The sustained violence and volatile conditions in the city had firm grip over trading, cotton not being excluded, throughout the week, buyers lifting one or two bales when unavoidable.
The sellers bowed to international declining trend by slashing spot rate by Rs 25 to Rs 3050 without Rs 50 upcountry expenses.
WORLD SCENARIO: The cotton futures got repeated heating to surrender most humbly on switch-linked sales with more roll-over activity expected as players watch first notice day next week.
On the first trading day in New York prices settled lower as most of the running in cotton was done by investors switching their positions out of July and into the back months.
Second day's trading was even worse. The heavy selling on the July to October spread caused the spot month to sink the 3.00 cent limit. Tuesday's painful crash seems to have its roots in tremendous number of traders being totally crucified in July/December switch.
The third day's session had nothing to console the sellers or buyers. The fall in both the futures was simply sharpest.
On Thursday losing streak came to halt on buying by small speculators as funds and options related selling which pummelled the markets down to a one-year low. Traders said the market may have also received a boost from steady US cotton sales.
The last day of the sessions settled mixed in activity dominated by switch trade as players rolled options out of July with as eye on first notice day.
The industry sources said the market took note of news that the United States would appeal a world trade organisation ruling that US cotton subsidised are illegal.
LOCAL TRADING: Retreat was well-marked in Pakistan cotton markets but the usual the following in the wake of cotton futures in New York was certainly not even close.
The sellers towards the middle of the week observing buyers were not back on the market reduced spot rate by Rs 25 to Rs 3050. Two deals were struck in new crop on different dates for delivery around Aug 15/20. Sporadic deals to meet the urgent needs were also seen. The market thought did not go ? on budget provision that 15pc sales tax on ginned cotton is being dropped.
On Tuesday no report of deals struck was passed on. But there always was chance that a few deals could land with the operators late in the night, spot rate was same which cotton futures maintained slide.
The market rejoiced the budget provisions that 15pc ST has already been withdrawn and the same was not to be withdrawn from July 1, 2004, when provisions will take effect.
The third day trading was nil. Buyers were quite satisfied as they had been heard at long last and sales tax was withdrawn. Besides, spinners had already imported record quantity of cotton roughly 12 to 15 lakh bales. Brokers said spinners were happy with circumstances siding with them. New crop phutti had also been finding ways into ginneries through in trickles.
The next week resuming sales on Monday may have some movement. Spot was same as Rs 3050. The spinners as well as ginners had witnessed some favourable development and hoping trading will start anytime soon.
The DMR reported only one deal, that is 24 hours stab deal. While city was still in turmoil, market reported a few deals which must have consoled the ginners and spinners former because some stock had been sold and the latter because the price had been well under control.
Saturday's: The Saturday trading appeared respectable around 4000 bales, spot rate remained unchanged at Rs 3050.
KWC OUTBURST: The Kissan Welfare Council (KWC) has blasted agriculture package announced by the President calling it "not enough".
The statement has an air of that deprivation which has glued itself with this community for the last over 10 decades.
He appeared much upset at the mark-up rate, which council said was like a peanut. He demanded that if poor and their interests are so favourite, decisions should come in respectable quantity.
He cited example of neighbouring India where authorities are not oblivious of the foreign markets needs. Growers in India naturally enjoy facilities that make products competitive. Even China flood markets with products because they command competitive edge.
Pak agri-products lack those advantages and face the peril. About duty exemptions on the agri-implements he said the facility is exploited by what he said "Nabi" who he alleged are involved in fleecing poor farmers.
The chairman expressed disappointment at the attitude of manufacturers of tractors in the country.
He regretted locally manufactured tractors are not only costlier but miserably fail world quality.
Sources commenting on the issue reminded that sustained deprivation has resulted in frustration, which found way in expression of out of the way criticism. Not long before they pointed out growers burnt cotton because the return they were getting was much below their investment.
That was the time that they had publicly announced to switch over to some gainful crops though persuasion by authorities changed their mind.
UZBEKISTAN OFFER: If any offer is more risk involved jump into joint venture or any such thing needs careful guage indeed! The Pakistani textile magnates throwing cold shoulder to offer cannot be questioned outright.
The businessmen or industrialists are justified for expecting proper return. But, as the circles close to textile trade pointed out, that Pakistanis are used to allegedly collect a return of eight times more than is the practice world over.
Although, not all manufacturers are lustful for more gains then are due, but some fortune people are, where governments are more bothered for their "Chairs" to hold firm, get ample opportunity to grind their own axe on whimsical leaning.
In Pakistan growers, with not accumulated fortune and helplessly watching water to trickle at the tail end," experts said.
Ordinary ginned cotton is paid 5 to 10 cents less in international markets and it dirt free cotton is brought to market is not given a penny higher then the ordinarily ginned cotton.
Therefore Uzbekistan offer despite officials assurance that every desired thing is available signal from Pakistan is not every close to "yes".
The facilities available as enumerated by Uzbek first deputy minister of Light Industries Kim Tay Bong are low labour, utility costs, raw cotton at 200 dollars per ton, income tax exemption from what has said mandatory sales of 50 percent be arranged from Korean and Japanese exim banks besides local Uzbek Banks.
The Korean, Turkish, American and Egyptian have set up textile units. Experts pose question whether these countries have set up business against a guaranteed loss?
TAIL PIECE: If possible growers' criticism of budget speech which claims of alleviating suffering have been highlighted but fails as the receivers claim should be looked into.
Elsewhere, in this write up President Musharraf's agri-package has also been touched upon.
According to victims the 30 horse-powers tractors are not workable under Pakistan conditions and beyond 60 HP are not affordable.
However, there are others in the field who felt the idea to do good to farmers has made a beginning after years of complete ignorance.
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