Little business activity on cotton market

LAHORE: The local market on Monday remained stable and the trading volume remained low.

Cotton Analyst Naseem Usman told that rate of cotton in Punjab and Sindh is in between Rs 22000 to Rs 23,000 per maund.

3100 bales of Ghotki and Rahim Yar Khan were sold at Rs 22250 to Rs 23200 per maund.

The new Kappas from Pengriyo was available at Rs 9000, the rate of New Kappas from Mirpur Sakharo, Gharo, Ubaro was in between Rs 9000-9100 while the rate of New Kappas from Gularchi, Berani, Kadhan, Badin was in between Rs 8800-9000, Kappas of Digri, Kunri was sold in between Rs 8800-8900, The rate of new Kappas of Chor Jamali was Rs 9000-9200 and Tando Bhago was Rs8800-9000.

The supply of Phutti from Sindh’s began to increase with each passing day. The slight decline in the market caused a stir among the farmers and they intensified the supply in order to make a profit which led to a sharp decline in the market. A spokesman of Punjab Agriculture Department has said that farmers should complete cultivation of cotton by May 31. Only approved varieties of cotton should be cultivated.

The country’s apparel textile sector on Sunday warned the federal government of a ‘disastrous’ implications for the economy if it discontinued the special power tariff to the five export-oriented sectors, saying that the IMF should be told the concessional facilities is not a ‘subsidy.’

The IMF should be informed that the special tariffs and DLTL are not subsidies rather ‘crucial’ export-policy decisions to unburden the export sectors from cross-subsidy to compete with competing nations on the global markets.

“The IMF should be categorically communicated that special energy tariffs and other facility to export industry are wrongly interpreted as ‘subsidy’”, Pakistan Apparel Forum chairman Muhammad Jawed Bilwani said. He warned the government that any ‘unwise’ decision following its talks with the IMF to discontinue special power tariff for five export-oriented sectors and will be ‘disastrous’ for the economy.

The government should understand that the five export sectors re provided with the special energy tariffs at par with those given to industries in the regional countries to ensure the country’s products could compete globally. Similarly, the DLTL (the Duty Drawback on Local Taxes and Levies) is also not a subsidy but a policy measure sparing export goods from taxes, he added.

With such a government policy, he said that textile export remained a top performer with $15.4 billion in 2020-21 and it fetched $15.98 billion with over 25 percent growth in 2021-22 (10 months).

Such a robust growth could become possible through the concessional energy tariffs at $6.5 mmbtu for RNLG and 9 cents for electricity, which was being provided previously to the industry at 7.5 cents, he said. The government should honour its commitment to continue the concessional tariff for export industries beyond June 30, 2022 in ‘the national interest.’ “Therefore, the government should act very wise and thoughtful while taking any decision which will bring any negative impact on exports,” Bilwani said.

The Spot Rate remained unchanged at Rs 22500 per maund. The rate of Polyester Fiber was increased by Rs 2 and was available at Rs 305 per kg.

Copyright Business Recorder, 2022