The delay in meeting and decision when the TCP was entering market to procure cotton caused concern among the small cotton growers as sustained loss in prices continued during the week ended on November, 29 2008, as spot rate and rates in ready maintained downward drift. The spot rate often a slashing Rs 75 was at Rs 2875.
WORLD SCENARIO:
The president elect Barak Hussain Obama and his economic team's move to bail out Citibank prompted huge buying taking futures to 3 cent limit but the tempo could not sustain and profit taking let to losses in contracts. On Monday the buyers were strongly interested owing to Obama and his team's bail out steps to Citibank encouraged buyers, contract surge to 3 cents limit. The front month March rose 3 cent limit to 44.80 cents a pound.
The may was up by same amount to 44.80 cents a pound. However, the market players said the confidence in market was starting to creep back in as the rally was nothing to do with the cotton fundamentals. On Tuesday profit taking by some investors pulled contract down and volatile trading. Worried traders were asking one another whether the pull back in second session seen was a failure or correction. Analysts believed it would be difficult to figure that out for the rest of the week as most players will be leaving for holidays and volumes will be thin as a result.
On Wednesday surprised traders saw futures moving higher on a steady barrage of investor short covering. The development hardened quite a few that the rising tempo had come to stay. They nearly shed the belief that news on poor economic figures was easily absorbed by the market and it seems most players have started to peep beyond bad days. They said only problems for the cotton market was whether financial markets imploded again but if that was not the case cotton prices may have seen a near term bottom.
On Thursday In New York stock and commodities market remained closed due to Thanks Giving Day holiday and hence trading remained suspended and futures behaviour was not released. On Friday futures sustained surge on investor buying after a break owing to Thanks Giving Day holiday on Thursday. Next move, however, for the fibre contracts will depend on the performance of outside markets in days ahead. The dealings were light since most players opted for avoiding session and take a longer holiday. The USDA weekly export sales had practically no impact on trading. Anyway, the March cotton contracts rose 1.36 cents of 47.91 cents per round. The may was up 1.76 cents to 47.86 cents.
LOCAL TRADING:
The cotton trading remain under pressure for two reasons. Primarily the expeditions arrived of phutti and falling prices and ginners threat authorities should meet their demands for raised cotton rate. The two consecutive decline in spot rate right in the beginning of the week added to ginners worries and equally suffering growers.
On the first day nearly 2000 bales of cotton changed hands between Rs 2600 and Rs 2900 per maund. The spot rate was pulled down by Rs 75 to Rs 2875 per 40 kg. Phutti selling in Sindh and Punjab was at ruling rate Rs 1350 and Rs 1450. The market as well as all concerned with cotton and cotton products on further delay in fixing cotton rate and TCP still keeping out of market.
On Tuesday further falling trend was marked with spot rate further reduced by Rs 50 to Rs 2825 and cotton bales changing hands around Rs 2400 at rates between Rs 2690 and Rs 2800. The continued decline had irked the growers and ginners who are suffering continued losses. The textile exporters were however quite happy buyers at low prices, which was likely to lower the cost of doing business and chances were they will have an edge over regional competitors in the recession hit world markets.
On Wednesday trading on the cotton market showed due much to wait and see the outcome of the ginners meeting with authorities and TCP to emerge to mop up cotton despite likely firmer scenario. The consumers however lifted around 12000 bales in price range of Rs 2700/Rs 2900 per maund. The phutti prices ruled practically unchanged in Sindh and Punjab at Rs 1350/1450. Market sources however believed a summary sent to PM suggesting phutti prices at Rs 1465 per 40 kg will be okayed.
On Thursday the trading in cotton remained subdued players waiting for the out come of meeting of stakeholders with finance/textile ministries, and above all entry of TCP to buy cotton. The spot rate therefore remained unchanged and asking prices ruled between Rs 2700 and Rs 2900, which amply suited the buyers. However, a late decision regarding procurement price of cotton will hit the growers most who the authorities claim to hold dear. Nearly 8000 bales of cotton changed hands.
On Friday nearly 7000 bales of cotton changed hands as spot rates stayed put at Rs 2825. Buyers lifted their immediate needs waiting result of stakeholders meeting with authorities. Now the signal was likely to be received for ECC to be held on December 2, 2008. The ECC will review summary how to bring stability in prices.
ARE TRAINED WORKERS BEING EXPORTED?
Garments exports fetch Pakistan maximum income per unit and so must have been workers receiving better remuneration. But a report telling garment sector running short of trained workers is more than surprising. If it is a hope against hope wait that hard pressed government will open training institute to fill vacant places in garment units will it not be better the units engaged in manufacturing and exporting should pool their resources to set up as many as they can, remove the difficulties are being faced by garment exporters.
Normally it is seen that a young man literate or without reading and writing knowledge comes to a tailoring shop asking for a job. The trainee is offered day's food until he picks up and master accept him as a helper. Such a method could work in garment factories, in fact this is the best way. However, the report datelined Sialkot communicates that need for trained workers is not in dozens and hundreds but in thousands.
The city is already earning three million dollars annually and, what is very high and sweet sounding that 80 percent of martial art kits are exported and heartily received. Sometime back some report had claimed garment exports from Pakistan earns one billion dollars, which by now most likely must have been more than believed so far, this fact is, it is hoped, not the victim of high cost of doing business. The office bearers have while demanding trained workers have reminded garment city should be expedited. New investors and new hands are desired with added zeal and warmth to give new lease of life to deadening textile exports.
IGNORED CALL FOR LONG ANSWERED, BUT...
