KARACHI: The Spot rate decrease by Rs 100 per maund. Over all bearish trends prevail in the international cotton markets. Different government departments claim to plan to give priority to the cotton crop. Conspiracies are hatched to decrease the industrial and agricultural production of the country. At the behest of the International Monterey Fund (IMF), the powers of the State Bank of Pakistan (SBP) have been greatly increased. On the directions of IMF, the power tariff is being increased by five rupees and sixty-five paisa as a result of which burden of Rs 884 billion will bear by common man.
In addition, the President of Pakistan is about to abolish tax exemptions of Rs 290 billion through an ordinance. Does it seem that Pakistan’s industry, trade and agriculture are not being hollowed out?
In the local cotton market during the last week the rate of cotton remained stable. Fluctuation was seen in rate of cotton in international cotton market but up and down was witnessed in the Rate of Promise (Waday Ka Bhao) for May which was in between 83 to 86 American cents. According to some people it looks that situation remains the same for some time.
According to the report of Pakistan Cotton Ginners Association ginners had left the stock of one lac twenty five thousand bales. This stock cannot full fill the demands of two days because per month demand is of 13 lac bales. There is very limited stock left. Some mills are buying cotton in compulsion that’s why the rate of cotton is not decreasing. Although, the rate of yarn is started decreasing. The reason behind is that the rate of dollar decreased by Rs 12 and in the last month the rate of dollar decreased by Rs 2 to Rs 4.
The tension between All Pakistan Textile Mills Association and Value Added Sector may decrease because Value added sector complained about non availability of yarn on competitive rates. It looks that that they will start ginning yarn on competitive rates. The second reason is that exports of value addition sector and the spinning sector who export yarn will suffer because of the decrease in the rate of dollar.
This cotton season almost ends, now it’s time to think about next season. Agriculture minister Sindh, agriculture minister Punjab and federal minister for National Food Security are trying their best to increase the production of cotton.
Pakistan Cotton Standard Institute Multan has developed seeds having germination capacity of 75 % to 80%. Let’s see how it is possible. It is premature to say anything regarding next year’s cotton production. It is hoped that if weather conditions remained favorable then crop will be good.
The rate of cotton in Sindh is in between Rs 10200 to Rs 11500 per maund. The rate of Phutti which is available in limited amount is in between Rs 4800 to Rs 5200 per 40 Kg. The rate of cotton in Punjab is in between Rs 10,400 to Rs 12500 per maund while the rate of cotton on lending basis is Rs 12700 to Rs 13000 per maund. The rate of Phutti which is available in limited amount is in between Rs 4800 to Rs 6200 per 40 Kg.
The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs 100 per maund and closed it at Rs 12200 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that international cotton market witnessed over all bearish trend. Fluctuation was witnessed in the rate of New York Cotton. According to the experts the rate of New York Cotton will remain between 83 American cents to 86 American cent. Other than that according to USDA weekly export report there is an improvement in exports as compared to last week. This week Vietnam was number one with one lac thirty five thousand bales, China is on number two and Pakistan is on number three. This means that China is continuously importing American cotton. Other than that the rates of cotton in decreasing trend was witnessed in Brazil, Argentina and Central Asia. In India sometimes the rate increase by Rs 100 per candy and some time decrease by Rs 100 per candy. Over all the rate of cotton remained stable in India.
Moreover, there are demands that import of cotton and cotton yarn from India may start. APTMA is against importing cotton and cotton yarn from India, while Value added sector is in favor of it. But in India and in other international cotton market the rates of cotton are not decreasing so much but if the rate of cotton is in between 85 or 86 American cent then mills will not buy it in high quantity, because of fear; but if they buy they will buy in small quantity.
Up till now it looks that there is no need of importing cotton from India which APTMA is also saying but Value added sector is continuously complaining that they are not getting local yarn on competitive rates. Sources are claiming that summary regarding import of cotton from India has been sent to Economic Coordination Committee for the approval. Let’s see what has been decided.
Seed cotton (Phutti) equivalent to over 5.643 million or exactly 5,643,525 bales have reached ginning factories across the country till Mar 15, 2021, registering a 34.16 per cent shortfall compared to corresponding period of last year when arrivals were recorded 8.57 million bales, well above the existing figures.
