KARACHI: The local cotton market remained stable on Thursday. Cotton Analyst Naseem Usman told that market volume remained low. Naseem told that the cotton production in the country witnessed an alarming decline of 2.8 million bales, according to a report released by Pakistan Cotton Ginners Association. The report says that more than 4 million bales were produced in the country which is 37.59 % percent less as compared to more than 7.4 million bales produced till November 30 last year.
Prime Minister's Advisor on Commerce and Investment, Abdul Razak Dawood on Wednesday said that exports in November 2020 have been the highest during the last 10 years.
"On further examination of our November figures for export of goods, it is pleasing to note that exports in November 2020 have been the highest during last 10 years," said Dawood in a tweet post, while sharing figures from the Pakistan Bureau of Statistics.
"This indicates a rising trend in our exports and I hope that with efforts of our exporters, this trend will continue," he added.
Naseem also told that in his tweet Advisor for Commerce & Investment Abdul Razak Dawood said that "The ECC today has approved the removal of Regulatory Duty on Cotton Yarn. This will facilitate the exports of apparel sector. This is in line with our policy of getting more value added exports. The ECC decision will now go the Cabinet for ratification, after which it will be notified,".
National Electric Power Regulatory Authority (NEPRA) has reduced the rate of electricity by Rs 4.96 per unit for industrial consumers. After reduction industrial consumers will get electricity at Rs 8 per unit. These rates will be applicable for all the industrial consumers of the country including Karachi.
Moreover, ICE cotton futures eased in choppy trade on Wednesday, as broad weakness in grains markets offset support from hopes for higher demand driven by a swifter vaccine-fuelled economic recovery with the focus turning to a federal export sales report.
The cotton contract for March was down 0.08 cent, or 0.1%, at 72.11 cents per lb by 12:27 p.m. EST (1727 GMT). Earlier in the session, prices slipped to their lowest since Nov. 18 at 71.35 cents.
"Cotton market is following the grains market and grains market bounced back a bit and cotton is doing the same thing," said Rogers Varner, president of Varner Brokerage in Cleveland.
Meanwhile, Prime Minister Imran Khan on Monday gave in principle approval for establishment of Exports Development Board (EDB) for promotion of the country's exports. The board to be headed by the prime minister himself would have representation from all the stakeholders of export sector.
The board meeting would be held every month, wherein, exporters would be invited to resolve their problems. The announcement of board setup came following a meeting of the adviser on commerce with the prime minister.
All Pakistan Textile Processing Mills Association, (APTPMA) thanked the PM Imran Khan for approving a progressive and innovative textile policy 2020-25 and congratulated Advisor for Commerce & Investment Abdul Razak Dawood and Finance Adviser Dr Abdul Hafeez Sheikh on approval of the five year textile policy despite enormous odds, Covid-19 pandemic, and resource constraint, which is a healthy augury for textile industry of Pakistan and said it is a right step in the right direction.
Prime Minister Imran Khan also sought proposals from industrialists on corporate farming to increase productivity of agriculture sector. The prime minister was talking to a delegation of leading industrialists who called on him at the Prime Minister's Office.
The prime minister, while talking to the delegation, said that proposals suggested by industrialists are being incorporated by the government in decision-making as prosperity of the country is linked with the development of the industrial sector.
The members of delegation said foreign exchange reserves have increased. According to them, an increase in exports and acceleration in construction activities despite the challenge of coronavirus had positive impacts on the economy. They acknowledged that the current account deficit has become positive due to the government's efforts.
Naseem also told that the Cabinet Committee on Energy (CCoE) is said to have approved supply of electricity to textile sector at cents 7.5/kWh for two months from December 1, 2020 subject to closure of captive power plants.
The decision was taken during discussion, on natural gas load management during 2020-21. In December 2020, total consumption will be 2,126 MMCFD whereas shortfall will be around 61 MMCFD; in January 2021, consumption will be 2,321 MMCFD and expected shortfall will be 250 MMCFD. The CNG sector and captive power plants will face complete closure during next two months.
Petroleum Division informed the CCoE that recently the ECC has approved recovery of RLNG diversion cost, which is now with OGRA for implementation, expecting that with the implementation of approved mechanism, the recovery of accumulated amount/diversion cost will commence.
Naseem told that 1400 bales of Khanpur were sold at Rs 8600 to Rs 880 per maund, 1200 bales of Rahim Yar Khan were sold at Rs 9550 to Rs 9600, 800 bales of Shujaabad were sold at Rs 9200 to Rs 9550, 200 bales of Sadiqabad were sold at Rs 9550, 400 bales of Liaquatpur were sold at Rs 9550, 800 bales of Fort Abbas were sold at Rs 9400 to Rs 9425, 200 bales of Chistian were sold at Rs 9375 to Rs 9390, 1000 bales of Yazman Mandi were sold at Rs 9375 to Rs 9390, 1000 bales of Faqeerwali were sold at RS 9325 to Rs 9350, 400 bales of Haroonabad were sold at Rs 9275 to Rs 9325, 400 bales of Hasilpur were sold at Rs 8950 to Rs 9050.
He told that rate of cotton in Sindh was in between Rs 8600 to Rs 9500 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9600 per maund. He also told that Phutti of Sindh was sold in between Rs 3200 to Rs 4800 per 40 IKg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 5100 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1300 to Rs 1700 while the price of Banola in Punjab was in between Rs 1650 to Rs 2000. The rate of cotton in Balochistan is in between Rs 8600 to Rs 9200 while the rate of Phutti is in between Rs 4200 to Rs 5000. The Spot Rate remained unchanged at Rs 9450 per maund. The Polyester Fiber rate was increased by Rs 2 per kg and was available at Rs 162 per Kg.
Copyright Business Recorder, 2020