KARACHI: The local cotton market remained bearish on Tuesday. Market sources said that bearish trend was also witnessed in the international market. Cotton analyst Naseem Usman told that decreasing trend was witnessed in the prices of cotton, Phutti, Khal and Banola in the local market. He also said that trading volume remained a little bit low. Due to the monsoon rains the quality and supply of the Phutti was also affected.
As per media reports in southern Punjab, including Multan, the cotton production may affect due to the attack of White fly on cotton crop.
Cotton Analyst Naseem Usman told that the condition of cotton crop is not satisfactory in Pakistan because of the non availability of the good quality seed as well as the germination level of the seed is as low as 40 percent. The Locust attack in some areas of Sindh and Punjab also damaged the crops. The weather conditions were not so favourable so it is early to predict any estimate regarding production of cotton in the country. However, according to the claims of the Punjab government it is expected that 75 lac bales will be produced. According to the claims of Punjab government cotton sowing was completed on 45 lac acres.
It is expected that 35 lac bales will be produced in Sindh while one lac bales will be produced in Balochistan and Khyber Pakhtunkwha. It is expected that around 11 million bales will be produced. However, according to the claims of the private sector it is expected that 87 lac will be produced.
He also told that Cotton Association of India has raised serious objection over the US Department of Agriculture assessment of India's cotton stock positions alleging a misleading portrayal of India's cotton market in the international market.
Textile exporters are annoyed and distressed in the wake of highest ever liquidity crunch being faced due to the imposition of 17 percent GST whose refunds are excessively delayed by the government without any justification which has caused hurdles in export production.
While central chairman Pakistan Hosiery Manufacturers and Exporters Association Chaudhry Salamat Ali also said that unnecessary delay in release of tax refunds is also causing hurdles in export production.
Meanwhile, Prime Minister Imran Khan visited the National Locust Control Center and gave in principle approval for the Phase II of the National Action Plan for Locust control in the country after a decision that the affected farmers would be compensated through this package.
Earlier, 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 3000 bales of Tando Adam were sold at Rs 8400 to Rs 8500, 1600 bales of Sanghar were sold Rs 8400 to Rs 8500, 1200 bales of Mirpur Khas were sold at Rs 8400 to Rs 8450, 1000 bales of Shahdadpur were sold at Rs 8400 to Rs 8475, 800 bales of Kotri were sold in between Rs 8450 to Rs 8475, 200 bales of Moro were sold at Rs 8400, 1800 bales of Shahpur Chakar were sold at Rs 8450 to Rs 8475, 300 bales of Gularchi were sold in between Rs 8450 to Rs 8475, 100 bales of Burewala were sold at Rs 8700, 900 bales of Chichawatni were sold in between Rs 8650 to Rs 8700, 200 bales of Khanewal were sold at Rs 8650 and 400 bales of Hyderabad were sold at Rs 8450.
Naseem Usman also said that rate of new cotton of Sindh is in between Rs 8300 to Rs 8350 per maund while in Punjab the rate of new cotton is in between Rs 8350 to Rs 8600 per maund. He told that Phutti of Sindh was sold in between Rs 3400 to Rs 4100 per 40 kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 4200 per 40 Kg. The rate of Banola in Sindh was in between Rs 1600 to Rs 1650 while the price of Banola in Punjab was in between Rs 1700 to Rs 1800.
The Spot Rate remained unchanged at Rs 8500 per maund. The polyester fibre was available at Rs 157 per kg.
Copyright Business Recorder, 2020
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