According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released to media on Thursday, exactly 5,639,035 bales have undergone the ginning process i.e. converted into bales. Cotton arrivals in Punjab were recorded at over 3.5 million or 3,507,356 bales while Sindh generated just over 2.1 million or 2,136,169 bales. Just over 5.5 million or 5,517,611 bales have been sold out with major chunk of it, 5.44 million (5,447,411) bales, bought by textile mills and 70,200 by exporters. Exactly 125.914 bales were lying unsold at the ginneries. Bahawalnagar district of Punjab remained on top with cotton arrival figure of over a million or 1,000,381 bales followed by Sanghar district in Sindh (791,278) and Rahim Yar Khan (656,941 bales). Total 14 ginning factories were operational in the country, all of them in Punjab, and none in Sindh.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that 57 lac bales produced in the country during the current season. He also told that partial payment has started in Lower Sindh but no incentives for the farmers have been announced yet. Delay in announcement of subsidy will adversely affect cotton production. It should be announced immediately as sowing has started.
Federal minister for National Food Security and Research Syed Fakhar Imam persuaded a meeting which was also attended by ministers and secretaries of agriculture from all provincial government.
The official said that the meeting was informed that due to declining cotton production in Sindh; only about half were functioning out of total 341 cotton ginning factories. It was suggested by the Sindh provincial agriculture ministry that a sum of Rs 3 billion was estimated for the revival of cotton crop in Sindh in terms of research, genetic engineering amongst other services for the farmers.
He said that Punjab’s agricultural ministry’s representative pointed out the need for streamlining the availability of pesticide, availability of improved variety of seeds and the area-wise identification of varieties at hand.
The secretary ministry of agriculture Khyber Pakhtunkhwa said that DI Khan cultivates cotton and incentives for cultivation to cotton farmers were the need of the hour. He said ginning mills should be set up in province to increase cotton cultivation following the model of sugar mills to increase production of sugar cane.
Official said that Director General (DG) agriculture Balochistan said that 17 districts of Balochistan were producing cotton while four districts in Balochistan were producing organic cotton. The Balochistan government will sign memorandum of understanding (MoU) with various companies to support the production of non-GMO cotton seeds, he said.
Imam told the meeting that there were three major varieties of cotton seed available. As many as 23,000 tons of certified cotton seed was available with a germination percentage of 75, as compared to a 47 percentage germination rate last year. Punjab seed council has introduced 17 new varieties including a double-gene variety whereas Sindh has introduced three varieties, he said.
The federal minister said that cotton growers would soon be given special incentives by the federal and provincial governments in the form of cotton-specific subsidies. He said that Punjab Seed Council has introduced 17 new varieties, including a double-gene variety, whereas Sindh has introduced three new varieties.
Cotton growers will be given subsides on pesticides for whitefly and pink bollworm, as well as on cotton seed. It will be ensured that the subsidies reach the farmers and do not get lost in the middle,” he added.
In addition, he said, subsidy on tractors, loan markups and fertilizers would also be announced for the farmers’ community in general.
He advised against the mixing of cotton varieties “as it lowers the quality of cotton”, and also stressed on reducing the trash content in cotton that can lead to lower profitability.
He further advised district-wise monitoring of cotton growth and said that a total of 6 million bales of cotton were expected to be grown this year.
Moreover, at the behest of the International Monterey Fund (IMF), the powers of the State Bank of Pakistan (SBP) have been greatly increased. On the directions of IMF, the power tariff is being increased by five rupees and sixty-five paisa as a result of which burden of Rs 884 billion will bear by common man. It is a conspiracy to destroy the agriculture and industry of the country.
Kisan Ittehad rallied in Multan against non-availability of electricity in diesel and fertilizer. During the rally in Multan, the alliance announced a sit-in in Lahore on March 31. Kisan Ittehad has staged a protest march in Multan in the form of a tractor rally.
Demonstrators said that electricity, diesel and fertilizer are expensive across the country while the rates of agricultural commodities are low. They demanded that electricity bills for tube wells be waived while subsidies will be given for fertilizers and diesel.
Copyright Business Recorder, 2021
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