The fortnightly PCGA report seeming is to set the trading pattern and prices on the higher side as a short fall of 18.36 percent was evident. The spot rate however, was struck up initially at Rs 3000 but was slashed on Wednesday by Rs 25 to Rs 2975.
WORLD SCENARIO:
The futures on the NYCE depicted erratic trend in the absence of fundamentals without powder to offer direction, though some players harbouring hopes that the March currently at 65.85 cents might be pulling muscle to climb back to the region of 69 to 70 cents a pound. The apprehension that cotton sowing during 2008/09 may be down to 10.847 million acres or to 9.185 million acres.
The rates opened on Monday March at 65.72 cents a pound. On Tuesday futures rose to consolidate near 5 month top and steady tone was likely to lead yet more gains in the coming days. However there were others who were hot disputing another setback to bring the softer tone to the fore.
On Wednesday the ICE Futures open-outcry March cotton contract closed up 0.55 cent at 66.27 cents per lb, trading from 66.05 to 66.45 cents, its highest level since November 16. May added 0.44 to finish at 67.62 cents. The ICE March electronic cotton contract rose 0.58 cent to 66.30 cents by 3:50 pm EST (2050 GMT).
LOCAL TRADING:
Cotton needs and production size hazy the buying slowed but sustained dipping at times and changing hands with pace the next day. The cotton import from India has been allowed and until they reported delivery began only slightly pace of buying will be affected and about prices speaking too much will be fantasy.
Phutti in Sindh was selling between Rs 1350 and Rs 1400 while in Punjab it was selling at Rs 1350 and Rs 1450. In ready buying was continuing between prices range of Rs 2975 and Rs 3175 while spot rates had opened unchanged at Rs 3000. Cotton changed hands around 6000 bales.
On Tuesday the fortnightly PCGA report had impacted sale of Phutti prices, which jumped to Rs 1400 and 1450 in Sindh while in Punjab Phutti sold at Rs 1400 and 1500 per 40 Kg. The PCGA report had given current short fall of 18.36 percent than last year. In ready the most sold out cotton was around Rs 3100/3150 with the exception of one or two sold between Rs 3190 and Rs 3200 supporting ginners perception.
The PCGA report and hectic cotton buying when more or less 14000 bales were lifted, but buyers apprehended the rate was likely to swell in coming days. Indian cotton arrival is in pipeline. Spot rate stayed put at Rs 3000.
On Wednesday trading shrank to a minimum in this week around two thousand bales at prices range of Rs 3100 or like amount. The spot rate was slashed by Rs 25 to Rs 2975, a tactical move. This action of the ginners was strange because only hours before had reported shortfall compared with 2006 this time. Those who lifted a few bales had transportation facility of their own.
HAS ANYBODY RAGRETS?
What is the criteria that someone naturally well versed fixes target, be it any crop or cotton fixing a target and its failure seems nobody's challenge to achieve the fixed quantity. Actually the real shortfall, which in this country unfortunately is concern of almost of the growers, who lose perhaps even his money spent besides his efforts. This sort if indifference is general phenomena and hence working of any institution or department speaks of national apathy.
Our experts and technologists while working in foreign countries deliver but when they are assigned important duty the end result is that even today Pakistan needs foreign export. Some four five years ago the same land, same grower and input had produced 15 million bales. God was too kind then.
But many will remember cotton flooded and no buyers were coming forward to but. The growers burnt cotton to lighten their burden. Such pestering burden the small growers bear all alone. Some one impartial should be assigned to run such committee or organisation who determined the size of the crop.
In present case cotton is required by mills and right from that day whatever acreage is considered worth giving that yield the crop is sown. Growers or assessment body should be alert about weather condition, heat and heavy rains, pest and virus attacks that body should help growers to over come the scourge. Growers are, weather small or poor to battle all odds while some men direct them (growers) to do the rest.
How all the growers know the correct application of pesticide is supposed by hundred and thousand agri workers?. If god is king (as is quoted some years back) growers produce cotton for hungry mills, if weather brings floods and pest and viruses and their wakes damages to standing crops only one and one is supposed to come under deadly pressure. Today mealy bug and CLCV and floods that damaged crop to the extent that twice or thrice target was altered but all doubt even the lowest wont go down further! So let ethics come in between helplessness, weather and efforts to tackle the worst until triumph!
