KARACHI: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Saturday has decreased the spot rate by Rs 300 per maund and closed it at Rs 11200 per maund.
The local cotton market remained sluggish on Saturday. Market sources told that trading volume remained low.
The cotton production in the country witnessed an alarming decline of 3 million bales, according to a report released by Pakistan Cotton Ginners Association. The report says that more than 5.645 million bales were produced in the country which is 3 million bales lees as compared to the last year’s production of 8.7 million bales.
According to the statistics released by Pakistan Cotton Ginners Association till April 1, more than 2.1 million bales were produced in Sindh while more than 3.5 million bales were produced in Punjab.
The local textile mills bought more than 5.4 million bales while the ginners had the stock of 85 000 bales. Only five ginning factories were partially functional. Pakistan Cotton Ginners Association had not prepared the report in 2020 so it is very difficult to compare the figures with previous year.
Cotton Analyst Naseem Usman while commenting on the report said that this year production of cotton witnessed an alarming decline. He also said that if we compare this year cotton production with previous years it is lowest in thirty years.
Naseem said that partial sowing was started for the year 2021-22 in cotton producing areas of Sindh. According to the reports up till now the sowing in Sindh is satisfactory while the sowing in Punjab will partially start from April 15.
Naseem told that value-added textile sector of Pakistan has expressed its reservations about cabinet’s refusal to allow import of cotton yarn from India, saying that they are planning a protest in the coming days.
“According to the World Trade Organisation (WTO) laws, no one can object to trade with another country, the restrictions imposed by Pakistan on trade with India are based on political grounds, but if we allow imports of medicines from India, then why not cotton yarn,” questioned Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Patron-in-Chief Ijaz Khokhar.
Khokhar said the entire value-added sector was shocked by the way the government reversed its decision, sparking concern among them.
“This step shows that mafias are still part of the government and this impression will reach our international buyers,” he said, adding, “We now fear that this step will help a certain part of the textile sector whereas the rest will lose orders as buyers will prefer India and Bangladesh over Pakistan due to such steps.”
The government earlier announced that it was allowing import of cotton yarn and sugar from India, however, within 24 hours of the statement which had the potential to defuse tensions between the two neighbouring countries, the cabinet opposed the decision.
The country’s struggling value-added textile export sector on Thursday showed disappointment over the federal cabinet’s decision not to permit cotton yarn import from hostile India.
The ECC had floated a proposal to the government to permit the suspended import of cotton yarn from India. Pakistan Apparel Forum chairman Javed Bilwani called the cabinet move of rejecting trade from the neighbouring nation ‘disappointment’.
Advisor Commerce Razak Dawood’s recommendation to permit the import of cotton yarn from India is a realistic thinking which is also the need of time, he said adding the Cabinet should accord serious considerations to the issue.
Textile Export sector, in wake of unavailability of cotton yarn, is continuously demanding Advisor Commerce Razak Dawood to allow import of duty free cotton yarn from worldwide including India, he said.
He said rejection of ECC proposal by cabinet has conveyed a negative message to foreign buyers as cotton yarn is not available on the local market for manufacturing value-added textiles. Prices of cotton yarn in country have been further increased after the rejection of ECC proposal by Cabinet, he added.
“The Government must take responsibility to ensure availability of cotton yarn in country if do not want to allow its import from India,” Bilwani said.
Naseem told that 200 bales of Rohri were sold at Rs 10,400 per maund, 200 bales of Karundi were sold at Rs 10,400 per maund, 400 bales of Shujaabad were sold at Rs 11000 per maund and 800 bales of Rahim Yar Khan were sold at Rs 11000 per maund.
Naseem also told that rate of cotton in Sindh was in between Rs 10,200 to Rs 10400 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 Rs 10500 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 has decreased the spot rate by Rs 300 per maund and closed it at Rs 11200 per maund. The Polyester Fiber was available at Rs 220 per Kg.
Copyright Business Recorder, 2021