KARACHI: The rate of local cotton remained stable while unprecedented increase was witnessed in the rate of cotton in international cotton markets. The rate of Future Trading of New York Cotton reached at 136 American cents per pound which is at highest level in eleven years. Cotton growers demanded that government should fix the intervention price of cotton at Rs 7500 per maund. Government departments related to cotton are actively working. Karachi Cotton Association has shown reservation on delay in issuance of permit to the importers of raw cotton by the plant protection department.
Dullness prevails in the local cotton market during the last week because there was no cotton available in the market. Few ginners had cotton in very limited quantity which they were selling it on high rates. The stock of cotton of an international organisation is near ending. Very few deals were reported. Season of cotton ended almost two months before because of low cotton production in the country. Pakistan Cotton Ginners Association has finalised the yearly report in February through as per their past tradition, the report was finalised on May 31.
The rate of cotton in international markets was very high. In New York Cotton Market the rate of Future Trading reached at 136 American cents per pound which is highest in eleven years. It is hinted that it will increase further. Although, this year the production of cotton is nineteen lac bales more than the last year production but the rate of cotton in both local and international markets has already been doubled.
The rate of cotton in the local cotton market during the last season was in between Rs 10,000 to Rs 11,000 per maund while during the current season it was in between Rs 16,000 to Rs 17,000 per maund, which was at Rs 18,000 to Rs 20,000 per maund at the end of the season.
During this season all the stakeholders of cotton from Fashion to Field earned a lot of profit, especially the farmers got a good price of Phutti. The government had announced the intervention price of Phutti at Rs 5000 per 40 kg and if the price come down Trading Corporation of Pakistan will buy two lac bales from the farmers. Overall textile sector showed positive results as bullish trend prevailed in international cotton market and due to Covid-19 textile sector got export orders due to which the rate of cotton went increased. Overall, textile sector performed well and the mills gave orders for the import of textile machinery of worth Rs 500 billion.
This year the government departments are actively playing their role for increasing the production of cotton. Government had also increased the intervention price of cotton by Rs 700 per 40 kg and fixed it at Rs 5700 per 40 kg. There was panic among farmers on the increase of Rs 700. They were expecting more increase in the price as the rate of DAP and energy has increased sharply. The farmers demand that government should fix the rate of Phutti at Rs 7500 per 40 kg because in some areas of Sindh sowing has already started and agreements on the condition of delivery in between May 15 and June 15 at the rate of Rs 7400 to Rs 8400 already been signed.
The rate of cotton in Sindh and Punjab is in between Rs 18,000 to Rs 20,000 per maund while the rate of Banola, Khal Banola and oil are stable. The Spot Rate Committee of the Karachi Cotton Association has stabled the rate of cotton at Rs 20,000 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that a bullish trend prevails in international cotton markets, especially New York Cotton Market where rate of Future Trading for the month of May after increasing reached at 136 American cents per pound which is at highest level in 11 years. According to the USDA weekly export report for the year 2021-22 during the week more than three lac seven thousand bales were sold which is seventeen percent less as compared to last week. China was on number one after buying more than one lac thirty thousand bales; Turkey was on number two with more than seventy one thousand bales while Bangladesh was on number three with more than twenty six thousand bales. For the year 2022-23 more than sixty seven thousand bales were sold.
However, Punjab Minister for Agriculture Syed Husnain Jahania Gardezi has emphasised the use of modern technology and Integrated Pest Management for improving cotton crop management and field results.
Addressing a seminar organised by the Punjab University Centre of Excellence in Molecular Biology (CEMB), he further said that agriculture was the backbone of our country and nearly 60% of country’s export was based on cotton and cotton-related products.
Agricultural Secretary Punjab Asad Rahman Gilani, Dean Life Sciences Punjab University Dr Javed Iqbal Qazi, Dean Institute of Agricultural Sciences Dr Saleem Haider, Sindh Seed Council member Nadeem Shah, representatives of more than nine seed companies, growers and farmers from across Pakistan, senior professors from educational and research institutes, faculty members and researchers were present on this occasion.
Gardezi further said that seed traceability by fingerprinting was the key to control the quality of seed. He assured full support of the government for the distribution of CEMB cotton varieties to the farmers across Pakistan. CEMB Director Prof Dr Ahmad Ali Shahid briefed the audience about CEMB’s struggle for developing and commercialising cotton varieties: CKC1, two, and three. He paid his gratitude to all the funding agencies and hundreds of researchers who have been working on cotton variety development at CEMB since the 90s.
