LAHORE: Local cotton market remained stable on Friday however trading activities were affected due to rains in cotton belt of Sindh and Punjab. Market sources told that quality of Phutti as well as supply of the 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 hurricane came too late, about 800,000 acres of new cotton may not be harvested. Experts from Texas A&T University in the United States said that cotton production in the Rio Grande River Basin was devastated by Hurricane Hannah.
Meanwhile ICE cotton futures rose on Thursday after a federal report showing robust exports of US cotton to China relieved producers from fears of losing business due to ongoing trade tensions between the two nations.
As per media reports the government's special electricity tariff for five export oriented sectors including textile beyond June 30, 2020 is said to be in limbo as Finance Ministry has not yet confirmed provision of Rs 1.96 billion subsidy per month.
Moreover, the Federal government is likely to rationalize tariff structure of raw materials used in the textile sector. Naseem further 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 told that 400 bales of Tando Adam, 400 bales of Shahdadpur were sold at Rs 8250, 600 bales of Hyderabad and 800 bales of Sanghar were sold in between Rs 8200 to Rs 8250, 600 bales of Haroonabad were sold in between Rs 8250 to Rs 8500, 400 bales of Burewala, 400 bales of Kasowal were sold at Rs 8475, 400 bales of Mianchannu, 200 bales of Chichawatni were sold at Rs 8500. While 400 bales of Vehari were sold at Rs 8350 and 200 bales of Mongi Bangla were sold at Rs 8475.
He told that the rate of cotton in Sindh is in between Rs 8200 to Rs 8250. The rate of cotton in Punjab is in between Rs 8400 to Rs 8500. He also told that Phutti of Sindh was sold in between Rs 3500 to Rs 3800 per 40 kg. The rate of Phutti in Punjab is in between Rs 3700 to Rs 4000 per 40 kg. The rate of Phutti in Balochistan is in between Rs 3900 to Rs 4000.
The rate of Banola in Sindh was in between Rs 1450 to Rs 1500 while the price of Banola in Punjab was in between Rs 1500 to Rs 1550. The Spot Rate remained unchanged at Rs 8250 per maund. The polyester fiber was available at Rs 155 per kg.
Copyright Business Recorder, 2020
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