KARACHI: The new season of cotton has already begun and at least two ginning factories have partially started operations, and more will start running in June. The price of cotton is in between Rs 20,400 to Rs 21,000 per maund, while the price of Phutti is in between Rs 9,500 to Rs. 10,700 per 40 kilograms. There is an increase in international cotton prices. However, the intense heat has affected cotton sowing.
All Pakistan Textile Mills Association (APTMA) should take active measures to ensure the production of standard cotton. The appointment of Dr Yusuf Zafar as Vice President of Pakistan Central Cotton Committee is considered a positive step for the cotton sector.
The local cotton market witnessed very little activity during the last week. However, there has been a continuous increase in the arrival of Phutti of new season of 2024-25; though it is less as compared to the same period last year. Nevertheless, one ginning factory each in Hyderabad and Bahawalpur has partially started its operations.
Wheat farmers are trapped in a severe crisis, which has diverted their attention away from the cotton crop. Meanwhile, the government is also delaying the announcement of the intervention price for Phutti. Considering the poor condition of wheat farmers, cotton farmers are disappointed. However, cottonseed is arriving from the lower regions of Sindh Province, with a price range of Rs. 9,500 to Rs. 10,700 per 40 kilograms. Although only two ginning factories have started their operations, more factories are expected to start their operations partially from June.
According to received information, the intense heat is affecting cotton sowing.
However, the condition of textile sector is worsening day by day, with a severe financial crisis in the market. There are unbearable delays in payments, with billions of rupees owed to mills, while spinning mills are complaining about delays in yarn payments. In this regard, delegations from Pakistan Cotton Ginners Association (PCGA) and APTMA met recently. To address the issues in the cotton trade, delegations from PCGA and Pakistan Cotton Brokers Association held a meeting, where some proposals were presented regarding the betterment of the cotton trade.
The Spot Rate Committee of the Karachi Cotton kept the rate unchanged at Rs 19,700 per maund.
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, stated that there has been an increasing trend in international cotton prices. The New York cotton futures contract closed at 80.52 American cents per pound.
According to the USDA’s weekly export and sales report, for the year 2023-24, two lac and two thousand and nine hundred bales were sold. China purchased one lac and four thousand and four hundred bales and ranked first. Pakistan bought 42,000 bales and ranked second. Vietnam purchased 21,200 bales, ranked third.
For the year 2024-25, 47,900 bales were sold. China bought 13,200 bales, ranked first. India purchased 12,900 bales, ranked second. Indonesia bought 12,100 bales, ranked third.
A cotton analyst Abid Zaidi stated in a statement that APTMA should take active measures to ensure the production of standard cotton. Pakistani cotton is known for its good spinning ability, but its fibre quality is being compromised due to sub par ginning practices.
Generally, cotton seeds from different regions are not classified before ginning and are mixed randomly, resulting in high variability (high CV %) in fibre properties, which negatively affects the yarn quality.
At the beginning of the cotton season, the amount of trash in cotton is controlled due to the cleaning of cottonseed, which is lifted when the plant turns green. However, as the season progresses, there is a significant increase in the amount of trash in cotton, averaging 9 to 10 percent. The season also starts with high moisture content in cotton, and ginners benefit from the increased demand for new crops by selling cotton with high moisture content.
It seems that APTMA is satisfied with the current situation, as they have not had serious discussions with PCGA to find effective solutions to improve the ginning process for producing standard cotton.
Ginners reasonably argue that our textile sector imports cotton at a higher price not offer a premium price for local cotton.
According to Pakistan’s official standards, Grade-3 cotton should have a maximum of 6% trash content, but contracts are usually made at an 8% contamination level. No other cotton-producing country allows such a high level of non-lint materials and impurities in their cotton, but Pakistan, the world’s fifth-largest cotton producer, does so with the approval of APTMA.
The global market is rapidly moving towards sustainable products, better cotton initiatives, supply chain transparency, and quality improvement measures. Considering this context, it is extremely necessary to reform our traditional ginning and cotton marketing systems. APTMA and PCGA need to address these issues urgently.
Meanwhile, according to the spokesperson of the Central Cotton Research Institute Multan, Dr Yusuf Zafar has been appointed as the Vice Chairman of the Pakistan Central Cotton Committee by the Ministry of National Food Security and Research, and he has taken charge and started working immediately. Dr Yusuf Zafar is an internationally renowned scientist with over 40 years of experience in agricultural biotechnology. He obtained his PhD in Bio Sciences from Quaid-e-Azam University Islamabad and his MPhil in Molecular Biology from the University of Hamburg Germany. Dr Yusuf Zafar has also served as a Minister (Technical) at the International Atomic Energy Agency (IAEA), Vienna, Austria, from 2012 to 2014. He has also chaired the Pakistan Agricultural Research Council Islamabad. The Government of Pakistan awarded him the Tamgha-e-Imtiaz on March 23, 2004, and the Pakistan Atomic Energy Commission awarded him the Best Scientist Award on May 28, 2000. He has participated in over 50 international conferences and symposia and has written over 200 research papers.
Dr Muhammad Naveed Afzal, Secretary PCCCI, and Director CCRI Multan, and other employees and scientists of PCCCI congratulated Dr Yusuf Zafar on taking charge as Vice Chairman PCCCI and expressed hope that under his leadership, issues related to cotton production and PCCCI will be resolved. Dr Yusuf Zafar thanked the employees of PCCCI and assured them of his full efforts for the betterment of PCCCI and cotton production.
Copyright Business Recorder, 2024
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