Cotton trading got a boost as ginners' meeting with the PTC was stated to be successful. Following this favourable decision, buying was up, depending on the value of dollar. Spot rate was down to Rs 2850.
WORLD SCENARIO:
New York cotton futures on Monday showed firm trend. On Tuesday the futures depicted mixed trend, as March was down 0.02 cent to 44.14 cents and May rose by 0.28 cent to 44.89 cents a pound. On Wednesday, cotton futures depicted strength on investor short covering. The players said that once the technically inspired buying exhausted, prices would come off. Dollar helped the fibre by losing value.
LOCAL TRADING:
Cotton trade registered quick response to ginners' meeting with Trading Corporation of Pakistan (TCP) Chairman and spot rate was down by Rs 50 to Rs 2850 while modest transactions of nearly 6000 bales were observed at Rs 2675 to Rs 2950. However, buyers said their immediate concerns were deteriorating world economic situation and uncertain political conditions.
The ginners, who were threatening to go on strike if their demands were not met, seemed pretty satisfied after talks with TCP boss. Special mention was made about the Corporation's buying operation, while some other issues, like cotton cess, were also bothering them. They said they were not paying this cess, as it was part of their grievances.
On Tuesday, the market saw signs of better trading, as nearly 12000 bales were lifted due to rise in dollar value, which cotton consumers are always ready to welcome. The spot rate was unchanged and phutti rate both in Punjab and Sindh rose to Rs 1450 and Rs 1550. Ginners seemed unmindful of prices as they were able of dispose of nearly half of their old stock ahead of coming PCGA statement of arrivals on around January 1, 2009.
On Wednesday, there was slight improvement n cotton buying, and the market depicted firm trend. However, softness in dollar value restrained cotton buyers to a great extent. World recession obsession also made cotton buyers and textile exporters too cautious. The spot rate was unchanged at Rs 2850, but seed-cotton showed firmer trend in Punjab and Sindh at Rs 1450 to Rs 1550. Exporters are also looking for govt moves towards exports, which have not been any good yet.
On Thursday, thin business was seen due to rains in the city.
On Friday, following deals were reported: 400 bales from Rajanpur at Rs 2900, 600 bales from Hasilpur at Rs 2800, 400 bales from Haroonabad at Rs 2800, 500 bales from Fort Abbas at Rs 2800, 400 bales from Rahim Yar Khan at Rs 2900, and 600 bales from Layyah at Rs 2725.
On Saturday, following deals were reported: 400 bales from Dadu at Rs 2765, 400 bales from Rasulabad at Rs 2750, 200 bales from Pehtro at Rs 2850, and 400 bales from Rahim Yar Khan at Rs 2900.
GWADAR PORT BE PUT TO GOOD USE:
The Gwadar port took decades to complete and when it is ready its full utility awaits to be understood. Other ports, KPT and Port Qasim, are fully operational but they are often over-utilised, and need renovation and repairs and maintenance as well. As an alternative, Gwadar should be promoted for contribution to economy as early as possible. For certain utility, Gwadar port is said to have provision, which the older ports do not have.
PENDING GOOD NEWS AT LAST:
The ginners have been quite active lately, but whether they are getting their due is debatable. A number of issues have been boggling their minds, and never before their resorting to strike was heard of. The strike was really was not done, perhaps. The growers, however, remain under pressure for one reason or the other. The seed-cotton supplies report comes in the wake of possibly bumper production which the ginners, according to growers who were in Karachi, had sale problem and often had to wait for money.
Thank God, some agreement has been mentioned following a meeting with PCGA and PTC chairman on issues relating to procurement operation during the on going season. It was kept sort of secret whether the rate at which procurement will be made was also agreed. However, the word "immediate" gave ample hint so that a couple of days after, the ginners would come out with a statement how satisfied they were. The call for strike is not any more needed.
Very tight day are ahead, which is not unknown, and the need is that all should shed past callousness, as in the process textile exports suffer. The newspapers headlines even at this time when none seems to be walking on roads with normal breath. The additional tons of loans have upto the satisfaction of authorities come but the past has not seen resources spent on priority needs.
TOUGH 2009 LOOMS BUT GOVT TUTELAGE NEEDED AS EVER:
The worst ever holocaust today has been accepted by even the most optimistic economists and experts, and ways to scale clear off it are being tracked. The powers that prevail in policy making and executing are feeling guilty and gathering resources to help trade and businesses in trouble.
When smooth time for all had helped the govt, very much like the past, all and sundry had in chorus asked the limping Pak govt to do everything, from infrastructural work to power and gas, and ensure cheap raw materials and in case of imports of cotton to ensure easier availability of everything to enable textile (and other industry) product to have an edge over the rivals. Whatever is penned here had direct link with exports, businesses and plight of economy, and govt.
The X'mas is just ahead and all who can--govt plus the exporters--should exploit the occasion so that maximum recovery could come in the wake against the losses on account of high cost of doing business. The govt has been hand-tight, in Pak case, always because Pakistan gives to its people whatever it has but in return it gets resolve on Independence days 23rd March and other very important days to build Pakistan strong. But over a dozen succeeding govts blame the outgoing for the miseries, while the country continued to weaken in the process. Often whispers are heard that Pakistanis are hoping that the multinationals and investors will invest part of their earning, but do the Pakistanis themselves do? ar call far.
TEXTILE, CLOTHING DIVISION:
Creating ministries, divisions and curtain departments give idea that efficient result is aimed at. In a way, it is certainly more frugal to have different umbrella for particular working that jumble up in one raw hand. For 60 years the textile ministries, despite calls for following India and Bangladesh where ministries were working. For reasons known to authorities at the helm of affairs, textile sector was in one or the other ministries.
The result was that with God's mercy textile exports earned highest of all sectors, but that remained a point of satisfaction. Exports not only remained stuck but the sector all through lacked investment from the annual earnings. Instead exporters of particularly yarn and textiles, pestered govt year after year for money on one or the other ground, but was never checked whether or not the demand met by govt was used to improve not only the quality and forex earning.
However, the authorities have thought out for the better to make textile and clothing division functional. The Director General Textile and Clothing is in the process rightly looking to share with the exporters to promote understanding and particularly to resolve all outstanding problems which the textile sector has been facing since long. At a meeting, talking with member of Pakistan Hosiery Manufacturers Association (PHMA) he pointed out that several unresolved issues had been raised during the talks but strangely enough he added that exporters had never asked for TDAP help.
These days textile exporters are finding in teething troubles owing to various factors causing high cost of doing business, the soft corner the TDAP chief seemed to have for the textile exporters and obviously so, for ensuring depleting exports to strengthen the exporters of the country and country's economy.