The rate of cotton remained stable. The trading volume increased. Due to low cotton production it is expected that 50 lac bales of worth 1.50 billion dollars will be imported. Up till now import agreements of 20 lac bales have been signed. World cotton day was observed for the first time in the cotton producing countries of the world.
In the local market during the last week due to the increase in buying by the spinning and textile mills and increase in the supply of Phutti the rate of Phutti and cotton remained stable. The trading volume was positive.
In Sindh the rate of cotton is in between Rs 7900 to Rs 9000 per maund. The rate of Phutti is in between Rs 3600 to Rs 4100 per 40 kg. Over all the rat of khal and Banola increased. The rate of cotton in Punjab is in between Rs 8600 to Rs 9000 per maund. The rate of Phutti is in between Rs 3600 to Rs 4200 per 40 kg. While in Balochistan the rate of cotton is in between Rs 8700 to Rs 8950 per maund while the rate of Phutti is in between Rs 4100 to Rs 4500 per 40 kg. The rate of Khal and Banola remained stable in Punjab and Balochistan.
The Spot Rate Committee of Karachi Cotton Association has increased the rate of cotton by Rs 100 per maund and closed it at Rs 8800 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that due to untimely rains and extremely hot weather conditions it is expected that production of cotton will be 33 percent less as compared to last week production. It is estimated that in order to fulfill the needs of local textile mills 45 to 50 lac bales of worth 1.50 billion dollar will be imported which is a heavy burden on the economy. Due to very low cotton production in the country there is an increase in the import agreements from abroad. Up till now local mills had signed import agreements of 20 lac bales. The numbers of import agreements are increasing day by day.
This year the quality of cotton is low as the production is also low due to which the mill owners are in panic. In this regard central chairman All Pakistan Textile Mills Association Dr Amanullah Kassim Machiyara in a hurriedly called press conference said that it is expected that only 90 lac bales will be produced while the need of local mills is around one crore 50 lac (10,500,000) bales. In order to fulfill the needs of the local industry it is expected that around 50 lac (5,000,000) bales will be imported of worth 1.50 billion dollars which will be a burden on the economy of the country. Government should provide certified seeds in order to increase the production of cotton while it should announce a five year policy for textile.
Moreover Group leader APTMA Gohar Ejaz in a statement said that production of cotton is decreasing day by day the government should keep an eye on it because cotton is an experience crop on which the textile industry of the country is depending. He also said that textile industry had witnessed 26 percent increase in export interns of quantity because there is a recession in the international market. He expressed his resolve of taking textile exports to 26 billion dollars. Gohar thanked Prime Minister Imran Khan for appointing former chairman APTMA Ahsan Bashir as chairman Task Force on textile. He expressed his hope that after the appointment of Ahsan Bashir efforts will be made to take textile export to 26 billion dollars.
Ahsan Bashir also expressed his hope that all out efforts will be made for achieving the export target of 26 billion dollars till 2024.
Gohar said that textile industry is in profit after 10 years. He said that this sector is progressing due to the personal interest of Prime Minister Imran Khan. He said that the industry had shown 26 percent increase in export interns terms of quantity. The sector is providing jobs to 10 million people.
Naseem Usman told that mixed trend was seen in international cotton market. Fluctuation was seen in the Rate of Promise (Waday Ka Bhao) of New York Cotton Market. Few days back after the news of decrease of tension between America and China trade conflict, American President imposed a ban on 28 Chinese companies due to which at once the Rate of Promise (Waday Ka Bhao) of New York Cotton decreased by 1.50 American cent while on the last Thursday due to the news of decrease of tension between America and China trade conflict and the news of good cotton production in America has witnessed the increase of 2.23 American cent in the rate of New York Cotton. According to the weekly export report of USDA the export of cotton increased by 6 percent as compared to last week, while Pakistan has imported one lac 33 thousand bales of cotton. The bearish trend was seen over all in cotton markets of China and India. According to information received from India Cotton Cooperation of India has started the new crop of cotton from the ginning factories located in North.
In the local textile sector bearish trend was witnessed especially due to the imposition of 17 percent sales tax. The business community was worried due to this and there was no business. Traders are against registration and CNIC number condition. The other day the traders of Faisalabad had received notices from FBR and as a protest business community has hinted out a country wide protest call on October 12 and October 28 and October 29. Moreover, World Cotton day was observed world wide, on October 7 and especially to celebrate this day Pakistan Institute of Cotton and Research has conducted seminars in Islamabad and Karachi. While FPCCI conducted seminars along with Sibbi University in Balochistan and seminars were conducted in Rahim Yar Khan and Hasilpur.
Karachi Cotton Brokers Forum cut in Karachi Cotton Association Building to mark the World Cotton Day and brokers express their views on this occasion. Chairman Karachi Cotton Brokers Forum Naseem Usman told that this day was celebrated world wide where there is cotton production. The cotton day celebrations were initiated by four small African countries. World Cotton Day was also observed in Geneva. He said that cotton production was going down day by day. The quantity of crop was decreased over the years due to which the textile mills have to import cotton to fulfill its needs. They requested the government to provide certified seeds in order to increase the production. The available seeds are of no use. Moreover keeping in mind the world wide climate change new strategy would be evolved for sowing of cotton. The use of inferior quality insecticides should be stopped as well as there is a need to focus on fertilizers.
Moreover, secretary of Karachi Cotton Association Aftab Ahmad in his address said that association gave suggestions to increase the production of cotton while the trading of cotton took place under their supervision and they redress the complaint. They also forced the government to start Hedge trading of cotton.
Mian Zahid in his address said that biggest reason of low cotton production is the use of substandard seeds. He also said that first of all availability of quality seed should be assured. He said that cotton should be sowed according to the districts and areas.
Chander Lal in his statement stressed on the government to focus on agriculture and take measures to increase agriculture production especially cotton production. He said that government should focus on increasing cotton production in Balochistan. The province has a potential of cotton production and sowing area of cotton production should be increased.
Gardari Mal in his statement stressed on the need of use of certified seeds and to end the use of substandard medicine.
Nasir said that quality can only be enhanced after complete eradication of low standard medicine. He also said as a result of low cotton production the cotton is imported from abroad after spending heavy foreign exchange which has a negative impact on the economy.
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