KARACHI: In the local cotton market during the last week after the long Eidul Azha holidays, the trading activity lasted only for three days out of which Friday was the third Eid day and people were busy in greetings gatherings while on Saturday trading volume remained low.
The rate of cotton remained stable. Majority of ginning factories were either partially operational or remained closed.
The normal trading activity will resume today (Monday). Textile and spinning mills need cotton that is why it is expected that business volume will increase. The trading volume in linked with demand of Phutti in Punjab. The textile and spinning mills of Punjab will increase buying of cotton from Punjab, due to which the rate of cotton in Sindh is expected to be reasonable. The reasonable amount of predicted rain will affect the crop in good sense.
International cotton markets are showing an overall improvement. Due to the appreciation of the dollar against the rupee, textiles and spinning mills are being cautious in booking cotton from foreign countries.
The dollar is expected to strengthen further, although the strengthening of the dollar will also benefit exports.
Experts believe that demand for textile products is expected to increase in the coming days as new wave of Covid-19 is gaining momentum in India and Bangladesh. Especially in Bangladesh lockdown has been imposed due to the rising cases of Covid-19. Overseas buyers have reduced imports from there and same is the case with India, that's why foreign importers are importing textile products from Pakistan.
As a result, it is expected that trend of increasing demand and of textile products as well as cotton yarn is expected to continue.
The rate of cotton in Sindh according to quality is between Rs 12,400 to Rs 12,900 per maund. The rate of Phutti is in between Rs 4500 to Rs 5300 per 40 kg. The rate of Banola is in between Rs 1700 to Rs 1800 per maund.
The rate of cotton in Punjab is between Rs 13,200 to Rs 13,500 per maund while the rate of Phutti is in between Rs 5200 to Rs 6000 per 40 kg. The rate of Banola is in between Rs 1800 to Rs 1900 per maund.
The rate of cotton in Balochistan is in between Rs 12900 to Rs 13000 per maund while the rate of Phutti is in between Rs 5000 to Rs 5300 per 40 kg. The Banola is available at Rs 1700 to Rs 1900 per maund.
The Spot Rate Committee of the Karachi Cotton Association has stabled the rate of cotton at Rs 12700 per maund.
Karachi Cotton Brokers Forum chairman Naseem Usman told that over all bullish trend prevails in the international cotton markets. The increasing trend was witnessed in the Rate of Promise (Waday Ka Bhao) of New York Cotton which was between 89 to 90 US cents. According to USDA weekly export report in 2020-21 exports witnessed an increase of 16 percent while in 2021- 22 exports witnessed an increase of 36 percent.
The rate of cotton in Central Asia, Africa and Brazil was improved while significant increase was witnessed in India. The rate of cotton in India reached at record level of 59000 per candy (356 kg) while the Cotton Corporation of India increased the price of cotton by Rs 400 to Rs 500 per candy.
Cotton Broker from Ahmedabad India Ajay Dalal told this correspondent that rate of Cotton Corporation of India is Rs 500 to Rs 600 less as compared to market. The reason behind strong price of cotton in India is export of 10 lac bales to Bangladesh.
Moreover, there are bright prospects for textile sector in Pakistan as the import of textile machinery is increasing. According to sources of textile mills circles 20 lac new spindles will be installed in Pakistan in coming years.
The sowing of cotton crop in Punjab is on final stages, where as sowing in Sindh has almost been completed. According to the first estimate report released by Crop Reporting Services Department Punjab, the cultivated area of cotton crop was estimated at Rs 1.279 million hectares which comprises 79.4 percent of the tentative target and about 17.3 percent less than previous year.
Whereas sowing area in Sindh as on July 7th 2021 was registered at 0.592 million hectares which comprises 93 percent against the target of 0.640 million hectares and about 3.7 percent lower than previous year. Total cultivated area in both provinces is about 1.871 million hectares which indicated 83.2 percent against target and about 13.4 percent less than last year. According to the available information, the quality of cotton in both Punjab and Sindh is satisfactory.
Copyright Business Recorder, 2021
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