KARACHI: The Spot Rate Committee of Karachi Cotton Association on Thursday has increased the spot rate by Rs 50 per maund and closed it at Rs 8350 per maund.
The local cotton market remained stable. Market sources told that quality of Phutti was affected due to the monsoon rains. Picking may also be affected due to rains.
Sources also told that the sowing area of cotton has decreased by 20 percent. The major reason for the decrease in the production of cotton is non-availability of good quality seeds and failure of concerned departments to control pest pressure.
Cotton Analyst Naseem Usman told that the Supreme Court has announced its decision on Gas Infrastructure Development Cess (GIDC), directing recovery of GIDC payables from the industries, on Thursday. The court has ordered companies to pay outstanding amount of Rs 417 billion.
Naseem said that this months 2020-21 US cotton out look includes higher beginning stocks, production, ending stocks and a decline in consumption.
Meanwhile, Federal Board of Revenue directed field formations to provide list of income tax refund cases of Rs 50 million by August 16th for immediate issuance of pending refunds under the prime minister package.
Moreover, Minister for National Food Security and Research Syed Fakhar Imam told the participants of the meeting that farmers are shifting from cotton to other crops due to low prices and to address over all imbalances in cotton industry, effective policy initiatives need to be under taken.
Naseem Usman told that 800 bales of Tando Adam were sold in between Rs 8250 to Rs 8300, 400 bales of Khadro were sold at Rs 8350, 200 bales of Gup Chani were sold at Rs 8325, 200 bales of Shahpur Chakar were sold at Rs 8325, 400 bales of Kotri, 400 bales of Hyderabad were sold at Rs 8250, 1400 bales of Sanghar, 800 bales of Shahdadpur were sold in between Rs 8250 to Rs 8300, 200 bales of Haroonabad, 200 bales of Samundri and 400 bales of Chichawatni were sold at Rs 8600.
He told that rate of cotton in Sindh was in between Rs 8250 to Rs 8350.The rate of cotton in Punjab is in between Rs 8600 to Rs 8700. He also told that Phutti of Sindh was sold in between Rs 3500 to Rs 3700 per 40 kg. The rate of Phutti in Punjab is in between Rs 3700 to Rs 4000 per 40 kg.
The rate of Banola in Sindh was in between Rs 1500 to Rs 1550 while the price of Banola in Punjab was in between Rs 1650 to Rs 17500.
The Spot Rate Committee of Karachi Cotton Association has increased the rate of cotton by Rs 50 per maund and closed it at Rs 8350 per maund. The polyester fiber was available at Rs 155 per kg.
Copyright Business Recorder, 2020