KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Tuesday increased the spot rate by Rs 300 per maund and closed it at Rs 12300 per maund.
The local cotton market remained stable on Tuesday. Market sources told that trading volume was also satisfactory.
Cotton Analyst Naseem Usman told that the successful efforts of the value added garment and home textile industries facing jeopardy in the wake of unavailability of cotton yarn and abrupt decrease of value of rupee against dollar.
For the reason, the garment and home textile exporters fearing steep downfall in exports in coming months. In last six months, dollar has also depreciated against Pak Rupees by 5.58% from 166.5 to 157.2 while exporters previously had negotiated and finalized their export orders at dollar rate of PKR 166.5. Similarly, during last three months, cotton yarn 30/1 prices have been increased by 15% and that also is not available in the market. Due to uncertainty and recurring fluctuations rupee dollar parity, exporters are reluctant for new orders as both are uncertain about the cost of the product. Exporters are hurting from both sides, therefore, Government must intervene to save the value added textile exports. The gravity of situation demands the Government to immediately abolish Customs duty on import of cotton yarn in the interest of value added garment and home textile exports and the country. Muhammad Jawed Bilwani, Chairman,
Pakistan Apparel Forum & Former Central Chairman, Pakistan Hosiery Manufacturers & Exporters Association said that Despite decline in cotton crop and acute shortage of cotton yarn, spinning mills have exported 209,290 Metric Tons during last seven months of Fiscal Year 2020-21. Value Added Garment and Home Textile Export Sector fervently appealed to restrict exports of cotton yarn which is basic raw material as yarn exporters are exporting coarse count yarn which involves cotton and gas which all are short in our country, he said.
APTMA Sindh-Balochistan Region, Asif Inam Tuesday strongly condemned mala-fide propaganda of shortage and unavailability of yarn despite yarn import is allowed from all over the world except India in response of their restriction on import of Pakistani products.
In a statement, Asif Inam said that as per Customs data yarn is already imported from 59 countries. Their love for India despite the hostile attitude for Pakistani products is not understandable and the data is strangely fabricated to portray gloom and doom situation of slight decline in exports by comparing exports of 28 days February of 2021 with 29 days February of 2020 which was the leap year.
Asif Inam further said that the downstream industry is creating hue and cry of unavailability of cotton yarn even though they are availing all facilities which are not provided to the exporters of yarn including subsidized Export Refinance Facility, Duty Local Taxes and Levies (DLTL), etc. Moreover they are also allowed to import duty free cotton yarn under DTRE, Export Oriented and Manufacturing Bond Schemes if they find the local yarn expensive.
Moreover, ICE cotton futures edged down on Monday as a stronger US dollar countered support from robust demand and bets for lower ending stocks in this week’s federal supply-demand report.
Cotton contracts for May fell 0.29 cent, or 0.3%, to 87.47 cents per lb by 12:27 p.m. ET (1727 GMT). It traded within a range of 87.24 and 89.34 cents a lb.
The contract fell to its lowest since Feb. 8 at 85.67 cents on Friday.
The US Department of Agriculture’s (USDA) weekly export sales report on Thursday showed exports of 377,400 running bales (RB) were up 29% from the previous week and 11% above the prior four-week average.
Nsaseem told that 1400 bales of Khan Pur Mehar were sold at Rs 12000 per maund, 1200 bales of Khan Pur were sold at Rs 12100 to Rs 12900 (COND)per maund, 100 bales of Multan, 146 bales of Fort Abbas were sold at Rs 12700 per maund, 900 bales of Faqeer Wali were sold at Rs 12300 to RS 12500 per maund, 200 bales of Khanewal were sold at Rs 12300 per maund and 293 bales of Haroonabad were sold at RS 12200 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 4800 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 increased the spot rate by Rs 300 per maund and closed it at Rs 12300 per maund. The Polyester Fibre was available at Rs 218 per Kg.
Copyright Business Recorder, 2021
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