KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Saturday decreased the spot rate by Rs 200 per maund and closed it at Rs 12000 per maund.
The local cotton market remained stable on Saturday. Market sources told that trading volume was low because the stock of the cotton was low and the production of the cotton is very low.
Cotton Analyst Naseem Usman told that according to Indian media Indo Pak cease fire accord brings ray of hope for the resumption of trade via Wahga-Attari border.
Senior Vice Chairman of Pakistan Yarn Merchants Association (PYMA), Hanif Lakhany and Vice Chairman Farhan Ashrafi have termed not reviewing of the tariff structure of polyester chain and not allowing immediate duty-free import of cotton, polyester cotton and polyester filament yarn by the government as catastrophic for small and medium enterprises (SMEs).
They feared that the textile industry would be ruined if it was not supplied with raw materials at reasonable prices as per the production demand.
In a meeting with a delegation of polyester yarn users, industrialists, importers and traders, raising their concerns, they said that the government is aware that cotton production has declined this year, while the skyrocketing prices of polyester filament yarn, the main raw material for the textile industry, have pushed up production costs to an unbearable level.
“As a result of higher prices in the local market, SMEs have no choice but to close their units, if nothing is done to alleviate the pain of super high prices, it may pose a grave danger to the fragile export growth,” they pointed out.
Meanwhile, All Pakistan Textile Mills Association (APTMA) has urged the government not to allow import of yarn from India aimed to keep the prices stable in the domestic market.
APTMA Sindh-Balochistan Region chairman Asif Inam has said there is drastic decline in price of fine counts of yarn by Rs 10,000 per bag in the Faisalabad yarn market which is in expectation of massive tax evasion plan by individuals in anticipation of permission be allowed to import cotton yarn from India through Wagah Border.
He said industry has procured cotton at very high prices and they are not in a position to sustain these losses. He said about 90 percent of yarn produced in the country is available for the domestic market and there is no shortage of yarn in the country.
Prime Minister Imran Khan nodded to cross-border import of cotton yarn as the shortage of industrial input is feared to stymie recovery in textile exports.
Commerce Adviser Razak Dawood said the Prime Minister showed his concern on shortage and escalating cotton yarn prices in the country during a meeting.
“[He] instructed to take necessary measures, including cross border trade of cotton yarn, to keep the momentum of value-added exports,” Dawood wrote on Twitter.
The government is considering import of cotton from India to meet the local demands, according to media reports.
Cotton production came down to 5.5 million bales from as much as 15 million bales recoded annually in previous years, causing unstoppable rise in its prices.
Textile and clothing exports increased more than eight percent to $8.8 billion in the seven months of the current fiscal year. The growth pace can slow down amid the shortage of raw materials, according to traders who called for duty-free imports of yarn from any country, including India.
According to the statistics released by Pakistan Cotton Ginners Association till March 1, on Wednesday exactly 5,631,191 bales underwent the ginning process i.e. conversion to bales. Cotton arrivals in Punjab were recorded at over 3.5 million or 3,501,580 bales, while Sindh generated just over 2.1 million or 2,136,169 bales.
Naseem Usman told that textile sector’s profitability increased significantly by 32pc YoY during the first half (July-Dec) of FY21 primarily due to an increase in exports, improvement in other income, and decline in finance cost.
Nsaseem told that 200 bales of Ghotki were sold at Rs 11000 per maund, 300 bales of Mian Channu were sold at Rs 12300 per maund and 400 bales of Rahim Yar Khan were sold at Rs 11500 per maund.
Naseem also told that rate of cotton in Sindh was in between Rs 10,300 to Rs 11500 per maund. The rate of Phutti in Sindh is in between Rs 4500 to Rs 5100 per 40 kg.
The rate of cotton in Punjab is at Rs 12500 per maund. The rate of Phutti in Punjab is in between RS 4500 to Rs 6300 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 12000 per maund. The rate of Phutti of Dalbadin Balochistan is available at Rs 6300 to Rs 6400 per 40 Kg.
The Spot Rate Committee of the Karachi Cotton Association decreased the spot rate by Rs 200 per maund and closed it at Rs 12000 per maund. The Polyester Fibre was available at Rs 215 per Kg.
Copyright Business Recorder, 2021