LAHORE: The Spot Rate remained unchanged. The market remained steady and the trading volume remained low.
Cotton analyst Naseem Usman while talking to Business Recorder said that according to the fortnightly report issued by Pakistan Cotton Ginners Association on Monday 7.35 million bales arrived as compared to the last years production of 5.37 million bales during this period.
He also told that cotton will not be available in the month of January. A new crop of cotton will arrive in June. He also said that prices of cotton and cotton-related products like yarn and Banola increased by 60 % during 2021.
He also told that the price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 6000 to Rs 8000.
Cotton of Sindh was traded from Rs 15000 to Rs 19000 per maund, Punjab’s cotton was traded from Rs 16000 to Rs 18500 per maund.
Finance Ministry’s harsh conditions on new fiscal incentives have reportedly compelled Commerce Ministry to withdraw its Textile and Apparel Policy 2020-25 despite the fact the ECC has already approved it and the latter’s decision was ratified by the Cabinet, sources close to Secretary Commerce told Business Recorder.
According to the Finance Ministry, the government is consistently supporting the export sector. During last three years, an estimated amount of Rs 115.5 billion under DLTL schemes to textile exporters and over Rs 100 billion as power and gas subsidy were disbursed to zero-rated sectors. Further concessions included taxes and duty-free import of raw material and machinery, and market determined exchange rate and subsidized financing by the State Bank of Pakistan (SBP) were provided.
However, exports of five zero-rated sectors registered negative growth in 2019-20 vis-à-vis 2018-19 and annual cumulative growth rate remained 6 per cent in the last three years.
Finance Division argues that it is imperative for the Commerce Ministry to take a holistic picture of the unprecedented support and outcome thereof for informed decision making by the ECC/Cabinet.
Moreover, exporting industries remained deprived of gas or faced low pressure, which resulted in delayed orders or failure to meet export orders, a top official of the Value-Added Textile Forum said in a letter written to the prime minister.
Foreign buyers have become doubtful that their orders would be delayed and have approached exporters in Pakistan, enquiring about their deliveries in the wake of the gas crisis, the letter reads.
Muhammad Jawed Bilwani, chief coordinator at Value Added Textile Forum and also chairman of Pakistan Apparel Forum, wrote the letter to PM Imran Khan to take notice on ‘urgent basis,’ saying that gas shortage since last 2 months had put the industries into a delicate situation.
“To avoid delays, foreign buyers are demanding their export shipment by air which is 800 percent expensive than shipment by sea,” he said, adding, “the buyers have also communicated that if exporters are not able to achieve the delivery date, they will have to shift export our orders from Pakistan and your factory, back to India, and Sri Lanka.”
The Spot Rate remained unchanged at Rs 18000 per maund. Polyester Fiber was available at Rs 252 per kg.
Copyright Business Recorder, 2021
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