LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Friday decreased the spot rate by Rs 100 per maund and closed it at Rs 20,100.
Cotton Analyst Naseem Usman told Business Recorder correction was observed in the local cotton market and the trading volume remained low.
Usman added Punjab’s Phutti (per 40 kilograms) attracted prices from Rs 7000 to Rs 9000. Cotton of Sindh was traded from Rs 18000 to Rs 20,000 per maund, while Punjab’s cotton traded from Rs 18000 to Rs 20,000 per maund. He also told that 900 bales of Sadiqabad were sold at Rs 20,000 per maund.
Minister of State for Information and Broadcasting Farrukh Habib on Thursday cited prudent economic policies of Prime Minister Imran Khan as the main reason behind revival of the textile sector playing crucial role in boosting the country’s exports.
“Textile industry was in tatters when Prime Minister Imran Khan came into power. Textile exports jumped to $10.9 billion with 25% increase in seven months of the current financial year due to the policies and by the end of the fiscal year they are expected to reach $21 billion,” the minister tweeted.
In January alone, he said the country earned $1.55 billion from textile exports, gaining a 17.3 per cent growth. The electricity being supplied to textile mills is not up to the mark, rather it is sub-standard as electricity supply with fluctuation, shutdowns, breakdowns and interruptions is causing losses to the industry. This issue has been conveyed in a letter written by the All Pakistan Textile Mills Association (APTMA) on February 15 to Secretary Power Syed Asif Haider.
APTMA built its case in the letter based on the grid performance report from January 1, 2022 to February 6, 2022 listing the shutdowns, breakdowns, interruptions and various bouts of sub-standard supplies being received by member mills through various independent feeders and grids.
In the letter, APTMA also attached the data narrating as to how the electricity being supplied to member mills is extremely sub-standard.
The supply situation to the textile industry as a whole is bleak and nearly all of the mills are being supplied non-standard electricity that has resulted in losses to the APTMA member mills.
The letter also mentions that the unwarranted interruptions in supply are endemic and unfortunately something continuing in nature. On the other hand, it is very important to explain that because of the use of sophisticated machinery by the textile industry, the shutdowns, breakdowns, jerks and interruptions are playing havoc and resulting in huge losses to the industry and to the national exchequer. “Consequently, there is a serious need for immediate corrective action by the DISCOs.”
“On the face of it, shutdowns, breakdowns and tripping can easily be mitigated through up-to-date maintenance etc., but the issue of non-standard supply is something which needs concerted technical actions, which can only be done at the DISCOs level.”
However, the APTMA through its letter to secretary power also suggested some measures to ensure smooth electricity with zero jerks, interruptions, breakdown and fluctuations. As per APTMA suggestions, the industrial feeders — specially, independent and combined ones, have to be shifted to a specific power transformer(s) at a given grid. This would assure that the residual effect of interruptions on general feeders (domestic, agriculture or mixed) does not travel to the industry in the shape of sudden dips or spikes in supply.
It needs to be appreciated that switching of feed-in supply from one source to another from NTDC to DISCOs causes perceptible difference in supply parameters — again leading to machinery shutdowns. Here stability of the national grid is an issue where NTDC too has to include in any meaningful parlay. Similarly, switching-off of large packages of load of allied general load feeders on account of planned loadshedding or breakdowns or faults too leads to problems. Because of various reasons, this type of situation is quite common.
And these specific industrial feeders have to be supplied from power transformers with OLTC facility and those transformers which are newer in manufacture - very clearly laid down in the Distribution Code.
APTMA also suggested that maintenance time tables or rosters should be issued by DISCOs for these feeders so that the needed predictability of supply could be attained. This would be in line with the tenets of SPR 3(f) of the Distribution Code.
Although the schedule will be set in advance, a 48 hours’ notice will always be given to the industry for implementation of any such program. Moreover, APTMA says that this too needs to be kept in mind that the maintenance schedules cannot be spread over the whole year and again have to be implemented during mild weather conditions — primarily during the period September — November (SPR 3(a) of the Distribution Code).
Moreover, ICE cotton futures touched a near three-week low on Thursday, hurt by a weak export sales report and as downbeat sentiment in financial markets also weighed on the natural fibre.
The March contract on ICE futures was down 0.25 cent, or 0.2%, at 121.66 cents per lb, at 11:24 a.m. ET. It traded within a range of 121.5 and 122.72 cents a lb.
Total futures market volume fell by 23,687 to 16,519 lots. Data showed total open interest fell 5,581 to 241,893 contracts in the previous session.
The Spot Rate Committee of the Karachi Cotton Association on Friday decreased the spot rate by Rs 100 per maund and closed it at Rs 20,100 per maund. Polyester Fibre was available at Rs 268 per kg.
Copyright Business Recorder, 2022
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