Stable trend on cotton market

KARACHI: The local cotton market on Saturday remained stable and trading volume was satisfactory.

Cotton Analyst Naseem Usman told Business Recorder the rate of cotton in Sindh is in between Rs 12900 Rs 13000 per maund. The rate of cotton in Punjab is in between Rs 13500 to Rs 13600 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 4800 to Rs 5400 per 40 kg. The rate of Phutti in Punjab is in between Rs 5000 to Rs 6000 per 40 kg. The rate of Banola in Sindh is in between Rs 1600 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1900 per maund. The rate of cotton in Balochistan is Rs 12900-13000 per maund. The rate of Phutti in Balochistan is in between Rs 5100 to RS 5400 per maund.

1600 bales of Tando Adam, 1800 bales of Shahdad Pur were sold in between Rs 12900 to Rs 13100 per maund, 400 bales of Shah Pur Chakar were sold at Rs 13000 per maund, 600 bales of Kotri were sold at Rs 12950 to RS 13000 per maund, 600 bales of Hyderabad and 2400 bales of Sanghar were sold in between Rs 12850 to Rs 13000 per maund.

Naseem Usman told that the cotton sowing has completed over 1.88 million hectares against the set targets of 2.32 million hectares to produce 10.51 million bales during crop season 2021-22.

According the provisional estimates about 80.88 percent of set targets of crop production for current season has been achieved, said an official of Ministry of National Food Security and Research.

In Punjab cotton crop have been cultivated over 1.273 million hectares against the set targets of 1.61 million hectares, he said adding that sowing targets in t he province achieved by 79.07 percent. The crop output in Punjab during the period under review had been fixed at 6.07 million bales with an estimated production of 640.93 kgs per.

Meanwhile, Pradeep Kumar Agarwal, chairman and managing director of CCI, said the corporation had an opening stock of 115 lakh bales of cotton at the start of the season in October 2020.

The Cotton Corporation of India (CCI) has said it has almost exhausted all its existing stocks and is now left with only 9 lakh bales before the start of the next season in October, due to the strong demand for cotton in the market.

Meanwhile, Pradeep Kumar Agarwal, chairman and managing director of CCI, said the corporation had an opening stock of 115 lakh bales of cotton at the start of the season in October 2020 and had procured 92 lakh bales since then.

“International cotton prices and MCX prices have risen by Rs 7,500 and Rs 6,000 a candy, respectively, in the last one-and-a-half months. But CCI has been conservative in increasing prices and has raised prices by Rs 2,200 to Rs 2,500 a candy for the same period, except for one to two varieties, where it is higher,” he said.

In the last one month, 40percent of the cotton sold by CCI has been purchased by textile mills directly. Moreover, Southern India Mills’ Association (SIMA) chairman Ashwin Chandran said in a press release that the increase of ?3,800 a candy of cotton over the past 15 days by the Cotton Corporation of India (CCI) and the 10percent import duty on cotton were affecting the entire textile value chain. It had made textile exports ‘expensive’ in the global market, he said.

Though the CCI offered three months’ lock-in for bulk purchase, textile mills could not benefit due to a liquidity crunch and uncertainty in cotton prices, he said.

The import duty has encouraged price speculation, he claimed. For some varieties, prices of Indian cotton had exceeded the international price.

Pradeep Kumar Agarwal, CMD, CCI, said international cotton prices and MCX prices had risen by 7,500 and 6,000 a candy, respectively, in the last one-and-a-half months. But, he pointed out, CCI had raised prices by 2,200 to 2,500 a candy for the same period, except for 1-2 varieties where it is higher. In the last one month, 40 percent of the cotton sold by CCI were purchased by textile mills directly. The Spot Rate remained unchanged at Rs 13000 per maund. The Polyester Fibre was available at Rs 216 per kg.

Copyright Business Recorder, 2021