Traders are hopeful that business activities will soon resume in the cotton market as the government is softening the lockdown from May 9. Market sources said that there is almost no activity in the cotton market for the last one and a half months due to the coronavirus lockdown.
Cotton Analyst Naseem Usman told that government should review the decision of Economic Coordination Committee and announce the support price of cotton and other cotton production will be badly affected. He also said that if the decision of ECC is reviewed before May 31 then there are chances that cotton production will be increased as cotton sowing in Punjab and upper Sindh will be continued till May 31.
He also said that government is continuously rejecting the long standing demand of cotton farmers of announcing the support price of cotton for the last three years and this time farmers are very hopeful that government will accept their demand. He said that power mafia is the biggest hurdle in the way of announcing support price of cotton adding that the mafia is also pressurizing the government.
He showed his apprehension that if the government had not announced the support price this year then this will affect the cotton production next year.
He told that after the decision forward trading was also stopped in the market. He also told that there was already no business for the last one and a half months in the market because of the lockdown due to the coronavirus.
Meanwhile, All Pakistan Textile Mills Association has demanded from the Sindh government that they should allow the whole supply chain of textile to start it's operations. The Punjab government has already allowed the whole supply chain of textile sector that they should resume their operations.
Sindhi government had already given permission of resumption of activities to the export oriented sector which is mostly related to textile sector.
He also said that Karachi Cotton Association has decreased the spot rate by Rs 100 per maund and closed it at Rs 8600 per maund. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8600 per maund. The polyester fiber was available at Rs 160 per kg.
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The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 07-05-2020
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37.324 kg 8,600 160 8,760 8,760 NIL
Equivalent
40 kgs 9,217 171 9,388 9,388 NIL
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