TRADE REMEDY LAWS:
The countries may use Trade Remedy Laws to provide disguised protection to their local industry and avoiding their international commitment of moving towards free trade. A one-day conference on trade remedial laws under the WTO system "is bound to go a long way in making the system understood particularly by the exporters". Earlier in bits and in good language probably those who understood WTO system had tried to disseminate for injecting proficiency.
As a matter of fact when Pak participants were back from Morocco conference with the draft, had warned all concerned to real and understand fully to derive benefits. Even this conference has referred WTO as most misunderstood and complex organisation and these agreements are couched in technical legal language. Whether even the latest caution will awaken people or depend on more of practices that have been holding back WTO from final deal.
It is quite clear some developed countries have understood remedy laws and have been fighting in the reconciliation body to refuse at subsidy to harm their growers and every meeting in Geneva, WTO home, or any where on earth demands more and yet more from poor countries at in tariff rate. But it seems elsewhere those who should have welt versed not only the remedy laws but what actually opportunity had to shared with trade partners.
In such countries exporters should have gone through the draft before wise people started them to know as they know their 'lunch time' or their children's number. After already developed countries, those coming fast often contest or counter charges in WTO body, the foremost is China, which has highest number of months to feed. In some countries government and private sector consider each other rivals. The exporters look on sources including government to keep information of every development in business, trade and commerce, while governments come to capitals as a guest, and go short while away, unceremoniously.
God bless what irked people to organise a conference on WTO to remind nations they are allowed to derogate form their WTO obligations for a temporary period of time, to prepare thus local producers for competition. The response was positive and quick. For the time being only headline in next day's paper, "WTO to be approached for time extension for subscription.
MANY MOORE NEEDED:
The headline breaking of PU textile processing building," the other day sounded like somebody calling from far behind, Hey! good days for Pakistan, Pak exports are around. The occasion was on Friday, December 14, 2007, and the report appeared in a single column and somewhere on inside page, gives qualified glee as it has years of seemingly wishful feelings in it.
With so much potential and raw material textile sector is languishing under the heavy burden of high cost of doing business. The Vice Chancellor of Punjab University seized the occasion to perhaps reluctantly tell the exporters that textile sector has all requisite needs what actually is need that exporters felt inclined to produce value added products.
However VC's advice with love has not come the first time. The experts, of course world renowned, on costly and enrich textile producers knowledge had done so umpteen time but the response here was of deep indifference. The practice to produce low count cotton yarn continued without hitch or hindrance. Yes, hindrance was actively hurled by those whose infirm shrieks failed to reach Islamabad for bid to stop exports of yarn to competitors.
The experts in conference and outside would tell textile sector exporting only yarn meant four to five cents but any product with value-addition earns 5/10 dollars. The VC has advised with conviction that what is required is use of new technology to get self-reliance. The problem however is that where the investment was to come from? The government has always obliged to loudest callers but when revenue collected is far short of targets it halts only half way. He is optimistic about god gifted cotton, which consumers dub it a low quality, giving foreign importers cheeks to call for discount leaving Pakistan poorer by one billion dollar annually. He hopes this institution will produce textile professionals making upto six decades deficiency in the lucrative sector.
TAIL PIECE:
The intelligence and knowledge do not fall short in the country that soon after independence till today hiring foreign consultants or like things found necessary. Even in 50s they were considered a must. But it has not been heard or are mentioned today those high-graded foreigners left their indelible mark in the field they were hired for. Utmost they are talked about is that they came from reputed companies where they had been working as technicians.
Once again double column head line datelined Islamabad said that the federal Bureau of Revenue has decided to appoint consultants and tax consultants and tax experts to ensure speedy implementation of reform programme including evaluation of golden handshake scheme, customs valuation system, bonded carriers processes and passenger facilitation at airports.
If is often noted that 90 percent of tax payers either those who do not pay at all or pay whimsically. What foreign experts can do? With hats off to them, their expertise and experience is not put at stake. What is required for implementation is ethics. In fact this small words has a lot of scope in it. That can be tackled both ways - the result has been that foreign experts have done wonders as they have herds of honest people working.
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