KARACHI: Unpreced-ented increase in the rate of cotton in the international markets. The rate of reached at the level of Rs 13000 per maund which is highest in eleven years.
Tussle between All Pakistan Textile Mills Association and Value added sector on import of yarn from abroad. Government should facilitate textile sector instead of creating hurdles otherwise it is feared that the boom in the textile sector will be temporary. Government should evolve an effective strategy for increasing the production of cotton in the country. The sowing season of cotton is very near.
In the local cotton market unprecedented increase was witnessed in the rate of cotton as it reached between Rs 12500 to Rs 13000 per maund which is at the highest level in eleven years. The biggest reason behind increasing trend in the rate of cotton is that the rate of cotton in international market which was 84 American cents after increasing by 10 American cents it reached 94 American cents but according to report of Friday the rate decrease by 4 American cents. Fluctuation was observed in the rate.
In the local cotton market the rate of cotton also increased the biggest reason behind is the alarming decline in cotton production which is 57 lac bales lowest in thirty years. The textile sector got access in international cotton market especially in the markets of Europe and America. Due to COVID 19 many importers of Bangladesh and India are importing many textile products from Pakistan. God has given us a chance if hurdles are not created by government in giving incentives regarding provision of gas and electricity then business the grace of God our exports will be increased. This year State Bank of Pakistan brings down the interest rate due to which the textile sector got the relief. Government should continue its industry friendly policy otherwise the boom in the textile sector will be temporary.
Due to alarming decline in cotton production there is a crisis like situation in Pakistan. In this regard concerned government departments should review its policies. Incentives should be given to cotton growers but it is very unfortunate that government focus is towards sugar mills. The government has given a subsidy of Rs 5000 per acre to the sugar cane growers but the government has not announced such kind of incentives for cotton growers.
Few days back federal minister for Food Security and Research Syed Fakhar Imam announced that subsidy will be given to cotton farmers on cotton seed, fertilizers and pesticides. Still have the cotton sowing is starting in Sindh from next month but according to the sources sowing has started in some areas.
This year due to increase in rate of cotton the price of Phutti also increased. Our farmers per acre yield are very low. It is possible that cotton farmers who stopped sowing cotton will again started growing cotton if government should take practical steps for increasing the production of cotton in the country.
The rate of cotton in Sindh is in between Rs 10300 to Rs 12050 per maund. The rate of Phutti which is available in very limited amount is in between RS 4500 to Rs 5000 per 40 Kg. The rate of cotton in Punjab is in between Rs 10500 to Rs 12500 per maund. The rate of Phutti is in between Rs 4500 to Rs 6100 per 40 Kg. Phutti is not available in Balochistan while the stock of cotton is almost finished.
The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs 300 per maund and closed it at Rs 11900 per maund.
Chairman Karachi Cotton Brokers Naseem Usman told that Rate of Promise (Waday Ka Bhao) of New York Cotton is continuously increasing but on Friday the rate of New York Cotton decreased by four American cents. Although, according to the weekly USDA export report the exports witnessed an increase of 107 %. The America has suspended its trade agreement with China due to profit taking on high rate. This week too China was the biggest buyer of American cotton. The increasing trend was witnessed in the rate of cotton in Brazil, Argentina and Central Asian states while the rate of cotton in India is Rs 38000 per candy in the start now after increasing Rs 7700 per candy reached at the highest level of Rs 45700 per candy.
Moreover, tussle is going on in between All Pakistan Textile Mills Association and Value added sector regarding import of yarn from abroad. APTMA says that we have plenty of yarn available or we don’t need to import them from anywhere while textile value added sector is continuously demanding that due to alarming decline in the product of cotton in the country there is crisis of availability of yarn in the country due to which the value added sector is not getting yarn from anywhere and they are facing difficulties in full filling the export agreement. So government should allow them to import yarn from India through Wahga border so that they can full fill their international commitments.
Copyright Business Recorder, 2021
Comments
Comments are closed.