Later, Prof Dr Abdul Qayyum Rao, Prof Dr Bushra Rashid, Dr Allah Bakhsh, Prof Dr Tayyab Husnain, Prof Dr Idrees Ahmed Nasir and others shared the CEMB cotton varieties’ success story with the audience and briefed them about constraints in cotton development and the NBC guidelines that should be followed for cultivation of transgenic varieties. Nadeem Shah suggested that experienced researchers and breeders should be included in think tank for policy-making.
Khawaja M Zubair, Chairman Karachi Cotton Association (KCA) has expressed his deep concern over the undesirable delay/ refusal into issuance of necessary permits to the importers of raw cotton by the Department of Plant Protection, Government of Pakistan on the misinterpretation of law, despite fulfilling all the requirements including Phyto-Sanitary Certificate of the country of origin and fumigation.
The permits issued by the Department of Plant Protection are required for clearance of consignments of imported raw cotton from the port. Due to delay/ refusal into issue necessary permits by the Department of Plant Protection, not only the heavy demurrage and detention on the consignments of imported raw cotton are involved on daily basis but also the local export oriented textile industry are facing problems and difficulties to meet their requirement of raw material to fulfil their contractual obligations of exports of value added textile products with their foreign buyers in timely manner.
Khawaja M Zubair said that due to acute shortage of raw cotton in the country owing to failure of local cotton crop since last 04-05 years, the local textile industry is compelled to import raw cotton to meet it’s rising requirement of raw material to keep their textile mills in operation and timely fulfil their contractual obligations of exports of value added textile products with their foreign buyers. In such a situation, the Department of Plant Protection is going against the policy of the Government to boost exports of the country to earn much needed foreign exchange for the country by delaying/ refusing to issue necessary permits to the importers of raw cotton, resulting in considerable delay in clearance of consignments of imported raw cotton from the port.
He also said that due to misinterpretation of law by the Department of Plant Protection, foreign shippers of raw cotton including shipper from Singapore, who is the second largest shipper of raw cotton in the world and having 30% share of the Government of Singapore, is reluctant to ship raw cotton to Pakistan.
Khawaja M Zubair urged the Government of Pakistan/ Ministry of National Food Security and Research to look into the matter immediately, in the best interest of the cotton economy and play its due role in addressing this serious issue concerning to the local exports oriented textile industry; otherwise, our regional competitors would take advantage of this situation by capturing our foreign buyers of valued added products of textiles, resulting in not only the exports of Pakistan would be badly affected but also incur heavy losses of foreign exchange for the country.
Vice President Pakistan Central Cotton Committee (PCCC) Dr Muhammad Ali Talpur said on Monday that modern cotton seed technology would be introduced soon in the country to promote cotton production and empower farmers economically.
“In the next two to three years, all issues pertaining to cotton seeds will be resolved and the Ministry of National food Security will provide resources to the Pakistan Central Cotton Committee to ensure promotion of modern seed technology, Talpur said while presiding over a meeting of agricultural scientists at CCRI Multan. Ministry of National Food Security would ensure availability of modern genetic technology of cotton and use it in locally grown cotton varieties, he said.
Agreements will be signed with international seed companies for the supply of new gene seed technology.
Apart from this, Dr. Muhammad Ali Talpur also reviewed various ongoing projects of PCCC in the field of cotton research and gave the task to agricultural scientists to work on some other projects.
He said that production and supply of seeds produced in research institutes would be preserved on scientific basis instead of traditional methods. Computerized record of the seed will be compiled. Written agreements will be inked with the seed companies for multiplication of seed. PCCC will offer seed to farmers by 2023.
Dr. Ali Talpur said that production of high quality seeds would not only reduce production cost but also significant increase cotton production.
The increase in per acre production would bring prosperity in the life of the farmer and stabilize the national economy.
Speaking on the occasion, Director Central Cotton Research Institute, Multan Chaudhary Zahid said that the institute had been working on genetic seed technology for many years.
He further said that CCRI would conduct new experiments in Cholistan and Chakwal for multiplication of cotton seeds. The meeting was attended by heads of various departments.
Copyright Business Recorder, 2022
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