KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Saturday increased the spot rate by Rs 50 per maund and closed it at Rs 14050 per maund. Cotton Analyst Naseem Usman told Business Recorder that the local cotton market remained bullish and the trading volume was good.
The rate of cotton in Sindh is in between Rs 13800 to Rs 14300 per maund and the rate of cotton in Punjab is in between Rs 14100 to Rs 14300 per maund which is highest in ten years. The rate of the new crop of Phutti in Sindh was in between Rs 5800 to Rs 6200 per 40 kg. The rate of Phutti in Punjab is in between Rs 5800 to Rs 6250 per 40 kg. The rate of Banola in Sindh is in between Rs 1750 to Rs 1900 per maund. The rate of Banola in Punjab is in between Rs 1750 to Rs 1900 per maund. The rate of cotton in Balochistan is Rs 14000 per maund. The rate of Phutti in Balochistan is Rs 6200- 7000 per maund.
Around 400 bales of Rohri, 400 bales of Saleh Pat were sold at Rs 14200 to Rs 14300 per maund, 600 bales of Khair Pur were sold at Rs 14000 to Rs 14100 per maund, 800 bales of Sanghar were sold at Rs 13850 per maund, 1800 bales of Tando Adam were sold at Rs 13850 to Rs 14000 per maund, 800 bales of Khanewal, 600 bales of Kabeerwala, 200 bales of Bago Bahar, 400 bales of Haroonabad, 400 bales of Chichawatni, 200 bales of Faqeerwali, 1200 bales of Fort Abbas, 2600 bales of Ghazi Ghat, 200 bales of Kassowal, 200 bales of Layyah were sold at Rs 14300 per maund, 200 bales of Mian Channu were sold at Rs 14250 per maund and 400 bales of Hasil Pur were sold at Rs 14200 to Rs 14300 per maund.
The garments and home textile sectors urged the federal government to allow a duty-free import of cotton and its yarn from India, Uzbekistan and Turkey through land routes since local market has run out of the input commodities.
In a letter, also made available to Business Recorder on Friday, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) sought help from Abdul Razak Dawood, Adviser to the Prime Minister for the struggling apparel textile exporters.
Subject of the letter says that the PHMA wants permission for the duty-free import of cotton and its yarn from India, Uzbekistan and Turkey through roads and railways.
"Cotton yarn prices have been increased by approximately 40 percent to 70 percent (for different yarn counts 20/s, 30/s etc) and even on this exorbitant price cotton yarn is not available," according to the letter undersigned by Chief Coordinator, PHMA Muhammad Javed Bilwani.
The available cotton yarn is of a substandard quality that further forced the exporters to hold up signing fresh deals for global markets, the letter says.
"The situation has also compelled the exporters not to take further new orders and for the reason such export orders meant for Pakistan shall be diverted to other regional countries," it adds.
Freight charges of the sea trade have also soared very high by increased approximately 700 percent with shortages of cargo containers and vessels that made the shipment delivery time from 45 days to 90 days, it points out.
"Therefore, the government must support and facilitate the value-added garment and home textile exporters in the growing crisis of unavailability of vessels and containers on war footing basis," the PHMA says in the letter.
It suggests an effective way to deal with the crisis by importing the input commodity through "the shortest possible land routes to import cotton yarn are from India, Uzbekistan and Turkey" to help augment manufacturing and export.
"The estimated time for ECO freight train to travel from Islamabad to Turkey is 10 days, it says that transportation span by road from Pakistan to Turkey is approximately 72 hours and Uzbekistan 48 hours.
ICE cotton futures were primed for their third weekly gain in the past four weeks on Friday, propped up by a weaker dollar and stable demand.
Cotton contracts for December were up 0.57 cent, or 0.6%, to 94.73 cents per lb, by 12:57 pm EDT (1657 GMT).
The December contract has gone up about 1.7% so far this week, rebounding from the previous week's dip. This past week, "price action has been quite constructive, as several attempts to sell off have been thwarted.
Total futures market volume fell by 2,318 to 13,352 lots. Data showed total open interest fell 319 to 269,525 contracts in the previous session. The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 50 per maund and closed it at Rs 14050 per maund. The Polyester Fibre was available at Rs 222 per kg.
Copyright Business Recorder, 2021
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