce and industries to ensure the provision of necessary support to the textile industry in Faisalabad. “As the Faisalabad textile industry sees a massive rise in demand and export orders,” he wrote on Twitter early Wednesday. “I have instructed the Commerce and Industries Ministries to ensure all necessary support to the textile sector to enable them to meet their growing demands.”
PM Khan also added that the textile sector represents one of the positive developments in Pakistan’s economy despite the spread of COVID 19. Known as the textile hub of Pakistan, Faisalabad currently has the operational capacity of 50,000 power looms and expects the opening of another 30,000 units. For the first time since 1990, the city is eyeing massive economic growth with the rising demand in export. The government’s recently announced decision to provide electricity to the industrial sector at reduced rates has also given the industry a boost.
Earlier this month, PM Khan had shared a television news report on his Twitter account detailing how the increased economic activity in Faisalabad led to a shortage of 0.2 million workers necessary to run the textile industry smoothly.
Prime Minister Imran Khan also approved the Textile Policy 2020-2025 According to the Textile Division of Ministry of Commerce Prime Minister Imran Khan has directed to submit the textile policy to the Economic Co-ordination Committee for approval. The policy will be sent to the federal cabinet for final approval Commerce Ministry officials said.
Mean while, ICE cotton futures fell more than 1% on Tuesday as investors booked profits ahead of the US Thanksgiving holiday after the natural fibber hit an 18-month high in the previous session.
The cotton contract for March was down 1.14 cent, or 1.5%, at 72.66 cents per lb by 12:02 p.m. EST (1702 GMT).
Prices on Monday hit 74.27 cents, its highest level since May 7, 2019, helped by vaccine hopes and a rally in gains market. “Traders are most likely liquidating longs ahead of the long holiday weekend and booking profits,” said Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group.
Cotton Analyst Naseem Usman told that Karachi Cotton Association (KCA) is extremely perturbed over the drastic decline in cotton production from 15.0 million bales to 6.00 million bales, as reported, in the current cotton season 2020-21.
The KCA understands that decline in cotton production again in cotton season 2020-21 is mainly due to (i) reduction in yield per acre (ii) cultivation of sugarcane in the areas earmarked for cotton cultivation (iii) supply of uncertified Cotton Seed & Pesticides etc. Hence, there is a considerable gap in cotton production and local mills consumption.
The local textile industry is, therefore, compelled to import raw cotton from abroad to meet its requirement of basic/primary raw material and to ensure its contribution towards achieving the target of exports fixed by the Government through exports of valued added products as well as earning much needed foreign exchange for the country.
The KCA, therefore, urges upon the Government to declare emergency and evolve necessary Plan of Action on war footing basis to increase cotton production in the coming years to meet the rising requirements of the local textile industry and leave adequate surplus for export in order to ensure the presence of Pakistan Cotton in the international market to earn valuable foreign exchange for the country through export of cotton and its value added products.
Cotton is seen to be the backbone of the exporting and related production industries like a textile in Pakistan. Pakistan stood at 4th position in producing cotton in 2012-13 with some 11 million bales but before that, the period in between 1980-90 is considered as the golden period for Pakistan regarding cotton production in which rapid growth was seen. Earlier in 2014-15 the production increased 11 per cent and holds the record of 15 million bales.
The Better Cotton Initiative (BCI) says it provided training on more sustainable farming practices to more than 2.3 million cotton farmers in 23 countries during the 2018/19 cotton season. The figures are revealed in the BCI’s annual Farmer Results report which includes data on a range of social, environmental and economic indicators over the 2018/19 cotton season. “The government will make all-out efforts to promote the textile industry and increase exports. Faisalabad is not only the third largest city in Pakistan but also Manchester in terms of textile industry. Every effort will be made to alleviate the difficulties faced by the industry.”
These views were expressed by the Provincial Minister for Industries Mian Muhammad Aslam Iqbal during a meeting with a delegation of All Pakistan Textile Processing Mills Association (APTMA). The Minister for Industries promised to provide solutions to the delegation’s proposals regarding provision of infrastructure, environmental issues and social security notices during corona.
Naseem told that 200 bales of Saleh Pat were sold at Rs 8950 per maund, 1200 bales of Mian Wali were sold at Rs 9400 per maund, 600 bales of Bahawalpur were sold at Rs 9475 to 9525 per maund, 1400 bales of Fort Abbas were sold at Rs 9600 per maund, 600 bales of Haroonabad were sold at Rs 9550 to Rs 9600 per maund, 400 bales of Faqeer Wali, 400 bales of Khan Pur, 400 bales of Sadiqabad, 800 bales of Rahim Yar Khan, 400 bales of Kot Sabzal were sold at Rs 9600 per maund and 400 bales of Liaquat Pur were sold at Rs 9675 per maund.
He told that rate of cotton in Sindh was in between Rs 8800 to Rs 9300 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9700 per maund . He also told that Phutti of Sindh was sold in between Rs 3500 to Rs 4500 per 40 kg. The rate of Phutti in Punjab is in between Rs 3600 to Rs 5000 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1650 to Rs 1800 while the price of Banola in Punjab was in between Rs 1700 to Rs 1900. The rate of cotton in Balochistan is in between Rs 8600 to Rs 9000 while the rate of Phutti is in between Rs 3800 to Rs 4900. The Spot Rate remained unchanged at Rs 9450 per maund. The Polyester Fiber was available at Rs 158 per Kg.
Copyright Business Recorder, 2020