Pakistani traders have secured export orders for more than 200,000 bales of cotton, taking benefit of surplus crop and low prices in the country. Chairman Karachi Cotton Association (KCA) Abdul Shakoor Dada said here on Tuesday that cotton prices are low in the country and exporters have taken advantage of this situation.
He pointed out that most these orders have been negotiated with the importers in Far Eastern countries including Taiwan, Thailand, Indonesia.
Dada said that some European merchants have also entered into contract to purchase Pakistani cotton.
According to reports, the country is likely to have a record 13 million bales of cotton this season.
A cotton broker said that the silver fibre was available in abundance this season and phutti prices were ranging between Rs 750 to Rs 875 per 40 kilograms.
The spot rate for Grade 111 with staple length 1-1/32" was Rs 2,113 per 40 kgs which is still lower than last year. It is feasible to export cotton this year at this price, he added.
He said that international prices were also lower this year due to surplus cotton production.
He said the Prime Minister Shaukat Aziz has issued the instruction for the export of at least 100,000 bales of cotton from surplus crop to stabilise the prices in the local market.
According to the cotton registration office of Export Promotion Bureau (EPB), exporters have registered about 88,557 bales of cotton for export purposes till October 15, 2004.
This included 49,162 bales from old crop and about 39,595 bales of cotton from present crop, deputy director of EPB, Imdad Khan said.
The broker said the country might export 500,000 bales this year as the size of the crop is larger than the consumption of local textile mills.