Weekly Cotton Review: Govt departments making efforts aimed at boosting output

KARACHI: The rate of cotton remained stable. The rate of cotton witnessed a significant increase in the international cotton markets. Concerned government departments are actively working in order to increase the production of cotton.

Quality seeds, pesticides and DAP fertilizer should be provided on reasonable rates. It is expected that production of cotton may increase if the weather conditions remained favourable and cultivation area of cotton increased. Federal Board of Revenue has rejected the proposal of ministry of agriculture of abolishing taxes on pesticides, tractors and other agricultural products.

In the local cotton market during the last week trading remained stagnant. The trading volume remained very low. Ginners had left very limited stock. Sometimes there is mill to mill trading. One international organisation sold cotton of and on but the stock of cotton left with that organisation is limited.

The future trading of Phutti for the next year is going on. The Phutti was sold in between Rs 7400 to Rs 8400 per 40 kg for delivery in between May 15 and June 15 to June 20. The sowing of cotton has started in some areas of lower Sindh and hopefully arrival of Phutti will soon be started.

It is encouraging that this year government has increased the support price of cotton by Rs 700 per maund and fixed it at Rs 5700 per 40 kg but if the price remained low then government will buy two million bales through Trading Corporation of Pakistan in order to bring stability in price. Due to this timely decision farmers will grow cotton. Last year farmers don’t get good price.

Moreover, agriculture minister Punjab is very actively working in order to increase the production of cotton. It is expected that government may fix the production target at one crore thirty lac (13,000,000) bales.

According to the sources of finance minister in order to achieve the target government will give incentives to the farmers which includes provision of DAP on subsidised rates. According to the experts if the weather conditions remained favourable and the farmers get good quality seeds and fertilizers and water production of cotton will witness an increase in the next season. The sowing of cotton has started in Khanewal.

The rate of cotton in Punjab is in between Rs 18,000 to Rs 20,000 per maund while the rate of Khal, Banola Khal and Banola oil remained stable.

The Spot Rate Committee of the Karachi Cotton Association stabled the rate of cotton at Rs 20,000 per maund.

Karachi Cotton Brokers Forum chairman Naseem Usman told that over all bullish trends prevails in international cotton markets. On Friday the Rate of Future Trading of New York Cotton after increasing by 4.5 American cents reached at highest level of 126 American cents. According, to the weekly USDA export and sales report 371,400 bales were sold while 325,500 bales were exported. Bullish trend prevails in the cotton markets of Brazil, Central Asia, Africa and India.

Cotton Analyst Naseem Usman told that as a result of timely decision of government of fixing the support price of cotton, the production of cotton in the next season will increase.

The Ministry of National Food Security and Research submitted a summary regarding intervention price for cotton 2022/23 crop. To revive cotton production in the country, bring stability in the domestic market and assure fair return to the farmers, the ECC allowed Rs 5,700/40kg threshold intervention price for cottonseed.

The meeting also allowed to initially procuring two million bales of cotton at the intervention price with directive that the quantity would be reviewed on a monthly basis.

Malik Talat Sohail, Executive Member, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Pakistan Cotton Ginners Association (PCGA) said that sowing season has formally started in Punjab for the season 2022/23 in a field developed at Khanewal under the auspices of Khaksar Crop Sciences. He said that last year we launched a campaign to save the economy by growing cotton and we will continue it till the economy is fully restored. Our awareness campaign yielded the best results with the additional production of 2 million bales of cotton.

In the past, the economy has been in a state of disarray due to inattention to white gold, which is a deliberate scheme of the enemy of the country.

He said that price of sugarcane has come down to Rs200 per mnd, whereas last year the price of cotton was up to Rs 10,000 per mnd. As a result, cotton growers have received adequate compensation for their produce. Cotton growers are also likely to get higher compensation than other commodities in the coming cotton season. It should be noted that the process of cotton cultivation in Sindh has started from last 15 days.

Considering the futures trading in the international markets, the price of cotton in the coming season will also be higher than that of other crops. Advance deals for the new crop in June have started at Rs 8500 to Rs 9000 per mnd.

High cotton production guarantees the development of the country. MD Khaksar crop sciences Rana Muhammad Tahir GM Khalid Haider and Malik Tanveer Arshed also present at the Occasion.

According to the provisional figures compiled by the Pakistan Bureau of Statistics (PBS), exports from Pakistan during February 2022 grew by 7.9 percent to $ 2.820 billion as compared to $ 2.614 billion in January 2022. They increased by 36.4 percent as compared to $ 2.068 billion in February 2021.

There were indications that the growth in imports has started to decline. The imports in February 2022 decreased by 2.14 percent to $ 5.907 billion as compared to $ 6.036 million in January 2022.

Punjab Agriculture Department has decided to ensure traceability of available seed in order to facilitate farmers in sowing of silver fiber.

“Cotton is the most important crop of our country. The present government is taking all possible steps to increase yield of cotton crop and reduce the chances of pest infestation on the next crop,” this was said by Minister for Agriculture, Punjab Syed Hussain Jahania Gardezi while presiding over the first meeting of the Cotton Planning Committee held at Civil Secretariat on Monday. DG Agriculture (Extension) Dr Anjum Ali briefed the committee about the situation of cotton. On the occasion, the minister directed the department to ensure the supply of approved varieties of cotton seeds to the farmers for the next cotton crop and take legal action against the fake seed mafia. The provincial minister said that breeders are working for the promotion of new varieties of cotton. SOPs should be set up for them so that technically sound person could develop varieties in future.

In addition, no NGO should provide any kind of technical guidance to cotton growers without the approval of the Agriculture Department. In the meeting, the provincial agriculture minister paid tribute to the officials of the Agriculture Department for better production of cotton crop in 2020-21.

Copyright Business Recorder, 2022