Cotton prices rule steady

Cotton prices continued to maintain their steady position throughout this week as leftover stocks from the current season (2007-2008) have dropped to negligible numbers. Though the proper figures of unsold stocks from this season still lying with the ginners are not easily available.
They could be only 50,000 bales or thereabouts. Sales of ready cotton, stocks are being conducted on a steady basis with prices continuing to remain at nearly the highest range attained in this season. Fears of possible shortfall in the forthcoming cotton crop are also circulating in the market quite ominously for sundry reasons.
Lint prices for both Sindh and Punjab for the current crop (2007-08) are ranging from Rs 3700 to Rs 4000 per maund (37.32 kgs) according to the quality.New crop (2008-09) cotton from Sultanabad in Sindh was sold at Rs 3800 per maund for August 2008 delivery a couple of days ago.
There are several reasons why it is feared that the next cotton crop (2008-09) in Pakistan could be below the earlier expectations. According to trade talk, late arrival of irrigation water, loss of acreage to competing crops, danger of mealy bug attack are some of the reasons for lower expectations of cotton output during the forthcoming season.
The federal government has fixed a production target for cotton for the next season (2008-09) at 14.1 million bales (170 kgs). However, now fears are being expressed in some cotton circles that the output could go down anywhere from 20 to 30 percent.
It is gathered from the market that these cotton estimates hardly have scientific basis but are just trade apprehensions. Their extent and quantum remain speculative even though a decrease in next year's cotton crop output remains a possibility.
With these perceptions and parameters available presently. No downward trend in cotton prices is seen at this juncture. Yarn and textile prices have risen notably, even though most of the textile industry is still trying to convince the government that they are working with a big handicap compared to their competitors in global markets.
Textile mills are mostly dissatisfied with the federal budget as they claim that not only many of their urgently needed proposals have been ignored. Even their earlier entitlement to research and development (R&D) payout by the government has been withdrawn. Textile industry and its sundry sub-sectors have been very vocal in asking for more assistance in order to address its predicaments.
Textile industry is now targeting the forthcoming trade policy due for announcement by the government within a fortnight or so where it hopes and expects that remedial measures will be taken including cognisance of the rising cost of doing business.
In a report emanating from Multan a couple of days ago, the chairman of the Pakistan Cotton Ginners Association (PCGA) Chaudhry Mohammad Akram castigated both the federal and Punjab governments for providing what he termed as budgets which are against' the interests of the entire cotton economy including growers, cotton industry and agriculture. Akram demanded removal of sales tax on the cotton industry. He also criticised the government for failing to control the infestation of mealy bug and other viruses and also for the proliferation of unauthorised spread of Bt cotton in the country for lack of seed verification. Akram is very doubtful that government target of a production of 14.1 million bales will be achieved during the forthcoming season (2008-09) due to the failings of the government aforesaid on its part, officials in Islamabad said a couple of days ago that there would be no shortage of pesticides which are used against the mealy bug and the cotton curl leaf virus (CLVC).
Now therefore all hopes of the ginning and textile industry are hanging on the forthcoming trade policy which should remedy their grievances. On its part, the minister of textile told the national assembly on last Saturday (June 14, 2008) that the forthcoming trade policy of the government will announce a comprehensive package for textile exports which has been prepared jointly by both the ministries of commerce and textile. The comprehensive package envisages initiatives to increase textile exports, adopt measures to reduce contamination in cotton, bring in foreign textile technologists, encourage the activity and assistance to engage local as well as foreign fashion designers, bring in state-of the art textile machinery for modernisation and also encourage opening of selling outlets abroad by leading textile manufacturers from Pakistan. Benchmark studies to train more professional and technical staff in the textile industry will also be supported. Foreign staff would also be employed to fill the technical resource gap now facing the Pakistan textile industry.
Death occurred last week of Syed Wajid Ali Shah who was a very revered and respected leader of the cotton and textile community of Pakistan. Besides his numerous and selfless contributions to the development of sports, human welfare, education, business and industry.
The late Wajid Ali Shah was chairman of both Karachi Cotton Association (KCA) and the All Pakistan Textile Mills Association (APTMA) for many years. In his multifarious capacities, he was also the former president of the Pakistan Olympic Association, the founder chairman of the Idara-e-Saqafat-i-Islamia, Lahore, the Red Cross Society and other philanthropic educational and social bodies.
By temperament Wajid Ali Shah was a humane and God-fearing gentleman. May Allah rest his soul in peace and give courage and fortitude to his family to bear this big loss. Wajid Ali Shah was chairman of the Packages Limited group of industries, one of the leading conglomerate concerns of Pakistan.