KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Monday has increased the spot rate by RS 100 per maund and closed it at RS 9950 per maund. The local cotton market remained bullish on Monday. Market sources told that trading volume is satisfactory.
Cotton Analyst Naseem also told that this year especially 200,000 bales will be imported from Afghanistan. Moreover, Phutti in abundance is also coming from Afghanistan. Sources told that Phutti equillant to 10,000 bales has reached Pakistan. Phutti in few factories of Dera Ghazi Khan were coming from Afghanistan but this year Phutti in abundant quantity from Afghanistan has arrived in ginning factories of Punjab, Sindh and Balochistan. Seed companies are buying banola of Afghani cotton from ginners which will be grown locally in coming season.
Meanwhile, Chairman All Pakistan Textile Mills Association (APTMA), Adil Bashir has urged the Federal government to stop FBR from harassment of taxpayers and withdraw all FIRs lodged against leading genuine and bonafide manufacturers and exporters.
In a statement he lamented that Prime Minister of Pakistan was all out to support the export-oriented sectors of Pakistan but some vested interests are bent upon frustrating the intents of the Government by harassing exporters and hindering the unprecedented growth in exports.
According to him, exports from Pakistan have registered an impressive uplift over the last few months due to unflinching support by the Prime Minister but the pace of potential upsurge in exports may be retracted by unfriendly attitude of certain government functionaries.
Naseem told that It's that time of the month again. Pakistan Bureau of Statistics monthly import report card has been released, and a cursory review shows that the commodity import momentum is slowing down. Is it good news?
Yes, as far as the current account position is concerned. Forecast of shortfall in domestic crop of as much as 5-6 million bales meant that the supply gap had to be filled by imports. The incremental imports (over historic average) would have added at least $0.75 billion in import bill, trimming the net exports by textile sector.
Naseem further told that Cotton Association of Pakistan has released disturbing data that indicates a decline of 35.67 percent in production this year - from 7 billion bales till 15 December 2019 to 5 million bales in the comparable period of 2020. This woefully poor performance was evident throughout the production chain with Cotton Ginners Association revealing that 384 ginning factories were operating this year compared to 424 last year, their stocks declined to 800,000 this year as opposed to 1.2 million bales last year and 15 local textile mills bought 35.06 percent less this year in comparison to the comparable period of last year.
Naseem Usman 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 5 million bales were produced in the country which is 35.67 percent less as compared to more than 7 million bales produced till December 15 last year.
According to the statistics released by Pakistan Cotton Ginners Association till December 15 local textile mills bought more than 4.1 million bales which is around 35.06 percent less as compared to the last year buying of more than 6.5 million bales during this period. The ginners had the stock of more than 800,000 bales which is 35.06 percent less as compared to the last year stock of more than 1.2 million bales.
According to the report 384 ginning factories are running as compared to 424 ginning factories which were working last year during this period.
In Punjab 2.9 million bales were produced which is 1.4 million bales less as compared to the last years production of 4.4 million bales. In Sindh 2.8 million bales were produced which is 1.3 million bales less than the last years production of 3.3 million bales.
Naseem Usman while commenting on the report said that this year Pakistan's textile sector is running on full capacity due to which the demand of cotton may reach more than 15 million bales. He told that around 6 million bales will be produced in the country around 7 million bales of around 6 billion dollars will have to be imported from abroad in order to full fill the demands of the local industry.
Naseem told that 1600 bales of Rahim Yar Khan were sold at Rs 10,300 to RS 10,500 per maund, 1000 bales of Khan Pur were sold at RS 10,300, 2200 bales of Shuja Abad were sold at Rs 10,500, 200 bales of Haroonabad were sold at Rs 10,000, 600 bales of Marrot were sold at Rs 10,00 to Rs 10,200, 200 bales of Ahmed Pur East were sold at Rs 10,000 and 200 bales of Dharan Wala were sold at Rs 10,000.
He told that rate of cotton in Sindh was in between Rs 9000 to Rs 10,000 per maund. The rate of cotton in Punjab is in between Rs 9500 to Rs 10,000 per maund. He also told that Phutti of Sindh was sold in between Rs 4000 to Rs 4700 per 40 kg. The rate of Phutti in Punjab is in between Rs 4000 to Rs 5200 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1350 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 9500.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by RS 100 per maund and closed it at RS 9950 per maund. The price of Polyester Fiber was increased by Rs 5 per kg and was available at Rs 173 per Kg.
Copyright Business Recorder, 2020
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