WEEKLY COTTON REVIEW: No business in local market

The government should fix the support price of cotton as early as possible. The positive measures of the government will be beneficial for textile and business sector in the long run. Hints of establishing task force in four divisions of Punjab to increase the production of cotton observed. Pakistan Cotton Ginners Association has demanded from the government to waive off mark up for six months.

There was almost no business in the local cotton market for the last one and a half months. If there was some trading activity in the market it was not reported.

The Spot Rate Committee of Karachi Cotton Association is issuing the spot rates regularly because on the basis of these rates banks issued loans to the mills and the ginners as well as reporting the rates at international level. During the last four weeks the spot rate is stabled at Rs 8800 per maund. If there was any deal in the market it was on credit that's why it was not reported.

Reduction in interest rate by 4.25 percent, strengthening of Rupee, announcement of deferment of loans by international monetary organizations and donors will be beneficial for the textile and other businesses in the long run.

The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8800 per maund. The ginners had the stock of 5 lac bales out of which majority of the stock is of low quality. The ginners were in panic because they had to pay the interest rate on the stock.

Pakistan Cotton Ginners Association appealed to Governor State Bank of Pakistan Reza Baqir through a letter to waive off the mark up from January to June. The ginners were unable to pay to the farmers because mills were not paying as well as they were unable to sell the stock because of lock down. In this situation farmers will face difficulties in the next sowing season.

Punjab Minister for agriculture Malik Noman Langrial said that for the last 10 to 12 years farmers are passing through difficult times. He said that cotton production has decreased as compared to the last twenty years. Farmers were complaining that they were given substandard seeds and pesticides. He also said that he had constituted a task force in four districts of Multan, Dera Ghazi Khan, Sahiwal, and Bahawalpur to redress the long standing issues of the farmers.

The task force will point out the area of cotton cultivation in each district. How the farmers will be in contact with the dealers and the agriculture department will play the role of facilitator. The field staff will remain in contact with the farmers. He said we will make a 'What's App' group, comprising of dealers and farmers in which farmers can raise their questions and queries in the group and they will share the position of their crop in the group.

In this way dealers are in contact with the farmers adding that if they need seed for the month then the dealer of the seed company will remain in contact with him.

Moreover, any dealer who will supply fertilizer to the farmer will give him the guarantee that supplied fertilizer is not substandard. The pesticides dealers will also ensure that they are not supplying substandard pesticides. The pesticides dealers will supply pesticides farmers according to their needs as well as they will give them expert opinion. He said that government will not influence these stake holders.

He said that with the consent of chief minister Punjab Sardar Usman Buzdar he is nominating Amir Ramazan Gujjar as coordinator for these four districts. He said that he will up date him on daily basis regarding the activities of the committees constituted at district level.

Langrial said that he had requested federal minister Syed Fakhir Imam that he should announce the support price of cotton as early as possible to increase the production of cotton as well as for increasing the cultivation land of cotton.

He also said that availability of good quality seed is necessary. He said that seed germination capacity of almost all companies is 50 percent that's why farmers have to use 10 kg seed per acre instead of 5kg.

He said that we facing problems due to climate change as well as we are facing the challenges of Pink Ball Worm and White fly. In this situation we are trying that we should strengthen our farmers by helping them in every way so that we can get good yield of cotton.

He announced that he will visit Multan, Bahawalpur, Sahiwal and Dera Ghazi Khan division himself and listen to the problems of the farmers himself.

The farmers' representatives are of the view that it has been promised for three to four years that the government will announce the support price of cotton but every year promise was not fulfilled by the government.

They requested federal minister for National Food Security Syed Fakhir Imam and Punjab agriculture minister Malik Noman Langrial to announce support price of cotton as sowing season has started and government has not announced support price yet other wise it will not be beneficial.

Chairman Karachi Cotton Brokers Forum Naseem Usman told that over all the rate of cotton remained stable in the world market. The Rate of Promise (Waday Ka Bhao) of New York Cotton was remained in between 52 American cents to 53 American cent.

Moreover, according to the weekly export report of USDA exports decreased by 36 percent and many deals were also cancelled but the market witnessed no negative impact.

The rate of cotton remained stable in China, while the rate of cotton in India increased by Rs 200 to Rs 300 per candy.

Naseem Usman told that partial sowing has been started in Sindh and Punjab. There were complaints from some districts of lower Sindh that cotton sowing may be effected due to availability of good quality seed and unfavorable weather conditions.

Goma Mull a farmer from Umerkot told that during the last year in these days 50 percent of sowing was completed but this year there was sowing was completed on 15 percent to 20 percent land. He said that in these areas farmers are giving preference to pepper crop.

The farmer Prem Chand from Sanghar district which is the highest producer of cotton in the country told that this year sowing of cotton is satisfactory in the because of the availability of water. Ginner and grower from Tando Adam Ali Muhammad Yousfani also said that situation of sowing is satisfactory in the district.

The Punjab government has directed to start the sowing of cotton after April 15 and it should be completed till May 31. There is a delay in sowing of cotton because of delay of harvesting of two to three weeks in the harvesting of wheat in the province. However, partial sowing has started in some areas.

Rains and hail storm had badly affected the wheat crop. However, these rains are beneficial for cotton sowing. The Punjab government has allocated 50 lac acers for cotton cultivation but the government had not fixed any target.