KARACHI: The local cotton market remained stable on Thursday. Market sources told that trading volume was also satisfactory.
Cotton Analyst Naseem Usman told that the textile sector of Pakistan has been on an uphill since late summers last year all thanks to COVID-19. The blessing in disguise for the sector was backlogged orders as well as new orders diverted from other regional countries like India and Bangladesh amidst COVID-19 lockdown and restrictions.
Textile exports during 7MFY21 increased by 8.2 percent year on year against a growth of 5.6 percent in total exports during the period. Much of the growth in textile exports is attributable to the growth seen in the last five months and in the value-added segment particularly bedwear, home textile, and knitwear. Export volumes of knitwear stood 42 percent year-on-year higher, while export revenue generated from the segment was higher by 19 percent year-on-year in 7MFY21.
Meanwhile, as the value-added textile sector anticipates the resumption of duty-free yarn imports from India, spinners are strongly against the idea maintaining that the item is being imported from 59 countries.
While the value-added sector terms the situation a crisis, spinners insist a false picture is being presented.
“As per Customs data, yarn is already being imported from 59 countries,” Chairman of the All Pakistan Textile Mills Association (Aptma) Sindh-Balochistan Asif Inam said.
“India’s hostile attitude towards Pakistani products is worrying,” the Aptma representative said.
“The data is strangely fabricated to portray a doom and gloom scenario. There was a slight decline in exports when comparing exports of 28 days of Feb 2021 with 29 days in the same month last year (2020 was a leap year),” he added.
The seven-month data (7MFY21) shows that Pakistan has already imported cotton worth $1.336 billion. The massive imports highlight cotton shortage in the country, with production at its record lowest level.
Inam said the government should not allow imports of cotton yarn or cotton from India until the “country goes for trade normalisation with Pakistan”.
“The value-added garment and home-textile industries are facing jeopardy in the wake of unavailability of cotton yarn and abrupt decrease in the value of rupee against dollar,” said Pakistan Apparel Forum Chairman Jawed Bilwani.
“During the past three months, cotton yarn 30/1 prices have been increased by 15pc while it is not available in the market,” he said.
Cotton Analyst Naseem Usman told that The Economic Coordination Committee (ECC) approved the import of cotton through the Torkham border.
The decision has been taken to overcome the shortage of cotton for the textile sector. The cotton will be imported through Afghanistan and the Central Asian States.
The permission to import cotton via Torkham will remain applicable till June 30, 2022. The Finance Minister directed the Ministry of Commerce and National Food Security to remove bottlenecks in the import of cotton.
Nsaseem told that 400 bales of Haroonabad were sold at Rs 12100 per maund.
Naseem also told that rate of cotton in Sindh was in between Rs 10,300 to Rs 11500 per maund. The rate of Phutti in Sindh is in between Rs 4500 to Rs 5100 per 40 kg.
The rate of cotton in Punjab is at Rs 12500 per maund. The rate of Phutti in Punjab is in between RS 4800 to Rs 6300 per 40 kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1800 to Rs 2250. The rate of cotton in Balochistan is Rs 12000 per maund. The rate of Phutti of Dalbadin Balochistan is available at Rs 6300 to Rs 6400 per 40 Kg.
The Spot Rate remained unchanged at Rs 12300 per maund. The Polyester Fiber was available at Rs 218 per Kg.
Copyright Business Recorder, 2021
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