It cannot be propounded with certainty textile ministries in regional countries have contributed to ingredients textile exports have scaled up the ladder without making so much noise. A couple of years back when long call for a textile ministry was answered and till date only job they had for granting or getting granted one or the other packages, which, however, always proved insufficient to ensure an edge over regional competitors.
The federal Minister for textile Rana M. Farooq would be asked to address a seminar and will hold talks with garment exports of Sialkot. He will also be sharing government views on PRGMEA demand to establish Garment City, garments technical training institute and textile development centre in Sialkot.
The enthusiasm and love, with which garment manufactures and exporters have welcomed the minister showed that they had been looking the developments in Faisalabad and what was somehow running in Karachi. With new minister of textile possessing new perception and approach, the textile sector is likely to attain that past glory when some foreign manufactures would use Pak label on their products to make them like hot cakes. The proposals Sialkot enthusiasts have which they will place before the textile minister should not only be formally accepted, but the project are given shape and shown green flag.
The dedication, with which Sialkot has for long lived and known for sport wear and goods, people here will be known for garments city products. The similar garment projects for Karachi and Faisalabad have been in waiting list for bad export performance by existing textile and other export sector.
WAYS TO DETECT FRAUD BAFFLE DETECTORS:
There is a constitution, rules and laws in this country as elsewhere in the world. But to apply them some flaws are detected to reach the bottom. For an honest official there is no scope left by those departments, office or a person. Since the ways have so far been found in closing the files and let frauds go on and on, the country has reached, where rules should have not allowed.
The textile sector or any export sector with scope to hit the jackpot the promise officer made at the time of appointment is shaken. A very popular leader ones around 40 years back sent newsmen into burst of laughter when he assured them politicians don't have only requisite courage to refuse things when offered. This revelation proves that the riches have gone to individuals in Pakistan.
The way introduction of new agricultural tax on income has been proposed to mend the ever deteriorating condition of Pakistan, is a history. The opposition is stronger and another move in seemingly at stake. The implications may be besides the finance, but cotton ginners remained restive for days after authorities announced TCP was entering market but they remained under pressure for cotton rate sustained losses. Who lost and gained during the period is known to those who enjoyed or failed it but a principle suffered.
Sugar crushing comes in newspaper reports annually saying delay will occur until government stops release of sugar from its outlet or stop imports. The government has hardly been successful in helping the cane growers dues. Hundreds and thousand are made suffer due to load shedding without causing wrong to KESC or anybody. Those who cause it are known very much. But detectors of defaulters are simply baffled-simply-baffled -?
BEGGING BOWL A FASHION?
The time that has stuck like bones in throat will be out. But the way small and big nations are out calling for help from any quarter in a respectable shape to go for even a fashion. This country has been poor, created over 60 years back for the people will better their lot. Since then however, shape of the people, who were somewhat better before has worsened.
At one time the pleasant looking promise had come from blues that this country had finally broken the begging bowl. In keeping with the hackneyed tradition the taking over government felt it was surrounded by host of insurmountable problems. And the change over handed down the struggling people to aspiring parties for breaking a tradition to pick up the pieces and lead the fondly looking hitherto struggling people to a new road called progress and prosperity.
A lot of thinking and planning in order to gift some relief to expectants, received with, thanks coins with strings pressure of which shrieks being heart. The textile exporters hoping to make most from exports next months in latest chain former chairman of the Kati (Karachi Association of Trade and Industry) urged, like so many other, the president and prime minister to direct federal minister for finance to provide research and development (R&D) support to towel and other textile industries.
He also demanded reduction in mark up rates, which has under the heavy load of loans from big donors. As exporters from different sectors seek help where they fell they are stuck up Kati former chairman had asked for above two facilities to remove the blocks in the way of exports particularly because of knocking X'mas occasion. The APTMA has approached the government to get its units exempted from gas load shedding during winters.
The outside world must be laughing at the miseries Pakistanis are faced with despite government mercy to have provided with every potential that makes countries progressive and prosperous, they, sources reminded the outside people knowing this country's potential must have been wondering what make Pakistanis so humble to look for money and material from outside world?
POOR PAYING FOR PROFLIGACY OF RICH:
The daunting language used by Indian PM will not save poor from paying for the profligacy of the rich nations, but may serve as wake up call to stay out of their shrewdly woven traps.
Naturally star wars exercises, year after year with renewed efforts, usurped the resources and will to continue with producing most competitive garments and hosiery and bedwear. And the wars to humble powers could see eye to eye to powers who merely wanted the resources to produces poison, weapons and test their prowess to destroy men and cornfields.
Rightly so said Singh "we need a global safety net that the poor should not pay for profligacy of the rich and delinquency of a few." He was this eager to send a message of hope and confidence to Indian industry that it would use every fiscal, monetary, public investment and foreign exchange rate policy tool to tackle the crisis - what indeed restricted to offer hope and well being for the Indian Industry because his fine policies have nurtured nine pc GDP growth and despite worse looming large still hope to easy out with 8pc growth.
What the other most limping out of over 153 countries for who the alms giver group are not even talking big but utmost that can be termed as "lip service". The profligacy of rich and delinquency of a few has unfortunately has not spared them even. The begging bowls are afloat in lush fields and desert air for possible sovereign wealth and riches.
Most people know the stretched hands are not for begging but to make beggars weaker so that the humble remain humble. Not long back before a bear footed cycle rickshaw drivers could not explain in better way than to pointing at Red Fort of Mughal era flashing light said "sir let that go off" throwing a grim look at his torn shirt and bear foot peddling the cycle rickshaw these days.