KARACHI: Cotton prices continue to rise due to reports of significant decline in the crop. The rate of cotton reached at Rs 9200 per maund which is at the highest level of the season. The import agreements for the import of 15 lac bales of cotton were signed. It is expected that 45 lac bales of cotton will be imported.
In the local cotton market during the last week as a result of buying of good quality cotton by textile and spinning mills and due to the increase in the arrival of Phutti the rate of cotton increased by Rs 200 per maund.
According to the estimates of Pakistan Cotton Ginners Association in its report till September 15; 8 lac bales (44 %) less will be produced as compared to last year due to which bullish trend was witnessed in the market. The rate of cotton reached at Rs 9200 per maund which is at highest level in the season. The rains caused significant damage to the cotton crop, especially in Sindh province due to which quality and quantity both were affected. Although the quality of cotton was also affected in Punjab and Sindh due to which the increasing trend in the prices of Phutti and cotton continued.
According to the textile circles the quality of cotton is not good however mills were taking interest in buying according to their needs. As per received information big textile groups are singing import agreements of cotton and up till now agreements for the import of 15 lac bales are signed up till now. However, imports continue. According to the sources this year cotton has to be imported in large quantity.
The rate of cotton in Sindh as per quality is in between Rs 8250 to Rs 8900 per maund. The rate of Phutti is in between Rs 3600 to Rs 4100 per 40 Kg. The rate of Banola is in between Rs 1400 to Rs 1650 per maund. The rate of cotton in Punjab is in between Rs 8700 to Rs 9200 per maund. The rate of Phutti is in between Rs 3700 to Rs 4500 per 40 kg. The rate of Banola is in between Rs 1600 to Rs 1800 per maund.
The rate of cotton in Balochistan is in between Rs 8600 to Rs 8750 per maund. The rate of Phutti in Balochistan is in between Rs 4300 to Rs 5000 per maund.
The Spot Rate Committee of the Karachi Cotton Associated has increased the rate of cotton by Rs 150 per maund and closed it at Rs 8850 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that mixed trend was witnessed in international cotton market.
Fluctuation was seen in the Rate of Promise (Waday Ka Bhao) of New York Cotton under the influence of fluctuation in the rate of dollar. Moreover, due to USA-China trade conflict and due to weekly USDA export report which show a significant decrease of 82% compared to the previous week affected the rate of New York Cotton.
The rate of cotton remained stable in China, Brazil and Argentina. A little bit increase was witnessed in the rate of cotton in India.
A tough contest was witnessed in the elections of Pakistan Cotton Ginners Association 2020-21 between two groups however Cotton Ginners group won all the seats with majority. Dr Jassomal Lemani was elected as chairman; Chandarlal Gangoja was elected as vice chairman and Tufail Malik as senior vice chairman.
In the elections of Karachi Cotton Association 2020-21 Atif Abdul Shakoor Dada was elected unopposed as chairman; Hamayun Zafar as senior vice chairman, and Rizwan Umar as chairman.
Newly elected chairman of PCGA, Dr Jassomal while talking to Naseem Usman vowed that “we will do our utmost to create awareness among the cotton growers to increase the cotton production in the country. We will work for the availability of good quality cotton seeds. The ginning processor has also become very poor. We will try to improve it as well. In India since 2006 Double Roller machines were used for ginning. We will try to introduce latest ginning machine which will be beneficial for ginners”.
FPCCI, PCGA is organizing a seminar in Islamabad with the collaboration of Jahang Group in Islamabad on October 8 on cotton production capacity and modern day requirements.
The seminar will be addressed by minister for National Food Security Syed Fakhar Imam, chairman FPCCI Mian Anjum Nisar and Chairman PCGA Dr Jassomal Lemani. The invitations will be sent to President Dr Arif Alvi and Prime Minister Imran Khan.
Moreover, Economic Co-ordination Committee of the cabinet approves abolition of regulatory duty and additional customs duty on 164 items related to textile sector. The local textile sector is relatively improving. The demand and price of cotton yarn and textile products are stable, although it is becoming difficult to pay.
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