ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet was informed that none of the markets in Sindh or Punjab witnessed seed cotton prices lower than Rs5000 per 40kg (the benchmark for market intervention).
A meeting of the ECC meeting was updated about cotton prices in domestic and international markets for the month of October 2021.
The meeting was told that the Cotton Price Review Committee (CPRC) met in October and on November 10, 2021 and reviewed weekly cotton prices in local, as well as, in international markets.
Seed-cotton, lint cotton, and cotton seed prices were collected on a daily basis from Hyderabad, Mirpur Khas, Sanghar, Sukkur/ Ghotki, and Khairpur districts of Sindh and Rahim Yar Khan, Bahawalpur, Vehari, Sahiwal, and Dera Ghazi Khan districts of the Punjab province.
For international markets, Cotlook New York Futures prices for December/ March contracts and cotton prices in India were reviewed for corresponding period.
The price data reveals that none of the markets in Sindh or the Punjab witnessed seed cotton prices lower than Rs5000 per 40kg.
ECC takes decisions on sugar, cotton
The import parity price (IPP) of cotton lint has ranged from Rs18,666 to Rs19,583 per 40kg, which translates into seed cotton prices as Rs7,117 to Rs7,404 per 40kg.
The prices in local market in all major cotton growing districts of Punjab and Sindh during October remained between Rs5,696 and 6,043/40kg mainly because of high demand and disruption in sea shipments, which delayed imported cotton.
The ECC was further informed that global high demand and short supply creating pressure on international prices, resultantly, average Cotlook an index price remained above 100 cents during the month of October 2021.
Since cotton prices remained higher than intervention price threshold of Rs5,000/ 40kg during October 2021, the CPRC decided to continue to monitor prices in the domestic and international markets by advising the TCP to remain ready to intervene.
The meeting was informed that average 40kg seed cotton price in Punjab was Rs5,966, while average 50kg seed cotton price in Sindh was Rs5,614 and seed cotton price in Pakistan was Rs5,790, while cotton seed Banola price in Punjab was Rs1,805, in Sindh Rs1,631, and in Pakistan Rs1,718 per 40kg.
The meeting was further informed that lint cotton price in Punjab 40kg was Rs15,060.93 and in Sindh Rs13,809.
Lint cotton price in Pakistan was Rs14,435.
Copyright Business Recorder, 2021