KARACHI: The cotton market has stabilized, with a satisfactory business volume. However, trading activity was affected due to rainfall.
Several ginning factories in Sindh have partially shut down due to a shortage of high-quality cotton and Phutti. Business is expected to pick up after Ashura. The Pakistan Textile Council (PTC) is urging the government to withdraw stringent tax and administrative measures to protect the textile sector.
Minister of Industry and Production, Tanvir Hussain, while addressing the meeting of Pakistan Central Cotton Committee said to boost cotton cultivation, farmer facilitation centres are being established. The aim is to increase cotton production to 1.5 crore bales by next year.
The local cotton market experienced stability in prices over the past week, with a notable increase in business volume. Textile and spinning mills are actively pursuing purchases. However, excessive rainfall and moisture have led to the closure of several ginning factories.
Meanwhile, mills are expressing interest in importing high-quality recape cotton from the United States. According to import agents, the decline in New York cotton prices has prompted large mill groups to secure import contracts for approximately 5,000 tons of cotton, valued at 74-75 American cents per pound, equivalent to Pakistani rupees 16,500-17,500 depending on quality. The shipment is scheduled for August-September. Moreover, mills can utilize the EFS facility when
signing import contracts, which provides an added advantage.
Industrial stakeholders are vehemently opposing Independent Power Producers (IPPs). In a recent interview, APTMA’s Patron-in-Chief and former caretaker Commerce Minister, Gohar Ejaz, stated that the presence of IPPs is hindering the operation of industries in the country. He proposed that stakeholders engage in dialogue to review and revise the IPP agreements. Ejaz stressed that the country’s economic future is at risk, and a solution must be urgently found to address this critical issue.
The rate of cotton in Sindh is in between Rs 18,000-18,300 per maund. The rate of Phutti is
in between Rs 7,600-8,400 per 40 kg
The rate of cotton in Punjab is in between Rs 19,000-19,500 per maund. The rate of Phutti is in between Rs 8,700-9,300
per 40 kg.
The rate of cotton in Balochistan is in between Rs 18,100-18,300 per maund. The rate of Phutti is in between Rs 8,300-8,700 per 40 kg.
The Karachi Cotton Association’s Spot Rate Committee reduced the spot rate by Rs 300 and closed it at Rs 18,300 per maund.
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, told that the global cotton market has experienced price stability. According to the USDA’s weekly export and sales report, the 2023-24 season saw the sale of 54,100 bales, with China emerging as the top buyer, purchasing 15,800 bales. Pakistan secured the second position, buying 10,100 bales, followed by Turkey, which purchased 5,000 bales.
In the 2024-25 season, a total of 69,500 bales were sold, with Mexico leading the pack, buying 23,400 bales. Vietnam ranked second, purchasing 10,900 bales, and Guatemala came in third, buying 7,900 bales.
The Punjab Agriculture Department (PAD) has established 62 Kissan Sahulat Centers in cotton growing areas of the province with the objective to provide quality pesticides and other agricultural inputs to the growers at discounted prices.
Speaking at a review meeting at the Agriculture House on Friday, the Secretary for Agriculture Punjab Iftikhar Sahoo said that the growers can also benefit from the expert advisory services available at these Sahulat Centers.
He said 3.4 million acres of land had been brought under cotton cultivation this season with aim to boost production and meet a target of 6.5 million cotton bales. Field formations have been tasked to achieve this goal.
He instructed officials to provide timely weather-based advisories to cotton farmers, especially on crop care during and after rains. Vigorous pest scouting and technical support on pesticide usage were also prioritized, emphasizing targeted spraying based on identified hot spots.
Furthermore, he urged the daily compilation of cotton arrival data at ginning factories and stressed zero tolerance for any lapses in technical guidance to farmers.
The meeting was attended by Director General Agriculture Extension Chaudhry Abdul Hameed, Consultant Agriculture Department Dr Muhammad Anjum Ali and other senior officers.
Copyright Business Recorder, 2024
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