KARACHI: The spot rate of cotton decreased by Rs 700 per maund in the local market in the last four days. Market sources told that the Spot Rate Committee of the Karachi Cotton Association on Monday decreased the spot rate by Rs 400 per maund and closed it on Rs 11500 per maund.
Cotton Analyst Naseem Usman told that local market was sluggish on Monday. The trading volume remained thin.
Senior Vice Chairman of Pakistan Yarn Merchants Association (PYMA), Hanif Lakhany has urged Abdul Razak Dawood, Adviser on Trade & Investment to PM to fulfil his promise for removal of additional customs duty and regulatory duty (ACD & RD) on synthetic yarns, which is the raw material of the textile industry.
He said that the government should play a role in providing raw materials to the textile industry at reasonable prices, otherwise Prime Minister Imran Khan’s dream of industrial & economic development will never come true.
Hanif Lakhani appealed to Trade and Investment Adviser Abdul Razak Dawood, saying that last year the government had announced the abolition of additional customs duty and regulation on industrial raw materials, but ACD & RD on synthetic yarns were not abolished, so immediately remove these barriers for reducing the production cost and also justify the cascading system of polyester value chain. But even after a long wait, the prime minister’s adviser has not kept his promise, which is a matter of grave concern to textile exporters and importers.
Farhan Ashrafi, Vice Chairman PYMA, pointed out that due to the continuous rise in prices of raw materials of the textile industry and shortage of cotton, the production cost of industries has gone up and exporters were facing losses due to higher production costs against export orders. He said due to the monopoly of two local manufacturers, anti-dumping duty is already imposed on synthetic yarns.
Therefore, in order to ensure the supply of cheap raw materials to the textile industry and importers, it has become imperative that the additional customs duty & regulatory duty on synthetic yarns be abolished immediately and justify the cascading system.
Naseem told that 400 bales of Khan Pur Mahar were sold at Rs 10,700 per maund and 400 bales of Panu Aqil were sold at Rs 10,700 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 decreased the spot rate by Rs 400 per maund and closed it on Rs 11500 per maund. The Polyester Fiber was available at Rs 220 per Kg.
Copyright Business Recorder, 2021
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