KARACHI: The local cotton market on Thursday remained stable. Market sources told that trading activity remained low.
Cotton market analyst, Naseem Usman told Business Recorder that a delegation of Federation of Pakistan Chambers of Commerce and Industry will met Prime Minister Imran Khan next week. Former President FPCCI Mian Anjum Nisar told this to the regional convener of the Cotton and Textile Committee Malik Talat Sohail during a meeting that a strategy regarding increasing the production of cotton will be on top of the agenda.
Meanwhile, President Multan Chamber of Commerce and Industry Khawja Salahuddin has written a letter to Governor State Bank of Pakistan to ensure the provision of crop insurance to the cotton farmers.
Hanif Lakhany, vice president FPCCI and senior vice chairman Pakistan Yarn Merchants Association and vice chairman Farhan Ashrafi & convener on FPPCCI Central Standing Committee on Yarn trading while urging Prime Minister Imran Khan to formulate lasting and stable economic policies to take the country out of the economic crisis
ICE cotton futures gained more than 1 percent on Wednesday as concerns that dry weather in key-producing regions in Texas would hit the natural fibre crop, with a further boost coming from a slight retreat in the dollar.
The cotton contract for July was up 0.94 cent, or 1.12%, to 84.71 cents per lb by 12:59 p.m. EDT (1659 GMT). It traded within a range of 83.5 cents and 84.78 cents a lb.
“The dollar is down and the weather outlook for Texas is dry,” lifting prices, said Rogers Varner, president of Varner Brokerage in Cleveland.
The dollar edged down against a basket of currencies, lowering the cost of greenback-denominated cotton for buyers holding other currencies.
“It is very possible” that prices could return to levels seen in February if the weather situation in Texas worsens, said Bailey Thomen, cotton risk management associate with StoneX Group.
While at the domestic front, good news appeared in a section of press that Pakistan performed better than India in apparel exports to the United States in February 2021. Pakistan had an outstanding performance among apparel export destinations globally during February, according to Sourcing Journal, a credible source for textile sector information.
“We were the only main exporter with increased apparel supply to America during Covid-19,” said Adviser to PM on Commerce Abdul Razak Dawood while talking to a local newspaper.
Pakistan was on top position in the list of countries that export textile, according to a report released by Apparel Resources, another international platform that gives insights into apparel industry exports.
Normally, India and Bangladesh perform better than Pakistan but this time Pakistan has fared better than its neighbouring countries despite all the challenges of Covid-19 faced worldwide.
Although the apparel import value of the US, a prominent destination for textile exports, decreased 8.7% year-on-year to $5.39 billion in February 2021, its volume increased 3.2% and Pakistan was on top of the list of countries which witnessed a hike in their apparel exports.
Other countries that recorded growth in exports included China, Bangladesh and Egypt. Pakistan and China managed to increase their apparel shipments to the US both in terms of value and volumes. “Pakistan is showing the world that we are a reliable supply destination,” Dawood emphasized.
India, Vietnam and Indonesia experienced a decline in apparel exports to the US both in value and volume terms.
Dawood claimed that government policies for the textile industry played a significant role in exports. “Our vision is to promote ‘Make in Pakistan’,” Dawood remarked.
Even though the country is performing well in textile exports, it is facing many challenges to keep up with the performance. The biggest hurdle is the decrease in cotton production in the country, which is the main raw material for the textile sector.
The country is facing shortage of around half of its requirement of cotton, estimated at seven million bales. Giving in to the pressure from the textile industry, the government recently allowed duty-free import of cotton yarn.
“Countries now want to diversify their supply chain and this is a good chance for Pakistan to grab its share in countries which imported products from other countries previously,” said the report.
“This will be a challenge for Pakistan; either it increases exports through existing companies or helps new players to venture into this sector.” Through its policy, Pakistan can encourage foreign direct investment in this sector by inviting companies to move their factories from other countries to the free economic zones in Pakistan.
The spot rate remained unchanged at Rs 11300 per maund. The Polyester Fiber was available at Rs 205 per Kg.
Copyright Business Recorder, 2021
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