KARACHI: The rate of cotton reached at Rs 11000 per maund which is highest in last ten years. The bullish trend was witnessed in international cotton market.
Due to the shortage of cotton yarn the textile products producers has appealed to the government to abolish import duty on cotton yarn as well custom duty on import of cotton yarn. Significant increase in textile exports observed. Cotton brokers are united for increasing the production of cotton. Around 70 lac bales of cotton will be imported out of which agreements were signed for the import of 42 lac bales.
Bullish trend was witnessed in the local cotton market during the last week because ginners were getting satisfactory rate of cotton as well as textile and spinning mills showed their interest in the buying of quality cotton. The rate of cotton increased by Rs 400 to Rs 500 per maund. The rate of quality cotton reached at Rs 11000 per maund which is highest in ten years. In the year 2010-11 due to extra ordinary buying by China the rate of cotton increased many times in the cotton producing countries of the world. The Rate of Promise (Waday Ka Bhao) of cotton increased by 2.29 dollars per pound which is highest in the history. In Pakistan the rate of cotton after massive increase reached at Rs 14000 per maund which is highest in the history. In that year many ginners had made extraordinary profits while some unlucky ginners reached on the brink of disaster. In the same way some textile mills made a lot of profit and some textile mills suffered huge loss. This year it happened second time that the rate of cotton reached Rs 11000 per maund. What will happen next? This question is on everyone’s lips.
According to some analysts the rate of cotton increased by 20 %, 50 percent were of the view that rate of cotton remained stable while according to 30 % the rate of cotton will decrease if bearish trend witnessed in the rate of New York Cotton. However, at this time country’s textile sector looks in winning position.
Despite COVID 19 textile sector is getting orders in substantial amount. The rate and demand of cotton yarn is increasing. Indicators don’t show any bearish trend but we should remember one thing that cotton business should be done with caution. On the other hand the rate of polyester is also increasing.
There is an alarming decline witnessed in the production of cotton in the country due to which the rate of Phutti increased along cotton. Although, cotton farmers will not get much benefit because their per acre yield is less as compared to the expectations that why they will hesitate to grow cotton in the next season.
The rate of cotton in Sindh is in between Rs 9500 to Rs 10700 per maund. The rate of Phutti is in between Rs 4000 to Rs 4700 per40 kg. The rate of Banola is in between Rs 1600 to Rs 2000 per maund. The rate of cotton in Punjab is in between Rs 10,000 to Rs 11100 per maund. The rate of Phutti is in between Rs 4500 to Rs 5600 per 40 kg. The rate of Banola is in between Rs 1800 to Rs 2300 per maund. The rate of cotton in Balochistan is in between Rs 10200 to Rs 11000 per maund while Phutti is almost finished. The rate of Khal and oil is increasing in other provinces.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 300 per maund and closed it at highest level of Rs 10,500 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that bullish trend was witnessed in the international cotton markets. The Rate of Promise (Waday Ka Bhao) of New York Cotton reached at 82 American cents per pound but after the USDA weekly export report which shows 47% decrease in export the Rate of Promise (Waday Ka Bhao) reached at 79.50 American cent.
Under the influence of increase in rate of New York Cotton bullish trend was witnessed in the cotton market of Brazil and Argentina. Bullish trend was also witnessed in the rate of cotton in India. The Cotton Cooperation of India (CCI) is giving incentives to farmers due to which the rate of cotton in India is increasing and cotton farmers are taking interest in growing cotton. While on the other hand in Pakistan cotton farmers are badly ignored due to which the cotton farmers were facing heavy loss for the past many years due to which farmers are disillusioned with cotton and started taking interest in other crops.
The rate of cotton in the country is continuously increasing and textile sector is running on full capacity due to which the demand and rate of cotton yarn is increasing. Central leader of Pakistan Hosiery Manufacturers Association Javed Bilwani has appealed to the government that there is a shortage of cotton yarn in the country so government should abolish import and custom duty on cotton yarn so that manufacturers can get yarn on competitive rates.
The industrialists are complaining about the increasing gas crisis in the country. They are saying that export agreements are being affected due to low gas pressure and some times due to the complete closures.
Moreover, Prime Minister Imran Khan and Advisor to Prime Minister on textile Abdul Razak Dawood have congratulated the exporters on the reasonable increase of export in the country in the months of November and December. In the months Pakistani exports are more than the exports of Bangladesh and India.
Naseem Usman told that sowing of cotton in lower Sindh will start in the end of February and will partially starts in March. However, no strategy is being evolved up till now for the provision of quality seeds due to which all the stake holders related to cotton which includes farmers, ginners, labourers, women cotton pickers and cotton brokers were worried.
The cotton brokers are demanding that government should take steps on war footings to increase the production of cotton, because the sowing of cotton in Sindh is getting closer.
Cotton broker Major Kashif Islam in its programs on social media is criticising government for not taking steps on war footings to increase the production of cotton in the country. He is also criticising departments relating to cotton on their disappointing performance.
Karachi Cotton Brokers Forum and Karachi Cotton Association Advisory Committee have started an awareness campaign “Grow Cotton Save Country”. They had also prepared banners in which they appealed to the government that farmers, land owners and labourers are looking towards state of Pakistan in this difficult time because their livelihood is linked to the cotton crop. The government is strongly urged to work on an emergency basis to improve cotton cultivation so that the country’s economy can improve as well as unemployment can be eliminated.
Copyright Business Recorder, 2021