KARACHI: The rate of cotton in local market remained stable. However, trading volume was very low. A bearish trend was witnessed in international cotton markets after some fluctuation.
Severe financial crisis; however, persists in market. Panic is seen in textile sector due to storage of a large quantity of prepared products. There is a need of experiment to increase the production of cotton through Chinese seeds.
Cotton production target in Punjab is eighty two lac and twenty six thousand bales from a crop spread over 50 lac acres. As per details, the rate of cotton remained stable in the local market during the last four working days of week after Eidul Fitr.
However, international cotton prices declined significantly. The rate of Future Trading of New York cotton after witnessing a fluctuation of ten American cents closed at 79 to 80 cents per pound.
However, in the domestic market, ginners will have a stock of around two and a half lakh bales of cotton, out of which there is very limited quantity of good quality cotton.
Textile spinners were taking interest in buying cotton because of the predictions of rains in coming months due to climate change. Due to the interest of ginners in buying the rate of cotton is stable but the trading volume is very low.
Markets are also under severe financial crisis and demand for cotton yarn is very low. Composit units; however, are in a better position while the position of spinners is not so good.
Meanwhile, cotton sowing in the agricultural areas of Sindh and Punjab provinces is said to be satisfactory.
If the weather conditions remained favourable, the arrival of Phutti will start, partially, from the last week of May. It will increase after June 15. However, there is a fear of rains which may cause delay and damage to the crop.
The price of cotton in Sindh province is in between Rs17,500 to Rs 20,500 per maund according to the quality. The rate of Phutti which is available in small quantity is in between Rs 6,500 to Rs 8,000 per 40 kg.
In Punjab province, the price of cotton is in between Rs 18,000 to Rs 21,000 per maund while the price of Phutti is in between Rs 7,000 to Rs 9,000 per 40 kg. The rate of Banola, Khal and oil are stable.
The spot rate committee of Karachi Cotton Association kept the spot rate unchanged at Rs 20,000 per maund.
Naseem Usman, Chairman of Karachi Cotton Brokers Forum, said that due to the low volume of USDA’S last week export and purchase report rate of Future Trading of New York Cotton dropped from 82 US cents per pound to a low level of 76 US cents per pound and later after increasing closed in between 79 to 80 American cents.
According to USDA’s weekly export and sales report for the year 2022-23, one lac and ninety four thousand and nine hundred bales were sold.
Turkiye topped the list with 63,300 bales after including 10,300 bales.
China was second with 45,200 bales (3,400 bales swapped from Singapore), after including 15,800 bales.
Vietnam ranked third with 35,500 bales (1,000 bales exchanged with South Korea. 100 bales exchanged with Taiwan. 100 bales exchanged with Japan), after including 15,100 bales. Taiwan ranked fourth with 18,400 bales, after including 13,900 bales.
Pakistan ranked fifth by buying 11,800 bales after including 3,900 bales.
Nineteen thousand and one hundred bales were sold for the year 2023-24. South Korea was at the top by purchasing 13,200 bales. Vietnam bought 4,400 bales and came second.
Pakistan bought 1,500 bales and stood at the third position.
The Punjab province has set the sowing target of cotton at 5 million acres of land this year with production target of 8.226 million bales.
Major contributor to this sowing target will be Bahawalpur division where the crop will be cultivated over an area of 2.314 million acres of land. This was disclosed at a meeting convened by Secretary Agriculture Punjab Iftikhar Ali Sahoo to finalize the implementation strategy for Cotton Action Plan 2023. During a briefing to the Secretary, it was said that 50,000 tons of approved varieties of seeds is required for cotton cultivation in Punjab. So far, cotton cultivation has been completed on 58,2000 acres. Out of this, 21 per cent land has been cultivated with the approved variety “CKC3” and 11.7 per cent with “CKC06”.
On this occasion, the Director Federal Seed Certification and Registration Department said that 20,000 tons of seed of the approved varieties was available with 60,800 seed dealers, and certified seed is being supplied to the farmers.
The Secretary directed launching of an effective campaign against fake pesticides and said that through this campaign, availability of quality agricultural inputs to the farmers will be ensured.
Apart from this, a subsidy is also being provided to the farmers on buying seeds of the approved types of cotton.
He gave a clear target to the departments related to cotton campaign and assigned special responsibilities to the agricultural extension staff.
He said further that the local administration will also monitor the cotton action plan on the instructions of the Chief Minister of Punjab so that this year cotton is cultivated on maximum area.
In the Central Cotton Research Institute, Multan, with the cooperation of China, different types of experiments are being conducted on cotton and 46 types of cotton with different characteristics of China have been cultivated there.
This was disclosed by Director CCRI Dr Zahid Mehmood in a message.
He said that along with China’s cotton varieties, CCRI has also cultivated nine cotton varieties in experimental fields. These varieties have resistance against viruses and the attack of Pink Ball worm.
Copyright Business Recorder, 2023
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