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Coronavirus
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5824hr
Pakistan Cases
725,602
458424hr
Sindh
269,126
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Islamabad
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KPK
99,595

KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Wednesday has increased the spot rate by Rs. 100 per maund and closed it at Rs 11000 per maund.

The local cotton market remained bullish on Wednesday. Market sources told that trading volume was low.

According to market sources Abdul Razzaq Dawood, Adviser on Commerce, Textiles and Investment, has assured the industrialists at a Zoom meeting on Tuesday of continuing imports of cotton and yarn from Wagah border. He said that the value added textile sector was facing a severe crisis due to the shortage of yarns and therefore Prime Minister Imran Khan would allow the import of cotton and yarn from India.

Mian Farrukh Iqbal, senior vice chairman of the Pakistan Hosiery Manufacturers and Exporters Association, welcomed the decision, saying it would not only increase exports but also reduce unemployment. He said that importing yarn from other countries was not only expensive but would also take one to two months to reach Pakistan. Yarns will be available to us on time from Wagah border and fulfilment of export orders will also be possible on time. He said that in order to promote the export of value added textiles, the government would have to take important steps to increase the production area and production of cotton. He said that it was a matter of concern that the production of cotton in Pakistan was reduced to only 5.5 million bales. He demanded the government ban the export of yarn to meet the shortfall. These measures will increase exports and become a source of multi-currency for the country.

Meanwhile, Value-Added Textile Associations Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations (CAPTA), Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum, Riaz Ahmed, Central Chairman Pakistan Hosiery & Manufacturers Exporters Association, Tariq Munir, Zonal Chairman (SZ), Farrukh Iqbal, Senior Vice Chairman PHMA (NZ), Ijaz Khokhar, Former Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association, Haroon Shamsi, Former Chairman, Towel Manufacturers Association and Zia Alamdar, Former President, Faisalabad Chamber of Commerce & Industry in an online meeting held with Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile demanded that government, through Presidential Ordinance, must abolish all duties and taxes and allow duty-free import of cotton yarn which is the raw material of value-added textile sector in order to sustain and achieve milestone in enhancement of exports.

They also demanded that government should also place ban on export of cotton yarn of 30 single or below till June 2021 ensuring availability of quality yarn to facilitate export sector to complete their export orders without hassle and unrest. In view of shortage of wheat and sugar, the government had allowed to import wheat and sugar and also banned their export to cater the national needs.

Consequently, without discrimination, in order to overcome the scarcity of yarn in the Pakistan, as government previously allowed for import of pharmaceuticals, it is also most crucial to allow import of cotton yarn from neighbouring country through Wagah border as the quality yarn is not available and prices are also multiplied to manifolds.

Likewise, anti-dumping duties on goods imported meant for re-export by Export Oriented Units and Manufacturing Bond should also be abolished. Moreover, to turn vision of the Prime Minister for enhancement of exports into reality and to control the declining trend in exports, the government should freeze the special tariffs of 7.5 cents for electricity and $ 6.5 for gas for at least next three years and provide uninterrupted and quality electricity and gas providing level playing field and competitive environment to enhance their export efficiency and materialize all exports orders.”

Cotton Analyst Naseem Usman told that during 2020/21 U.S. cotton supply and demand forecasts show slightly higher exports and lower ending stocks relative to last month. Production and domestic mill use are unchanged. The export forecast is raised 250,000 bales to 15.5 million based on a strong pace of shipments to date. Ending stocks are now estimated at 4.3 million bales, equivalent to 24 percent of total disappearance. The upland cotton marketing year average price received by producers is projected at 68 cents per pound, unchanged from January.

The 2020/21 world cotton forecasts include higher production, consumption, and imports, led by changes in China. World production is projected 1.3 million bales higher this month, with China’s forecast raised by 1.5 million bales as the daily rates of both ginning and inspections in Xinjiang continue to show unusual late-season strength. Reports from China continue to suggest 2020/21 cotton area in Xinjiang was little changed from last year, but government classing data now indicates yields could be about 10 percent higher, while lower in Eastern China. India’s production estimate is reduced 500,000 bales on increasing evidence of pest infestation, while Pakistan is 200,000 bales higher and Australia 100,000 bales higher. World consumption is projected 1.5 million bales higher this month, with China’s forecast 1.0 million bales higher reflecting growing domestic textile demand and exports. Much smaller increases are also included for India, Pakistan, Bangladesh, and Turkey, while the outlook this month is for lower consumption in Indonesia and Thailand. World trade is projected 350,000 bales higher than last month, with imports 500,000 bales higher for China, and smaller, partially offsetting changes elsewhere. World ending stocks are almost 600,000 bales lower this month, at 95.7 million bales, 3.2 million bales lower than in 2019/20.

Naseem Usman told that 400 bales of Fort Abbas were sold at Rs 11100 per maund, 200 bales of Liaquatpur, 200 bales of Bago Bahar were sold at Rs 11300 per maund and 400 bales of Khanpur were sold at Rs 11400 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 11000 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 on Wednesday has increased the spot rate by Rs 100 per maund and closed it at Rs 11000 per maund. The Polyester Fibber was available at Rs 197 per Kg.

Copyright Business Recorder, 2021