KARACHI: The local cotton market on Saturday remained stable and trading volume remained low. Market sources told that trading activity started in the local cotton market after eid holidays but trading activity will fully resume from Monday.
Cotton Analyst Naseem Usman told Business Recorder the rate of cotton in Sindh is in between Rs 12500 Rs 12900 per maund. The rate of cotton in Punjab is in between Rs 13200 to Rs 13500 per maund.
The rate of the new crop of Phutti in Sindh was in between Rs 4500 to Rs 5300 per 40 kg. The rate of Phutti in Punjab is in between Rs 5200 to Rs 6000 per 40 kg. The rate of Banola in Sindh is in between Rs 1600 to Rs 1700 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1900 per maund. The rate of cotton in Balochistan is Rs 12900-13000 per maund. The rate of Phutti in Balochistan is in between Rs 5000 to RS 5300 per maund.
The country is likely to-miss cotton production target of 10.5 million bales due to high inputs costs including fertilizers, diesel, tractors, pesticides, and water shortage issues.
Sources in the Ministry of National Food Security and Research (MNFSR) said that during 2020-21, the total production of the cotton crop for 2020-21 declined 23 percent to little over seven million bales against 9.15 million bales 2019-2020, and during the current season, the government is also not likely to achieve the set cotton production target owing to the above mentioned issues. The area under cotton cultivation also fell by 17.4 percent to 2.01 million hectares compared to previous year's 2.5 million hectares, mainly due to absence of incentives to farmers to sustain the crop amid challenges from competing crops like sugarcane. They said that decline in cotton production was hugely impacting the country's balance of payment as the local industry was forced to import around $3 billion worth raw cotton to meet local requirements.
They further said that in 2011, the country produced 14.7 million bales of cotton since than the crop production is declining, because the farmers did not get desirable rates and they suffered heavy financial losses as a result, they shifted on other crops especially on sugarcane and maize. Sources said that the growers kept on urging the government for an intervention cotton price of at least Rs 5,500 per 40kg this year but the MNFSR proposed price of Rs 5,000. The government has set the production target for 2021-22 crops at 10.5m bales, which is 50 percent higher against 2020-21. The government has also set the target of cultivating cotton over 2.33 million hectares, up 16 percent more, when compared to this year's 2.01 million hectares.
Naseem Usman also told that from the shirts we wear to the towels we use and the sheets we asleep on, cotton affects all our daily lives. Cotton makes up around 31 % of all fiber used in the textile sector globally and supports the livelihood of almost 350 million people. But the future of this important fiber is uncertain.
The entire cotton value chain- from producers and processors to brands, retailers or traders - is facing increasing exposure to climate risks, including rising temperatures, changes to water availability and extreme weather events.
Naseem Further told that the top 25 textile companies have alone contributed over $5.361 billion, or 21 per cent, to the country's overall exports of $25bn in 2020-21.
"It is a matter of great pleasure that the exports of the textile sector alone soared by 19.23pc to $15.5bn in 2020-21 compared to $13bn the preceding year," Aptma (North Zone) Chairman Abdul Rahim Nasir told media. "It is really unprecedented," he added.
According to a list shared by trade bodies, Style Textile (Pvt) Ltd exports remained $428.76 million in 2020-21, followed by Interloop Ltd with $331.54m, Artistic Milliners (Pvt) Ltd $329.63m, Yunus Textile Mills Ltd $311.92m, Nishat Mills Ltd $307.32m, Gul Ahmad Textile Mills Ltd $284.25m, Feroze 1888 Mills Ltd $273.04m, Soorty Enterprises Ltd $268.14m, Artistic Fabric & Garment Industries (Pvt) Ltd-$226.42m, Liberty Mills $216.33m, Masood Textile Mills Ltd $213.05m, Sadaqat Ltd $209.22m, US Apparel & Textiles Ltd $197.50m, Al-Karam Textile Mills Ltd $185.25m, Nishat (Chunian) Ltd $169.70m, Novatex Ltd $167.49m, Lucky Textile Mills Ltd $165.79m, Garibsons Ltd $165.65m, Denim Clothing Company $148.58m, Klash Ltd $139.16m, Sapphire Finishing Mills Ltd $137.35m, Gohar Textile Mills Ltd $126.78m, Kamal Ltd $125.75m, Riaz Textile Mills Ltd $121.09m and Sapphire Fibres Ltd $111.87m.
He said keeping in view the rapid expansion in the textile exports owing to increasing investments, Aptma has decided to take all those textile exports companies making $40m to 50m per annum to achieve the figure of $100m each. "If we succeed in doing so, our textile exports alone may jump from $15.5bn to $25bn in next couple of years," he added.
Meanwhile, Pakistan Cotton Ginners Association has appealed to the Prime Minister of Pakistan to establish an autonomous cotton control board which should be directly supervised by the Prime Minister of Pakistan in order to achieve the target of production of 20 million cotton bales and in order to save ginning industry from closure.
They also demanded that zoning of the cotton crop must be implemented in letter and spirit. Government should also ensure availability of certified, germinated heat and disease resistant seeds. The Spot Rate remained unchanged at Rs 12700 per maund. The Polyester Fiber was available at Rs 213 per kg.
Copyright Business Recorder, 2021