KARACHI: Fluctuation of Rs 1000 per maund in the rate of cotton. The spot rate increased by Rs 300 per maund. Bullish trend was witnessed in international cotton market. The import increased by mills. The ginners of lower Sindh stopped ginning and started selling Phutti. According to the experts it would be impossible to increase cotton production if effective cotton seeds are not developed and support price of cotton is not fixed.
The cotton business relatively remained low during the last week due to the cautious buying by the textile and spinning sector and due to the avoidance shown by ginners in selling cotton. However, upward trend was witnessed in the rate of cotton during the fist three days of the week. Due to the panic buying by some textile mills the rate of cotton reached at Rs 10,500 per maund which is highest in ten years. Moreover from Wednesday evening the textile mills adopted cautious attitude. But after that panic started among ginners due to which the trading volume decreased and the rate of cotton after decreasing by Rs 500 per maund reached at Rs 10,000 but mills were not showing interest in buying on this rate.
On the other hand the farmers and traders of Phutti, who had stored Phutti, started selling Phutti, the tussle going on through out the week in the market. The textile mills decided to increase buying on Friday and Saturday on October 18, after discussing the statistics released by Pakistan Cotton Ginners Association regarding production of cotton till October 15 due to which the trading volume decreased further.
The rate of cotton in Sindh is in between Rs 8800 to Rs 9800 per maund. The rate of Phutti is in between Rs 4000 to Rs 5200 per 40 Kg. The rate of Banola is in between Rs 1700 to Rs 2000 per maund.
The rate of cotton in Punjab reached in between Rs 9400 to Rs 10,500 per maund but after decreasing the rate is Rs 10,000. The rate of Phutti reached in between RS 4700 to Rs 5500 per 40 Kg but after decreasing by Rs 300 the rate is Rs 5200. The rate of Banola is in between Rs 2000 to Rs 2200. The rate of cotton in Balochistan is in between Rs 9000 Rs 9200 while the rate of Phutti of good quality is in between RS 4700 to Rs 5500 per 40 Kg.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 300 per maund and closed it at Rs 9800 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that overall bullish trend was witnessed in the international market. The rate of cotton increased in New York Cotton Market due to many factors. It is expected that Rate of Promise (Waday Ka Bhao) of New York Cotton will decrease due to Delta Hurricane, America and China trade conflict and unexpected decrease in exports as per USDA export report. However, China has stopped its import from Australia and China will import more cotton from America. Keeping in view this development rate of cotton of New York Cotton may not decrease.
Bullish trend was witnessed in India over all, the rates of cotton increased by Rs 600 to Rs 800 per candy.
Bullish trend was also witnessed in the rate of cotton in Brazil, Argentina and Sudan while the rate of cotton remained stable in Australia. China had stopped import from Australia. It is expected that China will increase its import of cotton from America and Brazil.
Naseem Usman told that production of cotton in the country is decreasing very fast however the concerned government departments are not taking it seriously. There is a dearth of practical steps in this regard. The cotton producing area is decreasing day by day while the sugar mafia is stronger day by day and cultivating sugar cane on the cotton area. The government had no strategy of demarcating the cotton area at district level.
On October 8, in connection with world cotton day cotton seminar was organized by FPCCI, PCGA with the collaboration of media in Islamabad which was attended by Naseem Usman also. The speakers showed their reservations regarding future of cotton in the country.
While addressing the seminar Syed Fakhar Imam stressed on evolving a strategy for increasing the cotton production. He also said incentives should be given to farmers but he said there is no plan of government to import seeds from abroad. The participants were disappointed with this announcement despite of the fact that for the last many years production of cotton is decreasing due to the low quality seeds.
The people related with cotton were of the view that good quality cotton seeds were not available in the country so good quality seeds should be imported from abroad especially from China. They also suggested that services of experts from China should also be taken.
Advisor to Prime Minister on trade Abdul Razak Dawood said that there is a misconception about him that he is against farmers this is totally wrong. He said he is the supporter of farmers. He further said that he was against Support Price because after announcing the support price the rate of cotton increased and it will be difficult for the textile industry to compete. The stake holders were also disappointed with the statement of Razak Dawood because the suggestion of fixing Support Price was seconded by both foreign Minister Shah Mahmood Qureshi and MNFSR Syed Fakhar Imam.
They demanded that availability of good quality cotton seeds should be ensured. They also demanded that since good quality cotton seeds were not produced locally so government should gave permission of importing seeds from China. They further suggested that there should be collaborations in agriculture sector between China and Pakistan.
They stressed on the need for taking steps on war footings for increasing the production of cotton in the country otherwise they said that it is feared that we should rely on imported cotton. They demanded that government should announce support price of cotton as early as possible.
According to the experts effective seeds and fixing of support price of cotton are complex issues. Without solving that's issues increase in the production of cotton is not possible.
As per experts there will be a drastic decrease in the production of cotton this year. Private importers of cotton told that this year up till now import agreements of 23 lac bales. This year the mills needed one crore 40 lac bales to full0fill it's needs. The mills import 50 lac bales to fulfil its demand. Although the rate of dollar is decreasing due to which the mill will increase the import of cotton. On the other hand it is feared that exports of cotton will be affected.
Moreover, All Pakistan Textile Mills Association and Pakistan Hosiery Manufacturers Association opposes raise in energy prices.
Copyright Business Recorder, 2020
Comments
Comments are closed.