WEEKLY COTTON REVIEW: Prices maintain increasing trend

The trend in increase in prices of cotton remained continued. Cautious attitude of ginners, transport strike, fog and rains were hurdles behind trade volume. Special Task Force under the chair of Prime Minister was constituted to look after the production of cotton, complaint for not allocating money for cotton in agriculture emergency.

In the local cotton market during the last week increasing trend was witnessed due to increasing interest of textile mills in good quality cotton and stocked cotton. Ginners are expecting bullish trend in market after the easing of trade conflict between China and America. They are involved in cautious buying of cotton due to which the prices of cotton increased by Rs 200 to Rs 300. The market volume also increased to some extent, although business suffered due to rains, fog and strike of transport. Due to America and China trade conflict there is unrest in the market. Although ginners have enough stock while the farmers and growers don't have much stock. In the coming days if the things going well then the increasing trend in prices will prevail. In the international cotton market bullish trend was witnessed due to which the interest of local mills in buying of cotton from local ginners has increased. The local ginners had left the stock of seven days while new season will start after seven months. In Sindhi the rate of cotton is in between Rs 7200 to Rs 9300 per maund while the rate of phutti is in between Rs 2800 to Rs 4400 per 40 kg. In Punjab the rate of cotton is in between Rs 7500 to Rs 9300 per maund while the rate of Phutti is in between Rs 3200 to Rs 4600 per 40 kg. In Balochistan there is a limited stock of 4000 bales while Phutti was available in very limited amount.

The Spot Rate Committee of Karachi Cotton Association has increased the rate by Rs 100 per maund and closed it at Rs 9000 per maund.

Chairman Karachi Cotton Brokers Forum Naseem Usman told that over all increasing trend was witnessed in prices of cotton in the international market. Fluctuation was observed in the international market due to the rising tension between America and Iran. It is expected that intensity of trade conflict between China and America will partially come down from January 15. Bullish trend was witnessed in New York Cotton Market. The rate of cotton exceeded 71 American cents which was highest in last eight months. According to the USDA weekly export report the exports were down by 32 percent as compared to last week don't have any impact on market. In Indian cotton the textile mills of China, Vietnam and Bangladesh had started taken interest due to which the increasing trend was witnessed in the rate of cotton. Although, in India the volume of buying by local textile industry is low due to which there is a crisis like situation is there. There is an increasing trend in the prices of cotton due to the news of decreasing intensity of the trade conflict between China and America. It is expected that the there will be a depression in the rate of cotton of America and Brazil after Asian countries interest in import of Indian cotton. Though, America and Brazil has signed agreements for the export of cotton in very large number. The sowing of cotton for new season will start from March and April hardly two to three months are left in the start of sowing season. Our cotton production is facing continuous decrease due to which our textile sector is facing irreparable loss. Moreover, cotton have to be imported from abroad after spending huge foreign exchange which is a big burden on country's economy. Government has to adopt a strategy on war footings. If the government had not taken steps immediately then it is feared that production of cotton will not increase next year. Due to the decrease in the production of cotton the farmers are dishearten and they are showing their interest in the farming of other crops. Few days back during an interesting discussion in National Assembly chairman of Standing Committee of Overseas Pakistani's Sheikh Fayyaz ud Deen who is also a famous businessman and ginners while taking part in the discussion complained that government has allocated Rs 310 billion for agricultural emergency but according to the details no amount is allocated for cotton. The situation of cotton crop in the country is that one crore 35 lac bales were produced in 2015. This year it was government's resolve that one crore 50 lac bales will be produced. According to the estimates 60 lac bales less will be produced from the initial estimate. Textile products has 58 percent share in the Pakistan's exports but no money was allocated for cotton in the allocated amount of agricultural emergency. Parliamentary Secretary National Food Security and Research Ameer Sultan Cheema while responding to the question said that cotton was included in textile ministry but it was again taken out from textile industry and included in NFAR. A special committee has been constituted under the chair of Prime Minister Imran Khan in this regard which is gathering report on weekly basis and also taking weekly briefing on how to increase yield and cotton cultivation area. Government is focusing on increasing the production of cotton. Sheikh Fayyaz said that cotton crop has already arrived in the market and ginning factories, government should stop befooling people they are taking report of which thing. Cotton is an agricultural subject which is also near to the heart of the government. He also said that our farmers are facing hard times and if they started burning their crops government will not save themselves from its heat. According to the experts availability of good quality seeds is the need of the hour for increasing the production of cotton. The seeds which are weather resistant are deficient in the country. Moreover there is a need to provide standardized medicine. The available medicines are mostly substandard. The encouraging news regarding getting export orders by Pakistani exporters during Heimtextill exhibition recently held in German city of Frankfort. This will have a positive impact on local textile sector.