LAHORE: The local cotton market remained on Monday remained steady and the trading volume remained low.
Cotton Analyst Naseem Usman told that the rate of cotton in Sind is in between Rs 18,500 to Rs 19,000 per maund. The rate of cotton in Punjab is in between Rs 19000 to Rs 19500 per maund.
800 bales of Tando Adam were sold in between Rs 19000 to Rs 19200 per maund, 200 bales of Mir Pur Khas were sold at Rs 19150 per maund and 400 bales of Sanghar were sold at Rs 19200 per maund.
Pakistan’s cotton imports are on the rise again. After importing just 3.1 million bales of 170 kg during first nine months, over 1.1 million bales made their way through ports of entry during April and May 2022. At this rate, the fiscal year may now close with imports of 4.5 million bales, and an import bill of over $1.9 billion, highest ever in country’s history.
Although the initial forecast for now closing trade year (2021-22) placed imports at 5 million bales, demand for foreign cotton slowed down significantly during the Jul – Dec ‘22. This was driven in part by upbeat trend of local cotton arrivals, which rose from 7 million bales during FY21 to 8.3 million bales by season end. Meanwhile, a surge in international prices by 54 percent on average also slowed down demand for upland and other imported varieties.
Cotton markets crashed internationally, while the imposition of new heavy taxes on other industries, including the textile industry in Pakistan, led to a sharp drop in cotton and cotton prices in Pakistan over the past week. Ehsanul Haq, Chairman Cotton Ginners Forum, said that the New York Cotton Exchange has been witnessing a sharp rise over the last one year as a result of which the prices of cotton in Pakistan during the last few years reached Rs 23,000 per maund which is highest in the history of the country while the price of Phutti reached at the highest level of Rs 10,300 per 40 Kg. The farmers are happy because they are getting good price of the crop.
But due to Russia and Ukarine conflict and due to the increase in the mark up ratio in America and other countries the crisis arises in the cotton markets of United States, India and China. As a result of the crisis in prices of cotton worldwide Pakistani market was also effected and the prices of cotton after witnessing a decrease of Rs 2500 per maund reached in between Rs 18500 to Rs 19000 per maund.
He said that earlier the energy crisis and unexpected increase in markup rates and now the imposition of heavy taxes on the textile industry in the name of “super tax” had affected the entire cotton sector including the textile industry.
The Spot Rate remained unchanged at Rs 18800 per maund. The Polyester Fiber was available at Rs 325 per kg.
Copyright Business Recorder, 2022
Comments
Comments are closed.