KARACHI: The spot rate of cotton increased by Rs 500 per maund. Bullish trend was witnessed in international cotton markets. Government has allocated Rs 10 billion under cotton package. Private and public sector organizations are actively playing their role for increasing the production of cotton in the country. Cotton sowing has completed on 50% area and sowing has completed on 15% area in Punjab.
The rate of cotton remained stable in the local cotton market due to the lack of interest showed by textile and spinning sector in buying. On Wednesday some needy mills took interest in buying due to which the spot rate committee increased the spot rate by Rs 500 per maund. Ginners had left the stock of 65000 bales and they were trying to sell it because textile mills were not taking interest in buying. One reason behind lack of interest in buying by the textile mills because the rate of dollar decreased due to which the rate of yarn decreased.
Now again the COVID 19 is increasing and like other regional countries Pakistani government is thinking to impose lock down in the country while on the other hand smart lock down is going on for many days. Other than that traders’ community is showing lack of interest because they feared that if the lock down was imposed like last year they have to bear a huge loss.
Last year many industries remained shutting other than businesses. Many textile mills remained shut for around one and half month due to this they had to face difficult time. Now again there were rumors of imposition of lock down due to which whole the business community is under pressure and not taking interest in business.
It is welcoming that private sector is taking interest in the revival of cotton crop in the country. Pakistan Cotton Ginners Association is actively playing its role and has constituted a task force for creating awareness among the farmers regarding increasing the production of cotton. Other than that regional cotton committee of Federation of Pakistan Chambers of Commerce and Industry and convener of textile and cotton sector Malik Talat Sohail is also very actively playing its role. Government departments are also active due to which activities regarding cotton has increased. Government has also started taking interest in increasing the production of cotton. It looks that allocation of 10 billion rupees by the government for increasing the production of cotton in the country will have a positive impact on the cultivation of cotton.
The rate of cotton in Sindh is in between Rs 10200 to Rs 10600 per maund. The rate of cotton in Punjab is in between Rs 10800 to Rs 11500 per maund. On the basis of quality sometimes cotton was sold at Rs 12000 per maund.
Phutti was almost finished. Most of the Phutti was in ginning factories while most of the ginning factories were not functional. The rate of Banola was not available however the dealers having Khal were not happy because the rate of Khal is continuously decreasing.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 500 per maund and closed it at Rs 11300 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that in the majority of the world bullish trend was witnessed in international cotton market while in some areas the rate of cotton is stable.
USDA weekly export report witnessed a decline of 16% despite of that the rate of dollar decreased and dry spell in Texas the Rate of Promise (Waday Ka Bhao) after increasing reached 88.80 American cents.
The cotton market in Brazil, Argentina, Central Asian states, Africa and India remained either stable or bullish.
Agriculture minister Sindh Ismail Rahu told on Monday that cotton will be cultivated on 600, 000 hecters of land out of sowing has been completed on fifty percent land.
Rahu also participated in ministerial meeting held in Islamabad regarding wheat and cotton. The meeting was presided by Federal Minister for National Food Security and Research Syed Fakhar Imam. He showed his reservation on the quality of seed given to the farmers.
Secretary Agriculture Punjab told that cotton will be cultivated on 40 lac Acers and up till now sowing was completed on 15% land. He also told that government of Punjab under its subsidy program is giving subsidy to farmers on cotton seed and fertilizer. Punjab Seed Council has given approval for the 15 new varieties of cotton.
Official also told the meeting that government will give subsidy to farmers on pesticides for killing white fly through Kissan Card. He also told that government is working on new varieties of cotton and on tracking so that quality seeds should be supplied to the farmers.
Agriculture Minister Balochistan engineer Zamarak told the meeting that provincial government has decided to extend the cultivation of cotton in twenty districts. He said that quality of cotton in Balochistan is better than other provinces. He also told that Balochistan is the first province in the country which is producing organic cotton with non GMO seed.
Federal government has announced Rs 10 billion agriculture package for farmers as per Prime Minister Imran Khan Package for cotton farmers of all the four provinces. As per package subsidy will be given to farmers of all provinces on seeds, fertilizers and pesticides. Moreover, farmers will be given special discount on the loans given by Agriculture Development Bank.
This was disclosed by vice president Pakistan Central Cotton Committee Dr Muhammad Ali Talpur in its statement. He also said that federal government was working on the package for cotton farmers under the leadership of Federal Minister for National Food Security and Research Syed Fakhar Imam. Due to the efforts of other members of the group who worked on the package includes federal secretary Ministry for National Food Security and Research Ghufran Memon and other officials the funds were released to provinces. The provinces will provide funds to the farmers according to their discretion and powers.
Farmers of Punjab will be given Rs 5 billion subsidy on DAP, Rs 127 million subsidy to farmers of Khyber Pakhtunkhwa, Rs 430 million to Balochistan while Rs 2.7 billion was allocated to Sindh.
Rs 1500 subsidy will be given to farmers on per bag of DAP. Rs 3 billion subsidy will be given on cotton seed. According to the break up on the demand of Punjab subsidy of Rs 114 million will be given to Punjab, 0.42 million to Khyber Pakhtunkhwa while 111 million were released for Balochistan. Rs 1.2 billion has been allocated for subsidy on cotton seed in Sindh.
According to the package a subsidy of Rs 1200 per acre has been announced on cotton seed. In the same way Rs 114 million has been released for pesticides to kill white fly in Punjab, 0.45 million for KP, 118.26 million for Balochistan and Rs 1.2 billion for pesticides in Sindh.
Federal government has given subsidy of Rs 1200 per acre on pesticides. In the same way federal government has allocated Rs 7 billion under the head of agricultural loans out of which Rs 4 billion has been released to Agriculture Development Bank which will be implemented from July 1st, 2020.
Mark up of Agriculture Development Bank was reduced for the farmers having land holding up-to 12.5 acre.
Dr Muhammad Ali Talpur was of the view that federal government will provide subsidy to the cotton farmers during the season and utilize funds accordingly to the needs of the farmers.
A delegation of Federation of Pakistan Chambers of Commerce and Industry will met Prime Minister Imran Khan next week. Former President FPCCI Mian Anjum Nisar told this to the regional convener of the Cotton and Textile Committee Malik Talat Sohail during a meeting that a strategy regarding increasing the production of cotton will be on top of the agenda.
Anjum Nisar reiterated his stance that they will play its vibrant role for decreasing the mark up and decreasing the power rates.
Last week FPCCI meeting under the chair of raw cotton committee chairman Atif Dada was held on zoom. All the participants gave proposals regarding increasing cotton production in the country which were compiled by Karachi Cotton Association and will be sent to FPCCI which will be later presented to Prime Minister of Pakistan in the meeting going to be held next week.
Copyright Business Recorder, 2021
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