KARACHI: The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 2,000 per maund and it has reached at the highest level of Rs 22,000 per maund. In the same way the rate of cotton in Sindh after increasing is in between Rs 20,000 to Rs 21,000 per maund. The rate of cotton in Punjab reached at the highest level of Rs 20,500 to Rs 21,000 per maund.
Rains continued in most of the cotton-producing areas for almost the whole week, due to which cotton picking was relatively low.
Similarly, as per quality, the price of Phutti in Sindh is Rs 7,000 to Rs 8,500 per 40 kg. The price of Phutti in Punjab is in between Rs 7,000 to Rs 11,000 per 40 kg. Only one or two ginning factories are partially operational in Balochistan because rains had damaged the crop.
The price of cotton in Balochistan is in between Rs 18000 to 18500 per maund while the rate of Phutti is in between Rs 8000 to Rs 11000 per 40 kg.
There are reports of significant damage to cotton due to prolonged rains, however, it is too early to say anything as the rains are still continuing in many areas and there are reports that water is standing in the fields.
According to information, a meeting of the Cotton Crop Assessment Committee has been called on August 22, in which the situation will be cleared to some extent, besides that Pakistan Cotton Ginners Association will release its report on the arrival of cotton in the country till September 1 on September 3.
The textile spinning sector is being badly affected due to the continuous sharp increase in the price of cotton, on the one hand, the quality of cotton is poor, on the other hand, the price is increasing, while the demand and price of cotton yarn and textile products are decreasing. According to the received information many textile mills are closing down while some mills are partially running. The financial crisis is increasing day by day.
In Sindh province, the price of cotton was in between Rs 19,500 to 21,000 per maund, and the price of Phutti was Rs 7,000 to Rs 8,500 per 40 kg. In Punjab province, the price of cotton was in between Rs 20,500 to 21,000 per maund and the price of Phutti was Rs 7,000 to Rs 11,000 per 40 kg.
In Balochistan province, the price of cotton was Rs 18,000 to Rs 18,500 per maund and and the price of Phutti was Rs 8000 to Rs 11,000 per 40 kg. There is also an upward trend in the prices of banola, khal and oil.
Naseem Usman, Chairman of Karachi Cotton Brokers Forum, said that there was an overall upward trend in the price of cotton in the international cotton markets. The rate of Future Trading of New York cotton for the month of closed at 1.16 US cents after fluctuations. In India too, the price of cotton increased sharply. According to USDA’s weekly export and sales report 49,500 bales were sold. China was at the top after buying 30 thousand bales.
Turkey bought 14,600 bales and came second. Honduras was third with 10,900 bales. Nicaragua bought 8,000 bales and ranked fourth. Indonesia bought 7,400 bales and ranked fifth.
Meanwhile, Finance Minister Miftah Ismail Thursday stated that the government’s foremost priority is to promote the export-oriented sectors of the country and in this regard, all possible cooperation would be provided to them.
He stated this during a meeting with representatives from the Aptma at the Finance Division.
Aptma Patron-In-Chief Dr Gohar Ejaz, Aptma Chairman Abdul Rahim Nasir, Chairman North Zone Punjab Hamid Zaman, former Aptma chairman Aamir Fayyaz, Secretary General Aptma Shahid Sattar, senior officers from the FBR, Commerce and Finance Divisions attended the meeting.
The delegation shared with the finance minister about the contribution of the textile sector in the economic development of the country. It was highlighted that this sector contributes heavily to exports and is effectively bringing in substantial dollars into the country.
The finance minister was also apprised about the various issues faced by this sector especially related to sales tax refunds which result in a liquidity crunch for the suppliers of the textile industry.
The finance minister, after comprehensive deliberation over the issues, assured the delegation that the present government’s foremost priority is to promote the export-oriented sectors of the country and in this regard, all possible cooperation will be provided by the present government.
The finance minister further directed the relevant authorities to resolve the issues of the export-oriented textile sector at the earliest. The delegation thanked the finance minister for extending support and resolving the issues of the textile sector.
Copyright Business Recorder, 2022