LAHORE: Business on local cotton market remained stable on Wednesday. Market sources told that traders were cautious in buying because of the forecast of the rains. The quality of Phutti as well as supply of the Phutti was affected due to the monsoon rains. Another reason of significant decline in the local cotton market is because downward trend was witnessed in the international market also.
Sources also told that sowing area of cotton was decreased by 20 percent. The major reason for the decrease in the production of cotton is nonavailability of good quality seeds and failure of concerned departments to control pest pressure.
Ginners were buying Phutti according to their needs. The picking of cotton was affected due to rains in the different parts of the country. Meanwhile, growers and farmers are fearing a loss in cotton crop owing to expected heavy monsoon rains, high temperature and whitefly attack.
Cotton Analyst Naseem Usman told that cotton cultivation land decreased in Punjab by 18%. During the current season, cotton cultivation in Multan district decreased by 25.72%. According to media reports paddy was cultivated in the cotton belt of South Punjab.
Naseem Usman also told that ICE cotton futures climbed to a three week high on Tuesday, as worries about the quality of natural fiber due to hot temperature in Texas were underpinned by a federal report.
The Regional President of International Apparel Federation (IAF) and Chief Coordinator Pakistan Ready Made Garments Association Ijaz A Khokhar said in order to achieve milestone to enhance exports, it is crucial for government to facilitate the export sector and revise its policies which were creating hurdles in the promotion of exports.
Meanwhile President Faisalabad Chamber of Commerce and Industry Rana Muhammad Sikandar Azam Khan while talking to the delegation of powerloom industry demanded that government should restore the supply of electricity at 7.50 percent otherwise export target will not be achieved as well as the rate of unemployment will also increase.
Naseem said that in a sign of troubled trade relations with China, India's export of cotton textile products to China has seen a whopping 74% decline to touch $90 million during the April-June quarter this year.
Naseem Usman told that 1600 bales of Shahdadpur were sold at Rs 8200 to Rs 8225, 2400 bales of Sanghar were sold in between Rs 8150 to Rs 8225, 1400 bales of Hyderabad were sold at 8175 to Rs 8200, 2000 bales of Tando Adam were sold at Rs 8200, 600 bales of Kotri were sold in between Rs 8200 to Rs 8225, 200 bales of Nauabad were sold at Rs 8200, 400 bales of Burewala were sold at Rs 8400 and 200 bales of Chichawatni were sold at Rs 8350.
He told that rate of cotton in Sindh is in between Rs 8200 to Rs 8250. The rate of cotton in Punjab is in between Rs 8350 to Rs 8400.
He also told that Phutti of Sindh was sold in between Rs 3300 to Rs 3600 per 40 kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 3800 per 40 kg.
The rate of Banola in Sindh was in between Rs 1400 to Rs 1450 while the price of Banola in Punjab was in between Rs 1500 to Rs 1550.
The Spot Rate remained unchanged at Rs 8200 per maund. The polyester fiber was available at Rs 155 per kg.
Copyright Business Recorder, 2020
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