Stable trend on cotton market

KARACHI: The local market on Tuesday remained bearish and trading volume remained satisfactory.

The spot rate remained unchanged at Rs 13900 per maund. The Polyester Fiber was available at Rs 222 per kg. The rate of cotton in Sindh is in between Rs 13500 to Rs 14000 per maund and the rate of cotton in Punjab is in between Rs 13800 to Rs 14100 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 5500 to Rs 6100 per 40 kg. The rate of Phutti in Punjab is in between Rs 5700 to Rs 6200 per 40 kg. The rate of Banola in Sindh is in between Rs 1600 to Rs 1750 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1800 per maund.

The rate of cotton in Balochistan is Rs 13700 to Rs 13800 per maund. The rate of Phutti in Balochistan is Rs 6300- 6900 per maund.

2200 bales of Sanghar were were sold at Rs 13500 to Rs 13800 per maund, 400 bales of Kotri Kabeer were sold at Rs 13850 per maund, 600 bales of Rohri were sold at Rs 13850 to Rs 13900 per maund, 800 bales of Saleh Pat were sold at Rs 13900 per maund, 2800 bales of Akri were sold at Rs 14000 to Rs 14200 per maund, 200 bales of Tando Adam were sold at Rs 13950 per maund, 2400 bales of Hasil Pur were sold at Rs 13450 to RS 13750 per maund, 600 bales of Toba Tek Singh were sold at Rs 13950 to Rs 14075 per maund, 200 bales of Bahawalpur were sold at Rs 139975 per maund, 1200 bales of Haroonabad were sold at Rs 14000 per maund, 1600 bales of Lodhran were sold Rs 14000 to Rs 14100 per maund, 800 bales of Lodhran were sold at Rs 14050 to Rs 14100 per maund, 400 bales of Bahwal Nagar were sold at Rs 14100 per maund, 1200 bales of Chichawatni were sold at Rs 14000 to Rs 14200 per maund, 1200 bales of Fort Abbas were sold at Rs 14100 to Rs 14200 per maund, 200 bales of Kassowal, 200 bales of Khanewal were sold at Rs 14200 per maund, 1200 bales of Layyah, 200 bales of Mureed Wala were sold at Rs 14050 to Rs 14200 per maund, 2400 bales of Vehari were sold at Rs 14100 to Rs 14200 per maund, 400 bales of Khan Pur were sold at Rs 14300 per maund and 200 bales of Bagho Bahar were sold at Rs 14300 per maund.

The Cotton Crop Assessment Committee (CCAC) has revised downward the cotton production target by 19.5 percent, i.e., from 10.5 million bales set for 2021-22 to 8.46 million bales, after missing the sowing target by 13.4 percent.

According to media reports, the sowing target was set at 2.310 million hectares; however, cotton was sown on 1.871 million hectares. In other words, only 83.2 percent of the sowing target was achieved.

This is quite strange in view of the fact that the present government had set intervention price of Rs5000 per 40kg. And this happened after eight years, which should have sufficiently encouraged the growers to invest in crop management and harvest high yields.

It means that the announcement of mere intervention price was not enough to motivate growers towards cotton. The government, in my view, is required to arrange quality inputs for farmers in time.

Timely availability of inputs is critical to taking timely decisions. Secondly, the government will also be required to make the items that the farmers need ahead of cotton sowing available at affordable rates.

FAS Mumbai (Post) forecasts market year (MY) 2021/2022 cotton production at 28.3 million (480 lb.) bales on an area of 12.6 million hectares. Planted area has declined due to an extended dry spell (which has shortened the planting window) and greater area shifted to pulses and oilseeds due to better prices. Domestic fiber and cotton yarn prices continue to rise due to lower than anticipated production, a recovery in domestic demand, and robust demand for Indian cotton in foreign markets.

Copyright Business Recorder, 2021