KARACHI: The upward trend in the prices of cotton remained continued. Bullish trends remained in international cotton markets. Positive strategy should be evolved for increasing the production of cotton. What is the role being played by Cotton Crop Task Force established by prime minister of Pakistan? Incentives should be given to the Pakistani farmers and ginners on the pattern of India for increasing the production of cotton.
In the local cotton market during the last week bullish trend was witnessed due to the satisfactory interest shown by the big textile and spinning mills in the buying of quality cotton and due to the getting of good price of cotton by the ginners. The rate of cotton increased by Rs 200 to Rs 400.per maund due to increase in buying by mills because of the decrease in the availability of good quality cotton. On the other hand increasing trend in the prices of cotton internationally also affects the local cotton market.
The bullish trend was witnessed in the rate of New York Cotton under the influence of which bullish trend was witnessed in the traditional cotton producing countries. The demand of polyester fibre is increasing other than cotton. Majority of the mills is producing PC yarn and increase in the rate of polyester fibre is creating difficulties for them.
The rate of cotton in Sindh is in between Rs 9200 to Rs 10400 per maund. The rate of Phutti is in between Rs 3800 to Rs 4700 per 40 kg. The rate of Banola is in between Rs 1600 to Rs 1900. The rate of cotton in Punjab is in between Rs 9800 to Rs 10600 per maund. The rate of Phutti is in between Rs 3800 to Rs 5400 per 40 kg. The rate of Banola is in between Rs 1700 to Rs 2200. The rate of cotton in Balochistan reached at the highest level of Rs 11000 per maund. The rate of cotton of Balochistan is in between Rs 9300 to Rs 9700 per maund. The Phutti which was left in limited quantity was available at Rs 4800 to Rs 5500 per 40 kg.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 250 per maund and closed it at Rs 10200 per maund which is at in the season.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that increasing trend remained continued in the international cotton markets. The Rate of Promise (Waday ka Bhao) of New York Cotton witnessed bullish trend. The rate reached at the highest level of 78 American cents per pound. Although according to the weekly export report of USDA the export shows a decline of 30 % and the rate of dollar decreased while the rate of cotton is increasing despite Christmas holidays, bank closings and COVID 19.
The rate of cotton is increasing in Brazil, Argentina and Central Asia while the increasing trend in the prices of cotton in India is a little bit more. Chairman Cotton Association of India Atul Ganatra in a TV interview said that cotton production in India is expected to be three crore 70 lac bales in 2020-21. Cotton Cooperation of India is giving monetary benefits to the farmers and ginners. The monetary help played a pivotal role in increasing the production of cotton in India but it is observed that in Pakistan cotton crop was continuously ignored. Positive steps should be taken to increase the production of cotton.
The month of January has started. The partial sowing of cotton will be started in the cotton producing areas of Sindh as soon as the completion of harvesting of wheat. The sowing of cotton starts from March 15 and the partial arrival of Phutti started from the month of June and one or two ginning factories started ginning from the month of June.
According to the experts, sale of cotton seed started from March. The Punjab Seed Corporation has started selling cotton seeds from December 15 which means that every body knows that local seeds are produced from substandard cotton of this season. During this season the seeds which were given had germination level of 40% to 50 % due to which the production of cotton in 2020-21 witnessed an extraordinary decline as compared to last thirty years. This year the production of cotton is around 58 lac bales. Now what is the result if these seeds will be used for sowing? It is correct that unfavourable weather conditions, substandard pesticides, attack of white fly and Pink Ball worm and Locusts attack were the factors behind low cotton production.
Stake holders related to cotton are continuously requesting to the government that substandard pesticides are the biggest factor of low cotton production. If the production of good quality cotton seeds is not possible locally then government should allow import of quality cotton seeds from abroad. The government should also fix the support price of cotton like other products but it was opposed.
For the last many weeks in our weekly report we are giving warning to the government that it’s a situation like “Now or never”. The government should allocate districts for growing cotton as well as government should call experts from abroad and import technology from abroad in order to increase the production of cotton in the country. No concrete effort was seen in this regard. The government has announced to give incentives of Rs 2000 to Rs 5000 per Acer to the growers of sunflower in order to increase the production of eatable oil in the country. Government should announce more incentives for the cotton growers because eatable oil was produced from cotton Banola.
There are multiple benefits of cotton crop especially produces cotton for textile, eatable oil, animals fodders as well as it is used in the manufacturing of soap. We are not against giving incentives to the farmers but government had not announced any incentive for cotton crop which is a cash crop and considered as a backbone for the economy. A year before Prime Minister had announced Rs 381 billion subsidy for agriculture unfortunately a single penny was allocated for increasing the cotton production. The cultivating area of cotton is continuously decreasing. Sugar mills were constructed in cotton zones. The complaints were lodged against this illegal act but no government official or department was listening.
According to the experts government should take steps on war footings to increase the production of cotton and if the government had not taken steps, the farmers who were bearing loss for many years started taking interest in other crops. The experts warned that if steps were not taken to increase the production of cotton then the production will decline further and the textile sector which is the biggest foreign exchange earner and provide jobs to 40 percent people will depend on imported cotton.
On the other hand Prime Minister Imran Khan had established Cotton Crop Task Force under the chair of Group leader APTMA Gohar Ejaz. According to Gohar Ejaz he made five big textile groups having capacity of more than 5 lac spindles as a part of their group. He has also contacted technologists abroad. It is pertinent to mention here that four or five years back APTMA constituted a Cotton Crop Task Force under Malik Akbar who was at that time vice president of APTMA. According to the sources at that time some vested interest include owners of seed firm’s deals in imported seed played an important role in failing this initiative.
Now this time Prime Minister Imran Khan had constituted CCTF under Gohar Ejaz. Naseem Usman told that he tried many times to contact Gohar Ejaz and talk him regarding what steps task force had taken to increase the production of cotton but unfortunately he was not contacted. Naseem said that Gohar Ejaz should brief the stake holders regarding strategy for increasing the production of cotton. He further said that Ministry of National Food Security and Research should gave awareness that soon after the harvesting of wheat sowing of cotton will be started. 2020 proved to be disappointing for the cotton crop while there was a recession world wide due to COVID 19.
By the grace of God Pakistani textile sector is working on full capacity. Pakistan is getting export orders in good quantity. Prime Minister Imran Khan and Advisor on textile Abdul Razak Dawood had encouraged the exporters.
Copyright Business Recorder, 2021
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