KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Tuesday has increased the spot rate by Rs 100 per maund and closed it at Rs 10,900 per maund.
The local cotton market remained bullish on Tuesday. Market sources told that trading volume was high.
Meanwhile, ICE cotton futures rose more than 1% on Monday on prospects of a market-friendly federal supply-demand report, while increased likelihood of a large stimulus package in the United States further supported the natural fibre.
The cotton contract for March rose 1.47 cents, or 1.8%, to 84.21 cents per lb by 1:17 p.m. EST (1817 GMT), having jumped to its highest level since August 2018 at 84.89 cents in the previous session. “We’re waiting for WASDE tomorrow. Average trade guess is that we will have a little bit smaller crop,” said Sid Love, commodity trading adviser at Kansas-based Sid Love Consulting.
“(Also) with the price of corn, sorghum and soybeans going up like a rocket it is kind of hard to see a lot of shifting of acres back to cotton,” he said, adding that gains in the grains and equities market were also supporting cotton.
The US Department of Agriculture’s highly anticipated monthly World Agricultural Supply and Demand Estimates (WASDE) report is due on Tuesday.
Meanwhile, Central Cotton Research Institute had trained about 300 cotton growers on use of best crop management practices for achieving higher per-acre output during the coming season.
In this regard, Central Cotton Research Institute in collaboration with Kashtkar Foundation had organised a day long workshop, which was attended by a large number of farmers, scientists and exporters.
The theme of training workshop was “ Revival of Cotton, Climate Change Position and Action Plan for the Eradication of Pinkbalworm,”.
The experts make deliberations on declining cotton crop, issues and challenges faced the cotton growers across crop producing areas in the country and suggested measures for the revival of major cash crop of the country for sustainable economic growth.
They urged the need for adopting scientific based, innovative techniques to avoid pest attacks to attain higher crop output, besides enhancing farm income.
Cotton Analyst Naseem Usman told that riding high on the cost advantage in the international market, India has already exported about 29 lakh bales (of 170 kg each) of cotton by the end of January 2021, data shared by the Cotton Association of India (CAI) showed.
Naseem told that Chairman Pakistan Cotton Ginners Association Dr Jassu Mal Limani during his meeting with Punjab Agriculture Minister Hussain Jahanian Gardezi said that government should announce clear cut policy regarding increasing the production of cotton in the country.
Naseem said that cotton seminar in Islamabad organized by Pakistan Cotton Ginners Association of Pakistan opened the eyes of ministries of Textile and ministry of Food Security and Research who were beating the drums of “ Sab Accha Hai” (All is Well) and hood winking the masses and stake holders. Chairman PCGA Dr Jassu Mal who is a practical man clearly states that “ mere lip service can’t change the situation”.
Naseem told that country’s cotton production fell by 34.35 per cent to 5.571 million bales up to Jan 31 against 8.487m bales produced in the same period of last year, the Pakistan Cotton Ginners Association (PCGA) said in its fortnightly report released on Wednesday.
Meanwhile, commenting on the shortfall of 2.9 million bales and the dire situation, textile industry representatives said poor productivity could erode viability of the export-oriented textile sector, which has 55 to 60pc contribution in overall exports of the country.
“This is the lowest cotton production in 30 years which is alarming for the textile sector as well as for exports,” said cotton expert and Chairman of the Cotton Brokers Forum Naseem Usman.
Both Punjab and Sindh reported a significant fall in cotton production.
Cotton production in Punjab till the end of January was 3.436m bales compared to 5.014m bales produced in the same period of last year — a fall of 31.5pc. However, production in Sindh fell by 38.5pc to 2.134m bales from 3.472m noted in the same period of last year.
Though textile exports went up by 7.8pc to fetch $7.442 billion during the first six months of the current fiscal, industry had to import cotton worth $321m in the first five months of the current financial year.
Naseem told that 400 bales of Marrot were sold at Rs 11,100 per maund, 4790 bales of Sadiqabad, 1400 bales of Rahim Yar Khan, 200 bales of Donga Bonga were sold at Rs 11,000 per maund, 2359 bales of Fort Abbas were sold at Rs 10,800 to Rs 11,500 per maund, 600 bales of Faqeer Wali were sold at Rs 10,875 per maund and 400 bales of Jahanian were sold at Rs 10,800 per maund.
Naseem also told that rate of cotton in Sindh was in between Rs 10,000 to Rs 10,700 per maund. The rate of cotton in Punjab is in between Rs 10,200 to Rs 11,000 per maund. He also told that Phutti of Sindh was sold in between Rs 3800 to Rs 5000 per 40 kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 5400 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 1800 to Rs 2250. The rate of cotton in Balochistan is Rs 11,000 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 10,900 per maund. The rate of Polyester Fiber was increased by Rs 2 per kg and was available at Rs 197 per Kg.
Copyright Business Recorder, 2021