KARACHI: Firm trend persisted on the local cotton market on Tuesday. Market sources said that trading volume was thin. The rates were high so mills showed less interest new buying, they added.
ICE cotton futures fell more than 2 percent on Monday on expectations that rains in Texas may benefit crops in the top cotton growing region in the United States, with a firmer dollar adding further pressure.
Cotton contracts for May fell 0.72 cent, or 0.8%, to 86.84 cents per lb at 12:26 PM EDT, having fallen as much as 2.3% earlier. It traded within a range of 85.58 and 87.87 cents a lb.
“About 80% of West Texas got rain and that area has been in drought since July so, it really needed it... and they still need more rain,” said Rogers Varner, president of Varner Brokerage in Cleveland.
A severe winter storm pummeled parts of the US Rockies and western Plains with heavy snow on Sunday, and was responsible for severe thunderstorms in Texas.
All Pakistan Textile Mills Association (Aptma) has appreciated Federal Board of Revenue’s efforts for improving sales tax refund system.
Shahid Sattar Executive Director and Secretary General Aptma on Monday met Member Inland Revenue Operations Dr. Muhammad Ashfaq Ahmed and his team to appreciate the remarkable efforts being done to resolve pending cases/issues to streamline operations pertinent to tax refunds, concessionary tariff rates and Faster System.
Cotton Analyst Naseem Usman told that Multan Cotton Institute has introduced new seeds of cotton keeping in view the changes occurred due to climate change.
Naseem told that the increasing trend in textile export will be reversed if immediate steps were not taken for the availability of cotton yarn at reasonable rates, said Engineer Hafiz Ihtasham Javed, President Faisalabad Chamber of Commerce & Industry (FCCI).
He was participating in a zoom conference which was chaired by Abdul Razzak Dawood Special Advisor for Commerce & Investment to the Prime Minister. It was also physically attended by Khurrum Tariq and Khurrum Mukhtar while Syed Zia Alumdar Hussain and Chaudhry Muhammad Nawaz also participated in it through zoom.
He expressed deep concern over artificial shortage of yarn with ulterior motives to jack up its prices and said that it is disastrous for the entire value added textile chain. He said that Faisalabad yarn market generally closed after 8 to 9 P.M. but now it continues underhand businesses of extortion to mint money till late in the night.
“This is not only a threat to the value added textile sector but also causing huge financial loss to the government kitty through tax and duty evasion”, he said and added that this situation has necessitated government intervention to check this illegal practice.
Meanwhile, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has asked the government to take measures to bring down the cost of agriculture production, prioritizing agri sector in its economic planning to ensure food security through enhanced per acre yield.
Due to lower produce of three major crops the import of wheat has jumped to $909 million, sugar $126 million and cotton $913 million during Jul-Feb 2021.
The cumulative import bill of the three agriculture products in the eight months touched to the figure of almost $2 billion, lifting the ever-increasing trade deficit further, amidst alarming decline in cotton production by 34 percent, Mian Anjum Nisar, chairman of the FPCCI’s ruling group said in a statement on Saturday.
He said that lack of investment agriculture research, poor governance, bad planning and climate change have already resulted in shortage of wheat, sugar and cotton. As a result, the import bill of cotton has increased substantially owing to record low production.
According to the figures, till Feb 2021 cotton arrivals in Punjab are recorded at 3.5 million, while Sindh generated just 2.1 million which is 1.5 million bales less in Punjab and 38.52 percent less in Sindh respectively as compared to the last year’s production.
Naseem Usman further told that the denial by the government to supply gas and electricity at regionally competitive tariff to the export industry has not only jeopardized the expansion in industrial base and investment that have so far taken place in the textile sector but also the $2 billion investment that is in the pipeline.
And under the latest scenario, the expansion in industrial base has virtually come to rest, as all the new equipment and feasibility was based on sustained gas/RLNG supply at regionally competitive rates to provide stable and reliable power.
This all has directly been conveyed to the prime minister of Pakistan by the APTMA chairman in his letter written on March 11, 2021. The letter, while berating the decision taken by CCOE on moratorium on gas/RLNG supply to Captive Power plants (CPPs) of the export oriented sector and highlighting the catastrophic impact on expansion of industrial base, informed the top man of the Government of Pakistan that industrialization that earlier picked up the momentum has now been halted.
“The expansion and investments in the textile sector are a direct consequence of your government’s policy of Regionally Competitive Tariffs. Since under the CCOE decision, the gas supply to CPPs is being disconnected from March 15, 2021, so the momentum gained by this effective and progressive policy will be lost if the decision on captive power is not reversed.
Naseem told that 211 bales of Daharki were sold at Rs 11400 per maund, 400 bales of Haroonabad were sold at Rs 12500 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 remained unchanged at Rs 12300 per maund. The rate of Polyester Fiber was increased by Rs 2 per Kg and was available at Rs 220 per Kg.
Copyright Business Recorder, 2021