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 10,600 per maund
The local cotton market remained stable on Monday. Market sources told that trading volume was low.
Mian Farrukh Iqbal, Senior Vice Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has appreciated government’s resolve to ensure duty-free import of raw material for value-added sector and demanded that government must withdraw custom duty on import of cotton yarn to achieve its ambitious targets of enhancing textile exports to $50 billion by the year 2025.
He said that yarn is a basic raw material for the value-added textile sector but its domestic production has been squeezed to minimum due to drastic cut in the production of raw cotton.
“The Government must realize the gravity of this issue to support the Value Added Textile Exports,” he said and added that due to the non-availability of cotton yarn, the prices of cotton yarn are increasing day by day which has brought an upshot in the cost of manufacturing pushing the exporters towards unviable situation and un-competitiveness.
Cotton Analyst Naseem Usman told that the rate of cotton reached at ten year high of Rs 11,000 per maund. Bullish trend was witnessed in the international cotton market.
Naseem also told that Economic Coordination Committee (ECC) of the Cabinet postponed the approval the new Textile and Apparel Policy (2020-25) till the next meeting.
The government is set to unveil an ambitious Textile and Apparel Policy 2020-25 laden with cash subsidies and lower rates on utilities worth Rs960 billion to boost production and exports of value-added textile products.
The proposed policy, which will be the third such policy, estimates three scenarios that the measures will lift the textile and clothing exports to a minimum of $15.7bn and a maximum of $20.8bn by end of the year 2025.
Well-placed sources told that the Federal Board of Revenue (FBR) has sought one week’s time to analyse the revenue implications of the proposed measures under the policy. One of the major recommendations of the textile division is the restoration of the zero-rated regime for the five export-oriented sectors. The facility was withdrawn in the year 2019.
The FBR will take up the issue of zero-rated regime revival with the International Monetary Fund,” the sources said, adding the stakeholders also want its revival to cope with the impact of Covid-19.
Meanwhile, The Pakistan Readymade Garments Manufacturers and Exporters Association has endorsed the demand of PM Advisor on Commerce Abdul Razak Dawood to seek zero-rating regime for whole textile chain in the Textile and Apparel Policy 2020-25, stating the apparel sector is eagerly waiting for the approval of it from the ECC to make future marketing plan in the light of new policy.
PRGMEA central chairman Sohail A. Sheikh and chief coordinator Ijaz Khokhar, in a joint statement issued observed that restoration of zero-rating status of the textile sector is vital to maintain the momentum of present enhanced exports, as currently the sector is working at full capacity to meet the high demand of export orders.
Naseem also told that a Parliamentary Committee on China-Pakistan Economic Corridor (CPEC) was held at National Agriculture Research Centre, Islamabad under the Chairmanship of Sher Ali Arbab, MNA.
The Committee was briefed by Secretary, Ministry of National Food Security & Research and Chairman, Pakistan Agricultural Research Council regarding Pakistan Agricultural Research Council and other projects related to the agriculture sector.
The Chairman, Pakistan Agricultural Research Council (PARC), while sharing 10 years development targets under CPEC, briefed the Committee that PARC’s aim is to change Pakistan from a cotton import country to a cotton export country and save foreign exchange of US $1.5 billion.
Besides renovation of existing orchards, the introduction of new varieties, reducing post-harvest losses, improving value chain and development of rural industries are major proposed interventions.
Naseem Usman told that 400 bales of Ghoki were sold at Rs 10,600 per maund, 600 bales of Saleh Pat were sold at Rs 10,200, 400 bales of Shuja Abad, 200 bales of Bagho Bahar were sold at Rs 11,000, 600 bales of Dera Ghazi Khan were sold at Rs 10,400 to Rs 11,000, 400 bales of Liaquat Pur were sold at Rs 10,800, 600 bales of Fort Abbas were sold at Rs 10,725, 400 bales of Khanewal were sold at Rs 10,700, 300 bales of Yazman Mandi were sold at RS 10,200 to Rs 10,400 and 400 bales of Lodhran were sold at Rs 10,000.
Naseem also told that rate of cotton in Sindh was in between Rs 9700 to Rs 10,400 per maund. The rate of cotton in Punjab is in between Rs 9800 to Rs 10,500 per maund. He also told that Phutti of Sindh was sold in between Rs 3800 to Rs 4700 per 40 kg. The rate of Phutti in Punjab is in between Rs 4000 to Rs 5500 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1750 to Rs 2200. The rate of cotton in Balochistan is Rs 10,000 per maund.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 100 per maund and closed it at Rs 10,600 per maund. The rate of Polyester Fiber was increased by Rs 5 prer Kg and was available at Rs 188 per Kg.
Copyright Business Recorder, 2021