KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Wednesday has increased the spot rate by Rs 200 per maund and closed it at Rs 10,100 per maund.
The local market remained bullish on Wednesday. Market sources told that business activities remained low. According to the analysts a ‘non-event’ event has taken place this fiscal, yet no one has batted an eye. Pakistan, which for the last decade has restricted cotton import during July-December to protect domestic producers, has ‘forgotten’ to re-impose tariffs this year. So far, no farming lobby or cotton ginners association has registered serious protest. There are two theories.
The first suggests that Pakistan was slated to import over 5 million bales in FY20, one-third of which could not materialize due to disruption of global supply chain in the aftermath of Covid-19 and ensuing worldwide lockdown. By July, monthly imports had declined by 72 percent from their peak levels in February 2020.
Cotton Analyst Naseem Usman told that Government of Pakistan seems less interested in increasing cotton production as the Advisor for ministry of food security refused to import quality cotton seed and Advisor for commerce refused for support price in seminar held on 8th October 2020 .There is no effective mechanism to watch the production of seed. Presently he said most of the seed companies are purchasing banola either from ginners are growers which cannot be trusted.
Naseem also said that Pakistan Textile Exporters Association has appealed to the Prime Minister Pakistan for the immediate disbursement of all long outstanding refunds including sales tax, income tax and duty draw back. The association also appealed for the payment of textile policy initiatives (technology upgradation fund, mark up support & duty draw back of taxes).
They also called for the enhancement in the ceilings of Long Term Financing Facility (LTTF) and Temporary Export Reliance Facility (TERF) as huge investement is in pipeline.
Naseem Usman further told that Seed cotton (Phutti) equivalent to 2.688 million or exactly 2,688,385 bales have reached ginneries across Pakistan till Oct 15, 2020, showing a shortfall by 39.45 per cent compared to corresponding period of last year.
According to fortnightly report, issued by Pakistan Cotton Ginners Association (PCGA) here Sunday, 2.29 million or 2,291,514 bales have undergone the ginning process. Arrivals in Punjab were recorded at 1.2 million or 1,213,908 bales and 1.4 million or 1,474,477 bales in Sindh.
Total over 2 million or 2,024,524 bales have been sold out including 2,007,524 bales bought by textile millers and rest of 17000 by exporters.
Stock of cotton bales lying unsold was calculated at 663,861 bales. Total 564 ginning factories were operational in the country including 223 in Sindh and 341 in Punjab. Sanghar district of Sindh continued to remain on top showing arrivals of 743,532 bales, says the report.
Chairman Pakistan Cotton Ginners Association Dr Jasso Mall Limani has appealed to the Prime Minister Imran Khan should convene an immediate consultative meeting of the stake holders and take steps to improve the cotton crop which can put the economy of the country on the path of progress.
Naseem told that 200 bales of Sanghar were sold at Rs 8260, 2000 bales of Khairpur were sold at Rs 9550 to Rs 10,000, 200 bales of Bahawalpur, 1200 bales of Fort Abbas, 1800 bales of Haroonabad, 600 bales of Faqeerwali were sold at Rs 10,500, 400 bales of Yazman Mandi were sold at Rs 10,300, 400 bales of Mianwali were sold at Rs 10,100 to Rs 10,200, 800 bales of Chichawatni were sold at Rs 9850 to Rs 10,100, 400 bales of Mian Channu were sold at Rs 10,000 to Rs 10,500, 600 bales of Ahmedpur East were sold at Rs 10,500 and 200 bales of Multan were sold at Rs 9600.
He told that rate of cotton in Sindh was in between Rs 8600 to Rs 10,200. The rate of cotton in Punjab is in between Rs 8000 to Rs 10,500. He also told that Phutti of Sindh was sold in between Rs 4600 to Rs 5200 per 40 kg. The rate of Phutti in Punjab is in between Rs 4800 to Rs 5500 per 40 kg.
The rate of Banola in Sindh was in between Rs 1700 to Rs 2200 while the price of Banola in Punjab was in between Rs 2000 to Rs 2300. The rate of cotton in Balochistan is in between Rs 9600 to Rs 9700 while the rate of Phutti is in between Rs 5000 to Rs 5600.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by RS 200 per maund and closed it at Rs 10,100 per maund. The Polyster Fiber was available at Rs 156 per kg.
Copyright Business Recorder, 2020
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