LAHORE: Thin trading activity was witnessed on the cotton market on Wednesday due to lack of motivating factors among participants.
Cotton Analyst Naseem Usman told Business Recorder that Spot Rate remained unchanged. He also told that rate of cotton in Punjab and Sindh is in between Rs 18000 to Rs 20,000 per maund. 400 bales of Rajan Pur were sold at Rs 19200 per maund.
Cotton Analyst Naseem Usman told that the timely decision by the government of announcing the support price of cotton will increase the production of cotton in the country in the coming season.
The ECC approved Rs5,700/40kg threshold intervention price of seed-cotton for 2022-23 to revive the cotton production as well as bring about stability in domestic price and to ensure fair return to the farmers.
The decision was taken on a summary moved by the Ministry of National Food Security and Research regarding intervention price for cotton 2022-23 crop.
The ECC meeting further allowed to initially procuring two million bales of cotton at intervention price with the direction that the quantity would be reviewed on a monthly basis.
The ECC approved the allocation of an additional Rs11.73 billion TSG for covering expenditure on payment of PDC up to 31st March 2022 on a summary moved by the Petroleum Division to address the PSO and other Oil Marketing Companies (OMCs) concerns over the mechanism of payment.
Malik Talat Sohail, Executive Member, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Pakistan Cotton Ginners Association (PCGA) said that sowing season has formally started in Punjab for the season 2022/23 in a field developed at Khanewal under the auspices of Khaksar Crop Sciences.
Malik Sohail said that last year we launched a campaign to save the economy by growing cotton and we will continue it till the economy is fully restored. Our awareness campaign yielded the best results with the additional production of 2 million bales of cotton.
In the past, the economy has been in a state of disarray due to inattention to white gold, which is a deliberate scheme of the enemy of the country. He said that price of sugarcane has come down to Rs200 per mnd, whereas last year the price of cotton was up to Rs 10,000 per mnd. As a result, cotton growers have received adequate compensation for their produce. Cotton growers are also likely to get higher compensation than other commodities in the coming cotton season.
It should be noted that the process of cotton cultivation in Sindh has started from last 15 days. Considering the futures trading in the international markets, the price of cotton in the coming cotton season will also be higher than that of other crops. Advance deals for the new crop in June have started at Rs8500 to Rs9000 per mnd.
High cotton production guarantees the development of the country. MD khaksar crop sciences Rana Muhammad Tahir GM Khalid Haider and Malik Tanveer Arshed also present at the Occasion. Moreover, the country’s textile group exports witnessed 26.08 percent growth during the first eight months (July-February) of the current fiscal year and remained $12.607 billion compared to $9.99 billion during the same period of the last fiscal year, says the Pakistan Bureau of Statistics (PBS).
The textile group exports increased by 7.92 percent on month-on-month basis and remained at $1.674 billion in February 2022 compared to $1.55 billion in January 2022.
The exports and imports data released by the PBS revealed that the country’s overall exports in February 2022 were $2.820 billion (provisional) as compared to $2.614 billion in January 2022 and showing an increase of 7.88 percent as compared to $2.068 billion in February 2021.
On a year-on-year basis, textile group exports witnessed 35.5 percent growth in February 2022, when compared to $1.234 billion in February 2021.
Cotton yarn exports registered a growth of 34.4 percent during July-February 2021-22 and remained at $1.584 billion compared to $1.235 billion during the same period of last year, and increased by 6.03 percent in February 2022 and remained $127.28 million when compared to $120.26 million during the same month of last year. The Spot Rate remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 285 per kg.
Copyright Business Recorder, 2022
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