KARACHI: In the local cotton market during the last week, bullish trend prevailed after fluctuations. The big textile groups are buying good quality cotton on high rates in large quantity due to deteriorating quality of cotton day by day.
The rate of good quality cotton one reached at Rs 15500 per maund which was highest in the season while the rate of good quality Phutti was reached at Rs 7000 per 40 kg while in Balochistan it reached at Rs 7400 per 40 kg.
Local textile mills were buying cotton locally because of high rates in international cotton market as well as due to the high rates of dollar and shipment.
Ginners were also interested in selling cotton because they don't know at which time the market dipped because there is unprecedented fluctuation and uncertainty in the market. This year cotton farmers are getting satisfactory rates of cotton that's why taking advantage of the high rates they are interested in selling Phutti. Most of the ginners are over sold because they can face loss if they retain Phutti at a time when rates are so high.
Trading volume is good and almost 80 to 90 laats are reaching ginning factories. Experts are of the view that Phutti will reach ginning factories with this pace in the coming 20 to 25 days. This year according to the government estimates 93 lac bales will be produced in the country while according to the estimates of the private sector 85 lac bales will be produced in the country.
However, cotton production increased in the country as compared to last year. The reason behind increased production is favourable weather conditions. Although, this year the cultivated area is less but due to increase in per acre yield it is expected that production will be increased.
It may be noted that it is only possible when steps will be taken to save cotton crop from the attack of White fly, Milli Bug and Pink Ball Worm. According to the information in some areas pests had attacked cotton crop due to which farmers are worried.
The rate of cotton in Sindh after fluctuation was in between Rs 12000 to Rs 15500 per maund. The rate of Phutti was in between Rs 4200 to Rs 6300 per 40 kg. The rate of Banola was in between Rs 13500 to Rs 1900 per maund. In Punjab the rate of cotton reached at Rs 14500 to Rs 15400 per maund which is highest in the season. The rate of Phutti was in between Rs 5500 to Rs 7000 per 40 kg. The rate of Banola was in between Rs 1600 to Rs 2200 per maund.
The rate of cotton in Balochistan was in between Rs 13800 to Rs 14600 per maund. The rate of Phutti was in between Rs 6200 to Rs 7400 per 40 kg. The rate of Banola was in between Rs 1500 to Rs 2100 per maund. The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 700 per maund and closed it at Rs 15000 per maund which is highest in the history of Pakistan.
According to USDA weekly export report, more than 300,000 bales, 91,000 were exported which was 167 percent more as compared to last week. This time too China was on number one with 272,000 bales while Turkey was on number second with importing more than 76,000 bales. This time Pakistan had not signed any import agreement. In this way more than 117,000 bales were sold which was 23 per cent more as compared to last week.
This week unprecedently, the Rate of Promise (Waday Ka Bhao) of New York Cotton decreased despite increase in export and sales. Increasing trend was witnessed in the rate cotton in Brazil, Central Asian states, Africa and Australia but unprecedented increase was recorded in the rate of cotton which was per candy (356 kg) which after continuously increasing the rate of Shankar reached at the highest level of Rs 61700.
Moreover, tussle continued between APTMA and value added sector in the issue of export of cotton yarn. The value-added textile sector has demanded an immediate ban on cotton yarn export and total elimination of the regulatory duty on import of raw material.
According to the information, the future of organic cotton in the country is bright and it is expected that production of organic cotton will be double this year and it will increase further in the coming years. Organic cotton is being produced especially in Balochistan while it is also being cultivated in some areas of Punjab.
Pakistan Cotton Standard Institute Multan is working hard to increase the production of cotton while Pakistan Cotton Ginners Association is very active and holding talks with the members of different chambers of commerce and industry.
Copyright Business Recorder, 2021