KARACHI: The rate of cotton witnessed an extraordinary decline of Rs 15,00 to Rs 2,000 per maund. The spot rate also decreased by Rs 800 per maund .The main reason for the decline is the decline in the rate of dollar, besides the quality of the available cotton is said to be relatively low.
Increase in supply of Phutti was noted in Punjab. There is about 80% increase in cotton production; hence, the import will be less.
In the local cotton market, the price of cotton has dropped significantly during the last week. Significant reduction of Rs15,00 to Rs 2,000 per maund was noted in the market.
There was a cautious buying by textile mills, while ginners were selling cotton even at low prices in a panic. Although the business volume remained satisfactory, the main reason for the drop in cotton prices is the decline in value of the dollar and relatively low quality of the commodity.
In many cotton growing areas, the cotton crop was affected by the attack of Whitefly and in some areas a combined effect of Milly Bug and Pink Ballworm was reported, due to which the crop is likely to be damaged.
Experts say that the cotton crop is being damaged due to high temperature; however, due to the change in weather conditions, the damage is expected to decrease. Quality of cotton is also affected due to recent rains.
According to the information received here, the supply of cotton is expected to increase in the coming days, due to which the possibility of an increase in the price of cotton is slim. Fluctuation was seen in the international cotton market but there are very low chances that rate will be increased.
Cotton production data in the country till September 15 shows that cotton production is expected to be around 90 lac bales, with 50 to 70 percent textile mills are operating in the country. It is expected that production of cotton will be around one Crore and twenty five lac bales.
Sources in the textile sector say that in such a case, there will be a need to import about 10 to 15 lac bales of cotton, as according to the cotton importers, 20 to 22 lac bales of cotton are already being imported from foreign countries.
The rate of cotton in Sindh as per quality is in between Rs 16,000 to Rs 18,000 per maund while the rate of Phutti is in between Rs 7,500 to Rs 8,200 per 40 kg. The rate of cotton in Punjab is in between Rs 18,000 to Rs 18,500 per maund. The rate of Phutti is in between Rs 7,500 to Rs 8,200 per 40 kg. The rate of cotton in Balochistan is in between Rs 16,500 to Rs 17,000 per maund while the rate of Phutti is in between Rs 7,300 to Rs 8,800 per 40 kg.
The Spot Rate Committee of the Karachi Cotton Association decreased the spot rate by Rs 8,00 per maund and closed it at Rs 18,200 per maund.
Naseem Usman, Chairman of Karachi Cotton Brokers Forum, said that there is a fluctuation in the rate of New York Cotton. The rate of New York Cotton was 85.90 American cents.
According to USDA’s weekly export and sales report, 1 Lakh 5 thousand and eight hundred bales were sold for the year 2023-24. Vietnam was on the top by buying 44,600 bales. China bought 25,900 bales and came second. Mexico bought 16,900 bales and ranked third.
As many as 5,100 bales were sold for the year 2024-25. Pakistan was at the top by purchasing 2,600 bales. Mexico was second with 2,500 bales.
Separately, the Punjab government has taken a slew of measures to improve cotton production in the province, particularly for enhancing water availability in the south, where a pest attack has devastated the crop due to hot and dry weather.
The southern Punjab region provides ideal conditions for the invasion of whitefly, a sucking insect that damages the cotton plant and reduces its yield. Wet conditions could have been the only remedy against the infestation, but rain in the last couple of days gave a miss to the southern parts of the province.
The meteorological office recorded rainfall in central and upper Punjab, as well as, lower and central Sindh, but no relief was there for the farmers of south Punjab. It predicted dry weather for the region on Wednesday, the epicentre of the ongoing pest attack.
Keeping in view dry and hot condition, Punjab Agriculture Department took steps on a priority basis to supply water to the tail-end farmers in the cotton areas by next month to get full production of the cotton crop.
Provincial Secretary Agriculture, Iftikhar Ali Sahoo while chairing a review meeting regarding the current situation of cotton in South Punjab said that with the help of drones and helicopters, a total of 57,000 acres in Dera Ghazi Khan Division and 8 thousand acres with the help of power sprayers were sprayed with modern chemical pesticides which has significantly reduced the attack of whitefly. Special teams of the Agriculture Department have been accompanying the farmers during this time.
Guidance on cotton crop irrigation, nutrition and pest management is being provided to farmers. So far this year, the production of cotton in South Punjab has been doubled as compare to last year. The meeting was told that cotton market is stable and farmers are getting better rates.
Secretary Agriculture Punjab urged the district administration officers to solve the issues related to cotton crop on daily basis so that the cotton production target can be achieved. He clarified that higher per acre production of cotton is the guarantee of farmers’ prosperity and stability in the country’s economy. Therefore, for higher production of cotton per acre, the senior officers of the district administration and all the divisional directors will lead this campaign as national agenda by the end of next month and perform with passion.
However, Head Transfer of Technology Central Cotton Research Institute Multan Sajid Mahmood has said in a statement that when we emphasize on climate smart and resilient varieties of cotton keeping in mind climate change, we should also emphasise on cotton management by the farmers.
Better planning through professional methods is essential to teach and communicate management to farmers. For the revival and development of cotton in Pakistan, the Pakistan Central Cotton Committee has to be put on its feet.
All PCCC committees and CCMG meetings have to be re-activated otherwise farmers will stop growing cotton due to new experiments.
All the public and private sectors doing research on cotton can get the desired results only by working under the umbrella of an apex body, Pakistan Central Cotton Committee. A national policy should be formulated for the revival and promotion of cotton and this policy should be issued by the apex body Pakistan Central Cotton Committee and all stakeholders should ensure its implementation.
Copyright Business Recorder, 2023
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