KARACHI: The prices of cotton remained stable previous week, as trading volume remained low. Partial arrival of the new crop has already begun, as five ginning factories started working partially.
Caretaker chief minister Punjab Syed Mohsin Naqvi has said that at present, the position of cotton crop is satisfactory. The relevant institutions are actively working to increase the production of cotton. He claimed that cotton production target will be achieved.
Chairman southern zone of All Pakistan Textile Mills Association (APTMA) Zahid Mazhar said that due to the shortage of gas, textile industry of Sindh and Punjab is working at just 50% capacity.
Prime Minister Shahbaz Sharif said that despite the challenges and other difficulties, the government is determined to provide real support to the textile and all export sectors.
Federation of Pakistan Chambers of Commerce and Industry’s Cotton Committee has said that increase in cotton production is inevitable for the revival of the country’s economy.
In the local cotton market, the price of cotton remained stable during the last week, although the business volume was very low. There are reports that one ginning factory in Punjab has started its operation. In Sindh province also, one ginning factory in Sanghar has started operations partially.
One ginning factory in Shahdadpur has made a deal of 400 bales at Rs 20,200 per maund on the condition of delivery from June 6 to June 10. It is expected that some ginning factories in Punjab and Sindh will partially start their operations soon. Up till now the rate of new Phutti is in between Rs 9,500 to Rs 10,200 per 40 kg while the rate of Banola is in between Rs 3,800 to Rs 4,200 per maund.
As per the details, the situation of cotton crop in Sindh and Punjab is satisfactory. According to the experts if the weather conditions remain favourable it is expected that cotton production will be around one Crore bales, though, the government had set the target of production of one Crore twenty seven lac and seventy thousand bales.
Special efforts are being made to increase the cotton crop in the province of Punjab. In this regard incentives are being given to the cotton farmers and for this the government and related institutions are actively working. Governor Punjab and caretaker chief minister is taking interest in increasing the production of cotton. Ginners had the stock of one lac bales of old cotton. The rate of old stock of cotton is in between Rs 1,7000 to Rs 21,000 per maund.
On the other hand, the textile sector is still in crisis, and the situation is feared to get worse with every passing day.
A few days back, PHMA and PRGMEA have jointly requested the government through advertisements in newspapers to resolve the problems of these sectors immediately as their exports are being badly affected.
Moreover, APTMA Southern Zone Chairman Zahid Mazhar said that due to severe gas crisis in Sindh and Balochistan, almost 50% of textile and other industries are barely functioning.
The rate of cotton in Sindh as per quality is in between Rs 17,000 to Rs 20,500 per maund. The rate of Phutti is in between Rs 6,500 to Rs 8,000 per 40 kg.
The rate of cotton in Punjab is in between Rs 19,000 to Rs 21,000 per maund while the rate of Phutti is in between Rs 8,000 to Rs 9,500 per 40 kg.
The Spot Rate Committee of the Karachi Cotton Association kept unchanged the rate of cotton at Rs 20,000 per maund
Naseem Usman, Chairman of Karachi Cotton Brokers Forum, said that there was an overall fluctuation in the international cotton market. The rate of Future Trading of New York Cotton reached at 86.70 US cents a pound, after hitting a low of 80 cents before closing at 83.35 cents a pound. Bearish trend was witnessed in the rate of cotton in India.
According to USDA’s weekly export and sales report for the year 2022-23, one lac thirty one thousand and two hundred bales were sold.
China was at the top by buying 64,800 bales. Vietnam came in second with 30,400 bales. Turkey bought 11 thousand 700 bales and was in the third place.
Bangladesh was at the fourth position by buying 9,000 bales. Pakistan bought 3,800 bales and stood at the fifth position.
One lac and forty thousand and five hundred bales were sold for the year 2023-24.
Turkey was at the top by 54, 600 bales.
Mexico was second with 24,000 bales.
China bought 4,400 bales and stood at the third place.
Meanwhile, due to the large-scale shutdown of industries in Sindh and Balochistan due to gas shortage, the textile industry of Balochistan is forced to work at 50 percent of its production capacity, said Zahid Mazhar, Chairman of All Pakistan Textile Mills Association Southern Zone.
He demanded that the gas produced in Sindh and Balochistan should be supplied to these provinces first and after fulfilling the requirement of Sindh and Balochistan, the excess gas should be supplied to other provinces. On the contrary, gas from both provinces is being supplied to Punjab, which is against Article 158 of the Constitution.
Apart from this, a high-level meeting was held in the Chief Minister’s Office under the chairmanship of caretaker Chief Minister Punjab Mohsin Naqvi, in which the progress regarding cotton sowing was reviewed.
Mohsin Naqvi directed the concerned authorities to achieve cotton sowing and production targets in all circumstances. During the meeting, it was decided that cash rewards will be given to the farmers who get high yield of cotton and the concerned staff will also be encouraged to achieve the desired target of cotton sowing.
It was also decided in the meeting that cotton farmers will not face shortage of any essential items including water, seeds and fertilizers during cotton sowing.
Mohsin Naqvi emphasized that we have to achieve the target of cotton sowing and complete maintenance of cotton fields is also necessary. He ordered the concerned authorities to stop incidents of water theft and assured the supply of essential water to the cotton fields.
He directed to take more effective action against those selling fake medicines and seeds across the province. A proposal regarding survey of crops by satellite was discussed in the meeting.
However, the Prime Minister has emphasized on the importance of innovations in textile sector to increase exports.
Prime Minister Shehbaz Sharif asked the exporters to bring innovation in the textile industry to increase exports, which would help the country earn valuable foreign exchange.
Addressing an event at the Textile Expo, he said, “Despite various challenges, we have very strong, very forward-looking, and very hardworking entrepreneurs who have gradually built Pakistan’s export culture.
Malik Sohail Talat, coordinator of the cotton committee of the Federation of Chambers of Commerce and Industry of Pakistan, while appreciating the government’s policies regarding increasing cotton production this year and the timely decision to set the support price of cotton Phutti at Rs 8500 per 40 kg, said that Punjab government announcement of various incentive schemes for the farmers and vigorous publicity campaign are commendable steps as the increase in cotton production has become imperative to revive the economy.
Copyright Business Recorder, 2023
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