KARACHI: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Thursday increased the spot rate by Rs 200 per maund and closed it at Rs 15900 per maund.
The Spot Rate Committee of the Karachi Cotton Association on Thursday increased the spot rate by Rs 200 per maund and closed it at Rs 15900 per maund. The polyester fiber was available at Rs 247 per kg.
Cotton Analyst Naseem Usman told that the local cotton market remained stable and trading volume remained satisfactory.
The rate of cotton in Sindh remained between Rs 12500 to Rs 16,000 per maund and the rate of cotton in Punjab was registered at Rs 14,500 to Rs 16,000 per maund.
The rate of the new crop of Phutti in Sindh was remained between Rs 4,500 to Rs 5,500 per 40 kg. While Phutti prices in Punjab were between Rs 5,500 to Rs 7,500 per 40 kg.
Similarly, prices of cotton in Balochistan were remained at Rs 14,000 to 16,000 per maund while Phutti prices were high as compared to other two provinces which were Rs 6,200 to 7,000 per maund, said Naseem Usman.
The rate of Banola in Sindh was between Rs 1,350 to Rs 2,000 per maund. While in Punjab rates of Banola were between Rs 15,50 to Rs 2,000 per maund. The rate of Banola in Balochistan today was Rs 16,000 to 2,000 per maund.
100 bales of Ghotki, 400 bales of Mir Pur Mathelo, 3400 bales of Rahim Yar Khan, 200 bales of Chichawatni, 400 bales of Fort Abbas, 1800 bales of Khan Pur, 400 bales of Mian Wali were sold at Rs 16000 per maund, 2400 bales of Yazman Mandi were sold at Rs 15500 per maund, 1200 bales of Saleh Pat, 1000 bales of Dadu were sold at Rs 15500 per maund, 200 bales of Lodhran were sold at Rs 16300 per maund and 1200 bales of Sadiqabad were sold at Rs 16000 to Rs 16200 per maund.
Seed cotton (Phutti) equivalent to over 6.2 million or exactly 62,57,019 bales have reached ginning factories across the country till November 1, registering increase of 81.24 per cent as compared to corresponding period of last year.
According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released on Wednesday, over 5.7 million or 57,27,461 bales have undergone the ginning process i.e converted into bales. Cotton arrivals in Punjab were recorded at over 2.9 million or 2,935,119 bales registering a surplus of 69.83 percent as compared to corresponding period of last year when arrivals were recorded 1,728,285 bales.
Sindh generated over 3.3 million or 3,321,900 bales registering an increase of 92.67 pc as compared to corresponding period of last year when arrivals were recorded 1,724,097 bales.
Textile mills bought 5,504,098 bales while exporters purchased 16,200 bales and Trading Corporation of Pakistan (TCP) didn’t buy during the cotton season 2021-22.
Sanghar district of Sindh topped with cotton arrival figure of 13,02,956 bales followed by Bahawalnagar district of Punjab with 7,51,450 bales. Total 578 ginning factories were operational in the country. Exactly 736,721 cotton bales unsold stock was available in ginning factories.
It is only the beginning of November, yet volume of cotton bale arrivals (at ginning factories) has already surpassed full year FY21’s arrivals. According to fortnightly statistics from Pakistan Cotton Ginners Association (PCGA), cumulative arrivals for the ongoing marketing season by end of October have touched 6.26 million bales (of 170kg), which is 81 percent higher than same period last year!
But of course, FY21 is a poor indicator, as national cotton output during that season had collapsed to a 40-year low, due to devastating rains, locust attacks, and poor germination rate. Although it is improbable that chronic challenges such as seed quality could have fixed themselves in one season, favourable weather seems to have helped yield positive results.
On national basis, cotton arrivals seem to be on track to achieve revised target (by Central Cotton Assessment Committee) of 9.37 million bales, which would be 33 percent greater than official estimate for FY21; and not 75 percent higher, as has been incorrectly claimed by SAPM on Food Security.
Official documents from GoP claimed national output of 7.064 million bales during FY21, which was 25 percent greater than PCGA’s cotton arrivals for the season.
At the time, GoP failed to explain why its official estimate did not reconcile with PCGA’s figures, but lately seems to be relying on PCGA’s estimate for last year in its official communication (refer to PM’s latest speech, televised yesterday, which claimed cotton output in FY22 is higher by 81 percent).
Either way, national cotton output is significantly higher over last year, which is good news for the textile industry and farm incomes, as cotton prices have rallied locally post-harvest in line with international commodity market. Earlier estimates of cotton import bill during FY22 have also been thrown into a flux, as import requirement may now reduce significantly, yielding much-needed foreign exchange savings.
The Spot Rate Committee of the Karachi Cotton Association on Thursday increased the spot rate by Rs 200 per maund and closed it at Rs 15900 per maund. The polyester fiber was available at Rs 247 per kg.
Copyright Business Recorder, 2021
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