KARACHI: In the local cotton market during the last week, trading volume remained very thin due to the lack of interest in buying by the textile and spinning mills. The rates of cotton remained stable amid prevailing bearish trend, and fluctuated international market.
Another reason of the low trading volume was that ginners had left the stock of only 40 thousand bales. Hardly any deal took place.
Focusing the cotton crop of next season, both private and public sector organizations are giving awareness to the people regarding this.
The rate of cotton in Sindh is between Rs 10,200 to Rs 10,500 per maund while in Punjab it is between Rs 11,000 to Rs 11,300 per maund. Balochi cotton was sold in between Rs 12,500 to Rs 13,000 per maund.
The Spot Rate Committee of the Karachi Cotton Association stabled the rate of cotton at Rs 11,300 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that fluctuation was seen in the international cotton markets. He said we can say that Rate of Promise (Waday Ka Bhao) was stable.
According to the weekly USDA export report over all exports witnessed a decline of 17 percent as compared to last week. This time export orders of 63700 bales were signed out of which Pakistan was number one importer with 16200 bales and Bangladesh was number two with 15800 bales.
According to the information received from India, the demand of cotton decreased by 8 percent due to lock down in many places. The demand of cotton after decreasing is 38,000,000 bales. According to India’s Central Textile for Production and Consumption, this year export of cotton will be decreased. Last year India’s closing stock was 98 lac bales which will be 11,800,000 bales till September 2021 after increasing. This year India’s cotton production is expected to 36,000,000 bales which is 11 lac bales less as compared to last year’s production of 37,100,000 bales. This year cotton sowing in India was less as compared to the expectations due to the long strike of farmers due to this the rate of cotton in India increased by Rs 700 per candy.
The rate of cotton remained stable in Brazil, Central Asian States and Argentina despite of the fact that new crop of cotton has started arriving in Brazil.
In addition, cotton prices in the international cotton market this year, especially in the United States, are higher than last year, so local textile mills will be careful to import cotton in large quantity.
In the country, the sowing of cotton this year is taking place in large area in Lower Sindh and cotton sowing has also started in some areas in Punjab province.
Phutti will start arriving from the lower areas of Sindh till end of the May. It is expected that one or more ginning factory in Sanghar will resume its operations on the start of June. This year government is running a campaign against substandard pesticides and seeds and arrested many culprits involved in the selling of the business of substandard pesticides and seeds.
Pakistan Cotton Ginners Association is holding meetings in different areas and ginning factories in order to create awareness among them regarding increasing the production of cotton and they are being encouraged to sow as much cotton as possible this year in order to increase the country’s cotton production to some extent.
The bank officers along with the PCGA task force are visiting different areas and guiding the farmers regarding issuance of Kissan card so that they can get subsidy.
Regional Committee for Cotton and Textiles, led by former president FPCCI and chairman of the Businessmen Panel Mian Anjum Nisar, called on Muhammad Asim, in-charge of Monsanto and Bayer Crop Science Regulatory Science Team Pakistan at his Lahore office.
The difference between cotton production in Pakistan and India came into effect in the meeting.
Pakistani cotton production has not been even a quarter of the Indian cotton. India using Monsanto technology increased its cotton production from 10 million bales to 40 million bales and Pakistan still has 5.6 million bales of cotton.
The committee was briefed on the details of Monsanto’s dealings with the Pakistani government in different periods since 2007 and said their affairs in Pakistan could not move forward if the legal requirements were not met.
Muhammad Asim also briefed about the affairs of Snefa, a company set up by five major textile groups in Pakistan. Chairman Anjum Nisar said that due to the decline in cotton production we are losing billions of Dollars in foreign exchange which is a tragedy.
FPCCI will make every effort to increase cotton production. He said Convener Committee on Textile Malik Talat Sohail will present budget proposals to the finance minister after consultation with the stake holders. He further said that we will continue our efforts in order to make a policy in the light of our recommendations.
Copyright Business Recorder, 2021