Dullness prevails on cotton market

The cotton market remained dull despite easing of lockdown. Market sources told that cotton trading will fully resume after Eid holidays. They also said that after the easing of the lockdown the demand of the textile products is increased to some extent but the trading of yarn and cotton will fully resume after Ramazan and Eid holidays.

Cotton Analyst Naseem Usman told that on Wednesday a delegation of Pakistan Cotton Ginners Association headed by its chairman Mian Javed Sohail Rehmani called on federal minister for National Food Security and Research Syed Fakhir Imam to discuss issue of buying of stock of 5 lac bales of cotton through Trading Corporation of Pakistan as well as issue of abolishing sales tax on Khal and issue of locust attack on cotton crop was discussed in detail. It is expected that result of the meeting will proved to be positive and all the issues will be resolved soon.

Naseem said that in some areas there is an extreme threat of attack of locusts but it is difficult to say anything before time. He also said that there are contradictory reports regarding sowing. Most of the reports were not positive. He said that both federal and provincial governments should take steps to save the cotton crop from the locust attack.

The sowing has completed in lower areas of Sindh while sowing is going on in upper areas of Sindh and many areas of Punjab. In some sowing areas rain proved to be beneficial for the crop but in some areas cotton has to be re-sown due to hail storm.

There is a collective complaint of farmers that this year quality of seeds is not good. The germination level of seed is 30 percent to 50 percent.

Naseem told that there are two conflicting opinions regarding the cotton support price. Ginners and farmers are of the view that government should announce the support price of cotton before the ending of sowing season which is May 31 after that any announcement will not be beneficial for increasing the production of cotton. On the other hand All Pakistan Textile Mills Association is not in favour of announcement of cotton support price.

Naseem Usman said that spot rate remained unchanged 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 157 per kg.

===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
                     FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference
                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi
                                                   on  19-05-2020
===========================================================================
37.324 kg         8,600       160         8,760        8,760            NIL
Equivalent
40 kgs            9,217       171         9,388        9,388            NIL
===========================================================================