Business activity remains stable on cotton market

KARACHI: Business activity remained stable on the local cotton market on Monday.

Cotton Analyst Naseem Usman told Seed cotton (Phutti) equivalent to 2.688 million or exactly 2,688,385 bales have reached ginneries across Pakistan till Oct 15, 2020, showing a shortfall by 39.45 per cent compared to corresponding period of last year.

According to fortnightly report, issued by Pakistan Cotton Ginners Association (PCGA) here Sunday, 2.29 million or 2,291,514 bales have undergone the ginning process. Arrivals in Punjab were recorded at 1.2 million or 1,213,908 bales and 1.4 million or 1,474,477 bales in Sindh.

Total over 2 million or 2,024,524 bales have been sold out including 2,007,524 bales bought by textile millers and rest of 17000 by exporters.

Stock of cotton bales lying unsold was calculated at 663,861 bales. Total 564 ginning factories were operational in the country including 223 in Sindh and 341 in Punjab.

Sanghar district of Sindh continued to remain on top showing arrivals of 743,532 bales, says the report.

Chairman Pakistan Cotton Ginners Association Dr Jasso Mall Limani has appealed to the Prime Minister Imran Khan should convene an immediate consultative meeting of the stake holders and take steps to improve the cotton crop which can put the economy of the country on the path of progress.

Cotton Analyst Naseem Usman told that APTMA was not paying Cess Tax to PCCC since 3-4 years nor Federal Govt allocated any budget for Cotton R&D. PCCC paying half salary to all employees and may be no salary for next month's.

He also said that due to the high prices ginners in Lower Sindh were closing the mills adding that instead of making cotton ginners were involved in trading of Phutti.

Mean while, the exports of textile commodities witnessed an increase of 2.92 per cent during the first quarter (Q1) of the current fiscal year (FY) as compared to the corresponding period of last year whereas, on a year-on-year (YoY) basis, exports grew 11.3pc during the month of September 2020 as compared to the same month of last year.

The textile exports from the country were recorded at $3,469.5 million in July-September (FY2020-21) against the exports of $3,371 million in July-September (FY2019-20), showing a growth of 2.92pc, according to data released by the Pakistan Bureau of Statistics (PBS) on Saturday.

Meanwhile, the commodities that witnessed negative growth in traded included raw cotton, exports of which declined by 97.5pc, while the exports of cotton yarn decreased by 42.7pc.

Exports of cotton cloth also decreased by 8.49pc, from $499 million to $457, yarn (other than cotton yarn) by 22.8pc, from $7.2 million to $0.9 million, art silk and synthetic textile by 2.93pc from $77.894 million to $75.615 million whereas the exports of cotton (carded or combed) witnessed 100pc decline during the period under review.

Naseem said that this year Afghanistan has a record crop of cotton and the quality is also said to be very good. Cotton is being exported to Pakistan which is estimated to be around 200, 000 bales. Yesterday Afghani cotton trade deals ranging from Rs 10, 150 to Rs 10,200 were recorded.

He also said that government should allow the import of quality cotton seeds as they had allowed the import of cotton from abroad.

Naseem told that 400 bales of Khanpur, 200 bales of Chistian and 400 bales of Rahim Yar Khan were sold at Rs 10,000.

He told that rate of cotton in Sindh was in between Rs 8600 to Rs 10,000. The rate of cotton in Punjab is in between Rs 9000 to Rs 10,000. He also told that Phutti of Sindh was sold in between Rs 4000 to Rs 5200 per 40 kg. The rate of Phutti in Punjab is in between Rs 4500 to Rs 5400 per 40 kg.

The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1900 to Rs 2200. The rate of cotton in Balochistan is in between Rs 9200 to Rs 9300 while the rate of Phutti is in between Rs 5500 to Rs 5600.

The Spot Rate remained unchanged at Rs 9800 per maund. The rate of Polyester Fiber is increased by Rs 3 per kg across the board. The new price of Polyester Fiber is Rs 156 per kg.

Copyright Business Recorder, 2020