Textile mills increased the buying of cotton. The rate of cotton remained stable. The trading volume also increased. The departments started taking practical steps towards increasing the production of cotton.
The needy textile and spinning mills speed up the buying of cotton because the availability of good quality cotton is decreasing day by day. Despite increase in the trading volume the rates were not increased but remained stable.
The prices of cotton in both Sindh and Punjab remained Rs 7000 to Rs 8800 per maund while the price of Seed cotton (Kapas/Phutti) is from Rs 2800 to Rs.3500 per 40Kgs in both Sindh and Punjab. The cotton in Balochistan is available at the rate of Rs 7800 to 8000 per maund while the seed cotton is available in very small quantity.
The Karachi Cotton Association (KAC) spot rate committee stabled the spot rate price at Rs 8600 per maund. Karachi Cotton Brokers Forum said that demand of cotton yarn and textile products has started increasing as a result of which the burden of textile spinners has also started decreasing. It is hoped that trading volume will be increased in coming days, although the stock of one million bales has left with the ginners. The cutting of wheat has delayed by 15 days due to recent rains as a result of which sowing of cotton will start after 15 days. It is expected that government will soon announce more incentives for textile sector in order to increase the export of textile products.
Meanwhile, few days back, National Assembly passed the Second Amendment Finance Supplementary Bill 2019 but the farmers' community is not happy with the passage of the bill because the government has not announced any package for farmers. According to a press statement, farmers are planning to stage a protest against this bill.
Sindh Abad Gar Ittehad in its statement against the Finance Bill said that during the election campaign PTI government had promised that after coming to power it would give incentives to agriculture sector and impose 'agriculture emergency'. Following in the footsteps of the previous government, the present government too is not willing to honor its pledge.
Chairman Sindh Abad Gar Ittehad Nawaz Wazir Talpur has also said that Federal Minister for National Food Security and Research Sahibzada Mahboob Sultan said that government will fix the Indicative Price of cotton seed at Rs 3500 per 40 kg but no announcement has been made in this regard. He demanded that government should fix Indicative Price of cotton in order to encourage farmers. He further said due to less cotton crop foreign exchange of billion of rupees is being spent on import of this commodity. He suggested that government should take practical steps to increase the agriculture output.
Moreover, the government has constituted a 16-member taskforce consisted of textile tycoons that will help government make a five-year textile policy (2019- 2024). Chairman Pakistan Cotton Ginners Association Mian Mahmood Ahmed has said that an important meeting was held on Thursday in Islamabad under the chair of Dr Hamayun in which important suggestions were given on the production of cotton. It was suggested that to increase the production of cotton it is necessary that cultivation land of cotton should be increased. The availability of certified seeds should be ensured for the production of Long Staple Cotton. It was also unanimously decided in the meeting that steps should be taken on a war footing to increase the production of cotton.
During the week, a mixed trend was seen in the international market. Fluctuations were seen in New York Cotton Market while the rate of cotton was stabled in Chinese market where as the rate of cotton shows upward trend in Indian cotton market.
Indian Cotton Association organized a conference on 6th and 7th March in Mumbai which was attended by cotton experts of international markets, traders and importers. 44 cotton experts from Pakistan were unable to attend the conference due to the ongoing tension between India and Pakistan.
President Indian Cotton Association Atul S. Ganatra has reportedly said during the meeting that India has signed an agreement of import of 800, 0000 bales of cotton from China while Pakistan has signed an agreements to import 650,000 bales of cotton during 1-10-2018 to 28-2-2019. President Bangladesh Cotton Association Mehdi Ali told the meeting that due to a reduction in the rate of cotton yarn in Bangladesh by 10 % the textile spinners have imported small amounts of cotton from India.
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