KARACHI: Official spot rate was firm on the local cotton market on Monday amid modest trading activity.
The Spot Rate remained unchanged at Rs 15400 per maund. The polyester fiber was available at Rs 247 per kg.
The rate of cotton in Sindh remained between Rs 12500 to Rs 16,000 per maund and the rate of cotton in Punjab was registered at Rs 14,200 to Rs 15,600 per maund.
The rate of the new crop of Phutti in Sindh was remained between Rs 4,500 to Rs 6,500 per 40 kg. While Phutti prices in Punjab were between Rs 5,500 to Rs 7,500 per 40 kg.
Similarly, prices of cotton in Balochistan were remained at Rs 13,800 to 16,000 per maund while Phutti prices were high as compared to other two provinces which were Rs 6,200 to 8,000 per maund, said Naseem Usman.
The rate of Banola in Sindh was between Rs 1,350 to Rs 2,000 per maund. While in Punjab rates of Banola were between Rs 15,50 to Rs 2,000 per maund. The rate of Banola in Balochistan today was Rs 16,000 to 2,000 per maund.
1000 bales of Khair Pur were sold at Rs 14600 to Rs 15200 per maund, 800 bales of Rohri were sold at Rs 14800 to Rs 5200 per maund, 400 bales of Sadiqabad, 200 bales of Kot Sabzal were sold at Rs 16000 per maund, 200 bales of Bahwal Pur were sold at Rs 15200 per maund, 200 bales of Faqeer Wali were sold at Rs 15300 per maund, 800 bales of Yazman Mandi, 1600 bales of Haroonabad were sold at Rs 15000 per maund, 400 bales of Bahawal Nagar were sold at Rs 14300 per maund and 400 bales of Sehar Sultan were sold at Rs 14825 per maund.
Cotton Analyst Naseem Usman told that surging cotton rates in local and global markets are feared to hit Pakistan's textile exports hard as a huge increase in cost of production would drastically compromise their competitiveness.
Spike in the cotton prices comes at a time when textile exports are on an upward trajectory, while the largest exporting sector struggles with high cost of energy, shortage of gas, rising shipping charges, etc.
Pakistan's textile exports in the first quarter of this fiscal year rose 27 percent to $4.420 billion compared to $3.469 billion in the same period of the previous year.
Cotton rates surged to Rs16,000/maund (37.2kg) in Sindh, the highest in the season, whereas they are also witnessing a rising trend in Punjab and Balochistan, according to cotton arrival reports. Because of the high cost of cotton, the textile sector has started pondering over how to deal with the situation.
The textile millers in Faisalabad region recently huddled up to find a solution to maintain the growth momentum in textile exports. According to cotton brokers, high prices of cotton are putting textile mills into tight financial spot as they are compelled to buy cotton on credit, creating debt.
On the other side, prices have also gone up in world market and this hike has become more pronounced for Pakistani importers due to a massive depreciation of rupee against dollar in the last several months.
Copyright Business Recorder, 2021