The prices of cotton witnessed an extraordinary decrease of Rs 400 per maund. 60 lac bales will be imported. All Pakistan Textile Mills Association demands restoration of zero rated facility. Textile products manufacturers demands that refunds should be immediately paid.
In the local cotton market during the last week due to the lack of interest in buying by the spinning and textile mills and ginners the prices of cotton decreased by Rs 400 to Rs 500 per maund. Good quality cotton was sold between Rs 9000 to Rs 9100 per maund but buyers were present in small numbers in the market and trading volume decreased.
Almost no buyer of low and middle level quality cotton was present in the market. Ginners want to sell their cotton as early as possible in order to save themselves from heavy loss. The quality of cotton was already not so good but rains further affected the quality. Mill owners were of the view that cotton of this quality will be used after mixing it with the imported cotton and already bought good quality cotton.
The rate of cotton in Sindh is in between Rs 7600 to Rs 9000 per maund while the rate of Phutti is in between Rs 2800 to Rs 4100 per 40 kg. The rate of cotton in Punjab is in between Rs 8500 to Rs 9100 per maund while Phutti was available in between Rs 3200 to Rs 4400. In Balochistan the rate of cotton is in between Rs 8200 to Rs 9000 per maund while the rate of Phutti is in between Rs3600 to Rs 4400 per 40 kg. The Spot Rate Committee of Karachi Cotton Association has decreased the rate by Rs 300 per maund and closed it at Rs 9000.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that big textile groups are signing agreements for the import of cotton in substantial quantity from foreign countries. Up till now they had signed agreements for the import of 30 lac bales and they are signing more agreements.
Few days back chairman APTMA Dr Amanullah Kassim Machiyara addresses second press conference in ten days in which he said that this year production of cotton decreased drastically. Textile mills need one crore 50 lac (15,000,000) bales while it is expected that 90 lac bales will be produced. 60 lac bales will be imported from abroad to fulfill the demands of local textile industry.
Moreover, textile sector is in financial crunch because government is playing delaying tactics in refunding sales tax refund of Rs 80 billion of textile sector. He demanded that government should restore the zero rated facility for the exporters so that the exports will be increased. Moreover, towels manufacturers association has also demanded that government should release their sales tax refund of Rs 75 billion.
The exporters were in financial crunch and it was also affecting exports. Naseem Usman told that mixed trend was seen in international cotton market. The trade conflict between America and China is lingering on. The fluctuation was seen in Rate of Promise (Waday Ka Bhao) of New York Cotton due to both positive and negative news regarding America and China trade conflict.
According to the weekly USDA report till November 7 increase of 110 percent was seen as compared to last week. It is welcoming that China had imported 83300 bales from America in the second week while Pakistan is on the top of the list by importing one lac seventeen thousand bales of American cotton. It is expected that increase of export of American cotton during the week will have a positive impact on the rate also.
The rate of cotton remained stable in China while bearish trend was seen in India. The exporters of cotton in India are demanding that government should at least allow them to export cotton to Pakistan because for the last many years Pakistan is importing cotton from India as the price of Indian cotton is low and its shipment was easy.
Moreover, in the elections of six member Advisory Committee of Karachi Cotton Association 2019-20 the candidates of Naseem Usman panel of Cotton Brokers Forum were elected unopposed. Naseem Usman chairman; Abdul Jalil Khan vice chairman; Taqi Abbas secretary; Chandar Laal joint secretary; Ali Muhammad Tofeeq Haroon treasurer and Gardari Laal Aswad Mal public relation.
Chairman Naseem Usman thanked 320 brokers of Karachi Cotton Association for trusting him and his panel. He assured them he will come up to their expectations and work for the interests of the brokers.
Comments
Comments are closed.