KARACHI: The cotton market remained stable on Tuesday. Market sources said that due to the increase in the prices of local cotton people have started importing cotton from Barazil and Argentina.
Cotton Analyst Naseem Usman told that Spot Rate Committee of Karachi Cotton Association will issue new spot rate on July 1. The rate of cotton imported from Barzil is Rs8200 per maund while the rate of cotton imported from Argentina is Rs7800 per maund.
Naseem said that government will extend the date of duty free import of cotton which is expired on June 30. The textile mills were taking interest in the buying of new and old cotton as the mills have started getting export orders.
He also told that 400 bales of old cotton of Sanghar were sold at Rs6200 per maund, 400 bales of Adilpur at Rs7700, 400 bales of Ghotki at RS7800, 1400 bales of Yazman Mandi at Rs8500, 488 bales of Haroonabad at Rs8000 and Vehari at Rs7850.
100 bales of new cotton of Bureawala were sold at Rs9000 per maund, 1000 bales of Tando Adam at Rs8500 to Rs8550 and 800 bales of Sanghar at Rs8500 to Rs8550.
He also told that the government has decided to abolish 5% sales tax on Banola. Earlier, a delegation of Pakistan Cotton Ginners Association met minister for National Food Security Fakir Imam. The minister briefed the delegation about the efforts which are under way to develop the agriculture sector on scientific lines to enhance yield of major crops including wheat, cotton and rice. He also said that production of cotton in the country can be increased by using the latest scientific techniques. The matters related to tax refunds and liquidity crunch and abolishing of sales tax on Banola were discussed in the meeting.
According to the estimates ginners had the stock of 200,000 to 250,000 bales.
Every year the cultivated area and production of cotton was announced by Federal Committee of Agriculture but this year nothing was announced from them may be they announced the estimates after thorough review.
Naseem said that according to the news reports Locusts attack on the fields in Rahim Yar Khan and Khairpur and destroyed different crops.
Usman told that minister for National Food Security and Research Syed Fakhir Imam in a press conference showed his apprehension that Locusts may attack Pakistan in July. They can come from Afghanistan, Iran, Africa, Uman and from India. The government of Pakistan is taking steps to save the crop from the attack of Locusts. In this regard National Disaster Management Authority has ordered 11 aero planes for spraying in the fields. He also said that China is also helping us in controlling the Locust attack.
Naseem further said that it is expected that rains started from June 23 and it will continue till July 2. The rains will be good for the cotton crop.
Naseem Usman also said that rate of new cotton of Sindh and Punjab is in between Rs8350 to Rs9000 per maund. The rate of old cotton is in between Rs6500 to Rs8300 per maund.
He told that Phutti of Sindh was sold in between Rs4100 to Rs4375 per 40 kg. The rate of Phutti in Punjab is in between Rs4300 to Rs4400 per 40 kg.
The rate of Banola in Sindh was in between Rs1800 to Rs1900 while the price of Banola in Punjab was in between Rs2000 to Rs2100.
The Spot Rate remained unchanged at Rs8200 per maund. The polyester fiber was available at Rs157 per kg.
Copyright Business Recorder, 2020