KARACHI: The local cotton market remained stable on Saturday. Market sources told that trading activity was low. Cotton Analyst Naseem Usman told that cotton farmers are yet another group badly affected. Pakistan witnessed lowest national production which never happened in the last few decades, all because of non-performing seed varieties, outdated seed technologies and unfavourable climatic conditions for cotton plants. Again, the government could not come up with a solid plan to resolve these long-standing issues, especially the seed varieties and seed technology, he regretted.
He also told the government may need 2-3 billion of dollars on the import of cotton, wheat and sugar this year due to shortage in local production but the bill may further rise in the years to come if the government continues to ignore this sector. Meanwhile, Pakistan's top economic decision-making body, the Economic Coordination Committee (ECC), is expected to approve a new five-year textile policy this week, with incentives worth more than Rs900 billion ($5.6 billion) for the industry and an aim to increase exports to $21 billion in five years, officials have said.
Textiles make up more than half of Pakistan's exports, but have lost ground to South Asian neighbours in recent years, hurt by chronic energy shortages and underinvestment in machinery. Naseem also told that Pakistan's textile sector has helped the country pass through a difficult phase, especially during 2020, which is still a threat to the entire world.
Covid-19 was the biggest challenge for the outgoing 2020, which disrupted global economies and their supply chains. Pakistan too felt the heat of the deadly virus, starting late February, but surprisingly within a couple of months, the country's textile industry was back on track.
Textile sector is called the backbone of Pakistan's economy as it enjoys around 60% share in total exports. Its contribution to the national gross domestic product (GDP) is 8.5% and it employs around 15 million people, directly and indirectly.
Stakeholders, however, are worried over Pakistan's minuscule share in global textile exports. Pakistan's share was calculated at 1.7% in 2019 out of the $941 billion world textile market and it may have remained stagnant in 2020 since very few textile houses were working on real value-added products.
Earlier, the Cotton Vision 2015, launched in 2011 during the tenure of Pakistan Peoples Party (PPP) government, had envisaged that cotton production would jump from 10.6 million bales to 20 million bales in 2015 - or even earlier. That did not happen. In fact, the cotton production in 2015 tanked to 10 million bales or just half the targeted volume. This speaks volumes about the quality of "visions" that policymakers continue to present to please the government of the day.
Naseem told that 1200 bales of Yazman Mandi were sold at Rs 9750 per maund. He told that rate of cotton in Sindh was in between Rs 8800 to Rs 10,000 per maund. The rate of cotton in Punjab is in between Rs 9500 to Rs 10,300 per maund. He also told that Phutti of Sindh was sold in between Rs 4000 to Rs 4700 per 40 kg. The rate of Phutti in Punjab is in between Rs 4000 to Rs 5200 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1500 to Rs 1825 while the price of Banola in Punjab was in between Rs 1600 to Rs 2200. The rate of cotton in Balochistan is Rs 9200 per maund.
The Spot Rate remained unchanged at RS 9950 per maund. The price of Polyester Fiber was increased by Rs 5 per kg and was available at Rs 178 per Kg.
Copyright Business Recorder, 2020
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