Selective buying on cotton market
KARACHI: The local cotton market on Friday remained stable and trading volume remained low.
The Spot Rate remained unchanged at Rs 16100 per maund. The polyester fiber was available at Rs 247 per kg. Cotton Analyst Naseem Usman told that the rate of cotton in Sindh remained between Rs 13000 to Rs 16,800 per maund and the rate of cotton in Punjab was registered at Rs 14,300 to Rs 16,700 per maund.
The rate of the new crop of Phutti in Sindh was remained between Rs 4500 to Rs 7,200 per 40 kg. While Phutti prices in Punjab were between Rs 5,800 to Rs 8,000 per 40 kg.
Similarly, prices of cotton in Balochistan were remained at Rs 13,800 to 16,400 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 in between Rs 1350 to Rs 2,000 per maund. While in Punjab rates of Banola were in between Rs 1650 to Rs 2,200 per maund.
800 bales of Khair Pur were sold at Rs 13500 per maund, 1200 bales of Mian Wali were sold at Rs 16500 per maund, 1200 bales of Haroonabad were sold at Rs 16000 per maund, 400 bales of Ali Pur, 800 bales of Yazman Mandi and 8000 bales of Lodhran were sold at Rs 15800 per maund.
Central Chairman of Pakistan Yarn Merchants Association (PYMA), Saqib Naseem has said the 11 percent custom duty on polyester yarn needs to be brought down to 7 percent as done in the past when the previous governments provided this much-needed relief through textile packages that led to improving the overall productivity of textile manufacturers and also enhanced exports.
Although the government in this year's budget announced to bring custom duty down to 9 percent but that stands unchanged at 11 percent.
Similarly, the anti-dumping duty also needs to be abolished in the larger interest of textile sector otherwise the export targets will not be achieved due to likely cotton shortages and higher customs duties, he added while exchanging views at a meeting during the visit of PYMA delegation to Karachi Chamber of Commerce & Industry (KCCI).
General Secretary Businessmen Group AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi and the Members of KCCI and PYMA's Managing Committees were also present at the meeting.
Central Chairman PYMA pointed out that commercial importers of yarn act as a bank for thousands of small-sized textile industries who cannot afford to import huge quantities of yarn but obtain this essential raw material from commercial importers therefore, the importers should be provided relief by reducing the exorbitant duties and duties which have to be brought at par with industries.
He was of the opinion that prices of polyester yarn have risen sharply due to rising oil prices, increase in freight charges and the global shortage of containers.
As a result, the textile industry, small and medium enterprises, especially power looms, were suffering due to high costs therefore, custom duties and taxes have to be brought down drastically.
Saqib Naseem further requested KCCI to help in convincing the government to bring down the turnover tax back to 0.1 percent as many people were finding it hard to continue their business with high turnover tax due to limited margin.
He also said that KCCI and PYMA have been enjoying cordial relations and it was heartening to see that many PYMA members have also discharged their duties at KCCI's Managing Committee from time to time. "All PYMA members will go hand-in-hand with KCCI so that we could collectively work towards not only resolving PYMA issues but also other general issues of the business & industrial community", he added. President KCCI Muhammad Idrees stated that the Karachi Chamber gives highest preference to all the issues being faced by PYMA members which were constantly being taken up with relevant ministers, advisors and all the authorities at the federal level.
Copyright Business Recorder, 2021
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