The prices of cotton witnessed increasing trend in the cotton market. The ginners had the stock of only 500,000 bales. In the international cotton market mixed trend was seen in the prices of cotton. The increase in the cultivation land of cotton is necessary to increase the production of cotton. Keeping in mind the vision of Prime Minister Imran Khan, the officials of Federal Agriculture Council instead of setting the target of production of cotton should seriously conduct the survey of cultivated land and then set the target.
In the local cotton market due to increase in buying by the textile and spinning mills the prices of cotton increased by Rs 100 to 200 while increase in trading volume was also recorded. Good quality cotton was sold at Rs 9,400 after nine months. Before that, good quality of cotton was sold at Rs 9,500 on July 8, 2018.
The prices of cotton in both Sindh and Punjab remained Rs 7,500 to Rs 9,200 per maund. The ginners had left the stock of Rs 500, 000 bales. The buying trend of mills shows that before the start of new season all the stock of cotton will be sold out.
The Karachi Cotton Association (KAC) Spot Rate Committee increased the spot rate price by Rs 200 per maund and closed the rate at Rs 9000 per maund. Chairman Karachi Cotton Brokers Forum Naseem Usman said that for the new season 2019-20 partial sowing was started in the Lower Sindh and Punjab. Due to the rains in Punjab there is a delay in harvesting of wheat but there is a plenty of time for cotton sowing.
It is expected that arrival of Phutti will be starting in the second week of June from the Lower Sindh. Although, the voices were heard in the market regarding trading in the Rate of Promise (Waday Ka Bhao) of Phutti.
The Federal Agriculture Council has set the target of production of 15 million bales in the year 2019-20 according to the vision of Prime Minister Imran Khan. According to the experts the FAC initially estimated the production of 14.3 million bales but during the meeting of Cotton Crop Assessment Committee the cotton production is 1 crore 8 lac bales which is less then 35 lac bales less than the initial estimate.
Moreover, FAC made their estimation on the basis of cotton bale weighing about 170 kg while Pakistan Cotton Ginners Association, Karachi Cotton Association and All Pakistan Textile Mills Association made their estimation on the basis of cotton bale weighing 150 Kg. If the estimation was made on the basis of 170 Kg then the cotton production will be 1 crore bales. It means that production of cotton is less than 43 lac bales against the FAC estimate of production of 1 crore 43 lac bales. FAC should keep in mind all these things bore starting the estimation.
Mixed trend was seen in international cotton market after fluctuation. China hinted to import 8 lac tons bales which is approximately equal to 47 lac cotton bales while on the other hand China showed its interest of selling 10 lac bales from its old stock. The price of cotton in America remained between 76 to 78 American cent because the prices of cotton in America are linked with weather conditions and fluctuation in dollar price.
The prices of cotton witnessed upward trend in India because of the decrease of 35 lac bales in the production target. The initial production target was 3 crore, 65 lac bales which is now 3 crore, 20 lac bales. In India export of cotton is also affected and it is expected that export of cotton will be 45 lac bales which is lowest in ten years.
The increasing trend in the demand and prices of cotton was witnessed. Advisor to Prime Minister on Commerce, Textile, Industries and Production Abdul Razzaq Dawood said that China will import 313 items of worth 1 billion dollars which include rice, sugar and 3 lac and 50 thousand tons of cotton yarn. There will be a positive impact on local yarn market due to import of yarn by China.
Comments
Comments are closed.