Subdued business seen on cotton market

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

The Spot Rate remained unchanged at Rs 15900 per maund. Polyester fiber was available at Rs 247 per kg.

Cotton Analyst Naseem Usman told that the rate of cotton in Sindh remained between Rs 12500 to Rs 16,700 per maund and the rate of cotton in Punjab was registered at Rs 14,400 to Rs 16,300 per maund.

The rate of the new crop of Phutti in Sindh was remained between Rs 5000 to Rs 7,000 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 13,800 to 16,200 per maund while Phutti prices were high as compared to other two provinces which were Rs 6,200 to 82,00 per maund, said Naseem Usman.

The rate of Banola in Sindh was between Rs 1350 to Rs 2,000 per maund. While in Punjab rates of Banola were between Rs 1650 to Rs 2,150 per maund.

800 bales of Khair Pur were sold at RS 15000 to Rs 15400 per maund, 400 bales of Kot Sabzal (Seed), 400 bales of Bagho Bahar (seed) were sold at Rs 16500 per maund, 400 bales of Khan Pur were sold at Rs 16200 per maund, 1400 bales of Rahim Yar Khan were sold at Rs 16000 per maund, 1200 bales of Haroonabad were sold at Rs 15400 to Rs 15800 per maund, 200 bales of Dharan Wala were sold at Rs 15500 per maund, 800 bales of Fort Abbas were sold at Rs 15300 to Rs 15450 per maund and 400 bales of Vehari were sold at Rs 14100 to Rs 14300 per maund.

Pakistan's textile exports surged to an all-time high of $6.04 billion in the first four months (July-October) of this fiscal year (2021-22) led by the value-added sector, the latest numbers showed.

According to the figures provided by the Pakistan Bureau of Statistics (PBS) and the All Pakistan Textile Mills Association (APTMA), Pakistan's textile exports stood at $4.76 billion in the July-October period of last fiscal year.

The export of textile products registered 25.6 percent growth in October FY22 compared to the corresponding month of FY21, whereas export of textile goods posted a growth of almost 9pc against $1.49 billion export in the preceding month of September of the current fiscal year.

APTMA (South Zone) Chairman Asif Inam credited the growth in the export of textile goods to subsidized energy tariffs. As a result, the textile industry faced a relief in costs. The textile sector faced an increase in demand after the lifting of Covid-restrictions around the world.

During Covid, global buyers turned towards Pakistan. As a result, Pakistani exporters received the opportunity to quote competitive prices and offer better quality products.

Needless to say, the government's initiatives played a major role in helping the textile sector bounce back. The government drastically reduced the input cost of exportable products. Moreover, it resolved the liquidity issues by releasing funds in a timely manner.

In the budget 2021-22, the government proposed several measures. These included a reduction in duty on raw materials to promote exports of pharmaceutical, plastic, chemicals, engineering, and value-added textile products.

Moreover, Minister of State for Information and Broadcasting Farrukh Habib also credited the PTI government. He recalled that the textile mills had started shutting down during the era of PML (N). He said our textile exports are now increasing as a result of special incentives given by the PTI government.

The country's new five-year Textile and Apparel Policy is ready to land in Economic Coordination Committee (ECC) of the Cabinet with the draft altered in line with the recommendations of an inter-ministerial committee, well informed sources in Ministry of Commerce (MoC) told Business Recorder.

One of the major changes in the Policy 2020-25, is to delink duty drawback scheme (DLTL/DDT) with increment in exports.

Copyright Business Recorder, 2021