KARACHI: Cotton market hardly witnessed any activity on Friday as all the stakeholders were looking towards the government announcements for the industry and textile sector in the budget 2020-21.
Market sources told that cotton market remained stable. 600 bales of cotton from Tandoo Adam was sold at Rs7950 per maund.
Business community is hopeful that government will announce relief for the community in the upcoming budget.
Cotton Analyst Naseem Usman told that in its last minutes efforts before the announcement of the budget 2021 All Pakistan Textile Mills Association (APTMA) in a letter to Adviser to PM on Commerce and Textile Abdul Razak Dawood on Thursday asked for the continuation of energy package for export industry to ensure provision of electricity at 7.5 cents per unit and RLNG at $6.5 per mmbtu in next budgetary year.
In the outgoing year, the energy package has directly resulted in a volumetric increase of 32 percent of textiles over the last 18 months. This significant increase in volumes has come in a highly competitive international market where unit prices of products have fallen by as much as 26 percent.
The APTMA said: "As a result of COVID-19 a lot of the major retail chains in the US and EU are filing for bankruptcy; those that remaining are forcing up to 30 percent discounts and delayed shipping on orders already placed and in some cases shipped. By all accounts demand for textiles has crashed and is unlikely to attain the previous levels for the foreseeable future. Competition for the remaining market where price levels will be substantially low is likely to be intense."
Naseem said that according to international news channel attack of locust is the biggest threat than coronavirus. He told that according to the sources a joint meeting between Pakistan and India on the issue of locust attack is scheduled to be held on June 18 in the Indian city of Munabao. He said that it is expected that six meetings will be held between the two countries regarding evolving a joint strategy on saving the crops from locust attack.
Sources said in this regard a joint wireless system will be established in the Indian city of Jodhpur and Karachi (Pakistan) for exchanging the information on locust between the two countries.
According to former chairman of the standing committee on agriculture produce of the FPCCI and Secretary-General (Federal) of the Businessmen Panel Ahmad Jawad has said Pakistan imports a substantial quantity of soyabeans to feed its poultry, and now "we can be seen catching locust as a good replacement of soyabean because it has more protein".
Amid the rising locust threat in Pakistan, he said that Prime Minister Imran Khan backed an idea for dealing with the locust threat in the country under which the government would provide financial incentives to the people for catching locusts and then selling these insects to poultry farmers who could use them as poultry feed. The prime minister endorsed the proposal while chairing a meeting of the federal cabinet two days back.
He warned that if we didn't control locusts properly this year the country could suffer about US$3 billion loss due to locust attacks and a reduced harvest could increase inflation in the country.
Currently the entire country was under the threat of an attack by desert locusts but around 37 percent area of Pakistan was more vulnerable to such attacks.
Meanwhile, National Agromet Centre has warned that around 10 percent higher rains, expected in the upcoming monsoon season, are going to provide a perfect environment for the locusts to thrive, which in the absence of drastic countermeasures could prove disastrous for the country's agriculture production.
This above average amount of rainfall and resultant extensive growth of vegetation would be ideal for new invading swarms in June and July from Africa and other south and south-western breeding areas.
According to Food and Agriculture Organization (FAO) of the United Nations, the number of locusts is feared to grow 400 times by June onward and is likely to cause a crisis if left unchecked.
According to the latest assessment of National Agromet Center, locust has been confirmed in 53 districts of Pakistan. Balochistan is leading with 33, followed by Khyber Pakhtunkhwa with 10, Sindh 08 and Punjab with 02 districts at present. Early migration of spring-bred swarms from southwest Pakistan to Rajasthan, India occurred in May before the monsoon. Control operations are underway by using insecticides.
As precautionary measures, widespread and appropriate insecticides spray using aeroplanes/helicopters or special vehicles in the affected areas, is the only solution to control the spread of locust. Otherwise, an environment conducive to locust breeding during monsoon season would multiply the insects massively.
Naseem said that both federal and provincial governments along with Pakistan Army had taken steps on war footings to control the attack.
He also said that there is uncertainty regarding the exact estimates of cotton production in the country. The situation of cotton crop in lower Sindh is satisfactory. Sowing is still going on in Punjab.
Naseem Usman also said that it is first time in the history of Pakistan that seed companies are buying Banola between Rs2500 to Rs2600 per maund for using it as seed. The seed of good quality is not available in the market.
Naseem Usman told that Phutti of Sindh was sold in between Rs3800 to Rs4000 per 40 kg.
He also said aid that Spot Rate remained unchanged Rs8300 per maund. The rate of cotton in Sindh and Punjab is in between Rs6500 to Rs8400 per maund. The polyester fiber was available at Rs155 per kg.