KARACHI: Appreciation of dollar, limited supply of cotton, boom in domestic cotton influenced by boom in international cotton. The problems of the textile sector remain unsolved, economic recovery is not possible without restoring the exports, says in All Pakistan Textile Mills Association (APTMA) letter to the Prime Minister.
Patron chief Pakistan Textile Exporters Association Khurram Mukhtar said that government should announce special rates for electricity and gas for export oriented industry. A team of Aptma experts is actively working for the rehabilitation of cotton. Cotton production expected to cross one crore bales.
The domestic cotton market was overall bullish after the volatility in cotton prices during the past week. Textile spinners continue to be interested in buying cotton while ginners are also interested in selling cotton.
Trading volume is satisfactory. Due to the large number of ginning factories running, the supply of Phutti is less than before.
The price of cotton increased by about Rs 600 to Rs 800 per maund due to the rise of the dollar and the boom in the international cotton market. The recent spell of rains can affect the quality of cotton.
On the other hand, the government’s campaign regarding buying of Phutti at Rs 8500 per 40 kg is also going on, although in some areas in Punjab, the price of 40 kg is being reported as Rs 8500 to Rs 8600.
According to government sources, the government is preparing a strategy to buy cotton through Trading Corporation of Pakistan to keep cotton prices stable.
Aptma is constantly appealing to the government to solve the problems of the textile sector immediately; especially there is a dire need to solve the big issue of energy.
In this regard, the leader of Aptma met with Federal Minister of Finance Senator Ishaq Dar Sahib and Commerce Minister Naveed Qamar in Islamabad and sent letters to the Prime Minister Shehbaz Sharif. Apart from this, appeals are being made on behalf of the textile sector of Sindh and Balochistan for the restoration of gas to the textile sector.
Sources in APTMA said that in a letter sent to Prime Minister Shehbaz Sharif APTMA claimed that the country’s exports can be increased by 10 billion dollars after the resolution of textile sector issues. There is a severe crisis in the textile sector due to the international recession and due to the sharp decline in the rate of cotton yarn.
Chairman Pakistan Cotton Ginners Association Chaudhry Waheed Arshad and other office bearers are actively working for the solution of the issues faced by cotton ginners.
Pakistan Cotton Ginners Association for the first time has released the statistics of cotton production in the country till July 15. Till this period, the cotton production in the country has been eight lac and fifty eight thousand bales which is said to be encouraging. Considering this, experts believe that if the weather conditions remain favourable, the production of cotton is expected to be around one crore bales.
The rate of cotton in Sindh is in between Rs 17,700 to Rs 17,800 per maund. The rate of Phutti is in between Rs 7,700 to Rs 8,000 per 40 kg.
The rate of cotton in Punjab is in between Rs 18,200 to Rs 18,500 per maund while the rate of Phutti is in between Rs 7,500 to Rs 8,600 per 40 kg. The rate of cotton in Balochistan is in between Rs 17,700 to Rs 17,800 per maund and the rate of Phutti is in between Rs 7,600 to Rs 8,000 per 40 kg.
The rates of Khal, Banola and oil also increased.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 7,00 per maund and closed it at Rs 17,700 per maund.
Naseem Usman, chairman of Karachi Cotton Brokers Forum, said that the price of international cotton continued to increase as a whole. The rate of Future Trading of New York Cotton after increasing reached at 84.48 cent. Increasing trend in the rate of cotton witnessed in India.
According to USDA’s weekly production and sales report, sales for the year 2022-23 67,100 bales were sold.
China was at the top by buying 32, 400 bales. Vietnam was second with 16,000 bales. India bought 7,800 bales and stood third.
Pakistan bought 3,800 bales and stood at the fourth position.
86,100 bales were sold for the year 2023-24.
China was at the top by buying 49,200 bales. Pakistan bought 17,900 bales and came second. Vietnam bought 8,400 bales and ranked third.
According to APTMA consistent year-on-year decline in monthly exports throughout the financial year is worrisome. 50% of existing production capacity is currently non functional.
APTMA Patron-in-Chief Dr Gohar Ejaz has written to Prime Minister Shehbaz Sharif, bringing attention to the critical challenges faced by Pakistan’s textile sector, which contributes more than 60% of total exports.
The textile sector has significant potential to contribute to economic revival, through its dominant position in Pakistan’s export palette. To realize this potential, it is crucial to adopt and implement appropriate policies. The textile industry which has the installed capacity and potential, commits to support Pakistan’s Economic Revival through realizing the additional $10 billion installed export capacity.
Sheikh Khurram Mukhtar, Patron Chief of Pakistan Textile Exporters Association, has said that the special rates of electricity and gas should be maintained for the export sector so that competition with other countries is possible. Our demand is justified because we are asking for electricity and gas at the tariff rate without adding additional costs, not concessions.
On the other hand, the duty drawback and refund claims of 800 billion rupees of exporters should be paid immediately so that the lack of industrial production can be overcome. He said that energy accounts for 30 to 40 percent of the production cost of export products. The government’s removal of special tariffs for the export sector under the energy package will further aggravate the problem.
Already in the month of May alone, the large scale manufacturing sector has decreased by 14.73% and in eleven months by 9.87%. Decline in large-scale manufacturing is detrimental to the economy and worrisome for the government.
He further said that the government has to go ahead with solid planning to deal with the significant reduction in industrial and economic growth. Referring to the past, he said that due to the government’s patronage, the volume of textile exports in the textile sector from 2020 to 2022 increased by 55% to 19.5 billion dollars.
Even now, if attention is paid, this volume can be increased substantially. He said that at present textile exporters have 800 billion rupees with the government in the form of duty drawback and refund claims, if the government returns this amount, then the capital problem for the exporters will also be solved.
Meanwhile, APTMA’s team of cotton experts are actively engaged in providing crop advisory services to cotton growers in the core divisions of Multan, Bahawalpur and Rahim Yar Khan. The main objective is to increase the yield per acre and help the farmers to achieve better quality of cotton through expert guidance and recommendations.
The APTMA team also works independently, visiting farmers regularly to address specific concerns and ensure continuous improvement in cotton production.
The APTMA field team also offers valuable crop advisory services to cotton growers to effectively address deficiencies, focusing on crop-wise and soil-wise nutrient recommendations.
To address potential threats to cotton crops, the field team conducts regular pest scouting in major cotton growing areas of Punjab. By identifying pests and monitoring their populations, the team can quickly respond to any pest outbreaks while minimizing potential damage. On-site recommendations are provided to farmers based on specific pest problems, offering effective and sustainable pest management solutions.
The APTMA field team also advises growers on the necessary picking and storage practices to ensure the quality of cotton is maintained. Proper picking techniques to minimize
fibre damage are demonstrated, and storage guidelines to prevent spoilage and contamination during storage are shared.
Copyright Business Recorder, 2023
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