KARACHI: The prices of cotton remained stable while the increasing trend witnessed in the phutti supply. Rains are supposed to be beneficial at this time. The rate of cotton yarn is stable. There are different views regarding the cotton production. Pakistan Cotton Ginners is continuously working for safeguarding the interest of ginners. There is a threat of new attack of Locusts.
In the local cotton market during the last week, textile mills showed interest in buying while the supply of Phutti continues without any hurdle due to which the rate of cotton remained stable over all. Till now, the supply of Phutti is coming from the lower areas of Sindh while it has been also started in limited amount from some areas of Punjab.
In Sindh, a large number of ginning factories are functional while in Punjab some factories are running their operations from the mix Phutti of Punjab and Sindh. The Phutti in Sindh was affected due to the rains in some cotton producing areas a week ago. A new spell of rains in many cotton producing areas of Sindh may affect the quality and picking of the cotton. However, rains are beneficial for the crop at this stage, but if there will be more rains, water accumulated in the fields may damage the crop.
In Sindh the rate of cotton is in between Rs 8300 to 8400 per maund. The rate of Phutti is in between Rs 3600 to Rs 4000 per 40 Kg while the rate of Banola is in between Rs 1600 to Rs 1650.
The rate of cotton in Punjab is in between Rs 8550 to Rs 8650 per maund. The rate of Phutti is in between Rs 3600 to Rs 4300 per 40 kg. The rate of Banola is in between Rs 1650 to Rs 1750. The rate of Phutti in Balochistan is in between Rs 4100 to Rs 4150 per 40 kg.
The Spot Rate Committee of Karachi Cotton Association has decreased the rate of cotton by Rs 100 per maund and closed it at Rs 8400 per maund.
Punjab minister for agriculture Malik Noman Ahmad Langrial said cotton was cultivated on 46 lac acres of land and it is expected that 75 lac bales of cotton will be produced in Punjab. However, there are reports from several cotton growing areas of Punjab that White fly and Pinkball warm are affecting the crop there, for which the agriculture department officials were guiding the farmers regarding taking precautionary measures in order to save the crop from their attack.
According to the estimates of agriculture department regarding cotton crop production it is expected that one crore 10 lac bales will be produced in the country. As per estimates, 75 lac bales will be produced in Punjab, 35 lac bales in Sindh while one lac bales will be produced in Khyber Pakhtunkhwa. It is expected that around 11 million bales will be produced. However, according to the claims of private sector 87 lac bales will be produced.
As per reports cotton crop sowing in the country during current season 2020-21 decreased by 1.3 percent compared to last year.
Karachi Cotton Brokers Forum chairman Naseem Usman told that mixed trend was witnessed in international cotton market. Fluctuation was seen in the rate of New York Cotton Market. The rate of cotton remained stable in China. The rate of cotton in Brazil and Argentina remained relativity stable but the bearish trend remained continued in India. Indian ginners are in panic. Due to substantial rains in India it is expected that cotton production will be improved.
Moreover, on last Wednesday a delegation of Pakistan Cotton Ginners Association met with Sindh Governor Imran Ismail and briefed him regarding the problems faced by ginners especially the matter of availability of electricity was discussed because it was under federal government.
Other than that PCGA delegation on Thursday with the support of Bawalpur, Vehari and Rahim Yar Khan chambers of commerce talked with executive director of the State Bank of Pakistan and high officials of other commercial banks through Zoom and video conferencing and briefed them regarding their issues and requested them to solve it at earliest.
Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Sheikh has directed the Federal Board of Revenue to ensure Income Tax refunds of up to Rs 50 million are concluded in next couple of weeks while a clear road map and strategy may be adopted for the payment of remaining refunds.
While Federation of Pakistan Chambers of Commerce and Industry (PCCI) president Mian Anjum Nisar has requested the government that businesses and industry were badly affected by the Covid-19 so the government should not abolish the subsidy on power to save the industry from further loss.
According to the report released by Inter-market Securities (IMS), Pakistan's textile exports may only fall by 5-10 percent in 2021 financial year rather than 20 percent or more that was predicted earlier.
Earlier, according to the data released by Pakistan Bureau of Statistics Pakistan's clothing and textile sector posted a negative growth of over six percent to 12.526 billion dollars in the financial year 2019-20 as compared to 13.3 billion dollars in the corresponding period of 2018-19.
The rate of yarn in local market is stable.
Minister for National Food Security and Research Syed Fakhir Imam said Locust will enter in Pakistan and India from Somalia. While chairing the meeting at Locust control center he said that Locusts are expected to enter the country again from the Rajasthan area in India during the current monsoon season.
Copyright Business Recorder, 2020
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