KARACHI: The Spot Rate Committee of Karachi Cotton Association on Friday increased the spot rate by Rs 100 per maund and closed it at Rs 8500 per maund.
Market sources told that due to the monsoon rains the quality and supply of the Phutti was effected as a result of which the demand and quality of cotton increased.
Cotton Analyst Naseem Usman told that demand of Phutti is increasing day by day as large number of ginning factories becomes operational day by day. Ginners were demanding high prices of cotton because they were getting Phutti on high rates. The mills were involved in cautious buying as per their needs.
Naseem told that Sukkur Chamber of Commerce had written a letter to the Governor State Bank of Pakistan requesting him to provide relief to the ginning sector.
According to the letter they requested that the value of stock (DP Rates) should be taken as it was before COVID 19. The renewal of the banks financial facility for the ginners who have partially adjusted their limits but stuck in stocks due to this COVID 19 pandemic and have good credit history may be allowed partially to the ratio of adjustment. The renewal of the bank limits of cotton ginners for the next season be done keeping in view of COVID 19 pandemic and facilitate ginners by relaxing the banking rules to enable them to operate their units.
Moreover, Trading Corporation of Pakistan should buy the remaining stock lying with the ginners.
According to letter written by Convener Federation of Pakistan Chamber of Commerce and Industries Mian Zahid Hussain to Governor State Bank of Pakistan in which he requested that hardships of Pakistan Cotton Ginners Association should be addressed on priority basis.
Naseem also told that the Federal Board of Revenue (FBR) admitted before a parliamentary panel that tax refund claims of over Rs 532 billion had been blocked since 2014 to show higher growth in revenue collection.
Meanwhile Punjab Agriculture Minster Malik Noman Ahmad Langrial said that acquisition of modern technology is need of the hour to increase cotton production. Soon after the completion of rules and regulations for approval of new varieties of cotton, the farmers get increased production of cotton per acre with 50 percent reduction in the production cost.
As per media reports officials warned that next few weeks could be crucial in the fight against desert locust infestation with major swarms expected to be reaching here later this month from the Horn of Africa.
Naseem told that 1600 bales of Tando Adam were sold at Rs 8400 to Rs 8450, 800 bales of Sanghar were sold Rs 8375 to Rs 8400, 200 bales of Mirpurkhas were sold at Rs 8350, 200 bales of Nua Abad were sold at Rs 8375, 600 bales of Khanewal were sold in between Rs 8600 to Rs 8700, 400 bales of Burewala were sold at Rs 8600 to Rs 8650 and 200 bales of Chichawatni were sold at Rs 8650 per maund.
Naseem Usman also said that rate of new cotton of Sindh is in between Rs 8400 to Rs 8450 per maund while in Punjab the rate of new cotton is in between Rs 8600 to Rs 8700 per maund.
He told that Phutti of Sindh was sold in between Rs 3400 to Rs 4200 per 40 kg. The rate of Phutti in Punjab is in between Rs 3400 to Rs 4300 per 40 kg.
The rate of Banola in Sindh was in between Rs 1900 to Rs 1950 while the price of Banola in Punjab was in between Rs 1950 to Rs 2000.
The Spot Rate Committee of Karachi Cotton Association has increased the spot rate by Rs 100 per maund and closed it at Rs 8500 per maund. The polyester fiber was available at Rs 157 per kg.
Copyright Business Recorder, 2020
Comments
Comments are closed.