KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Wednesday increased the spot rate by Rs 50 per maund and closed it at Rs 8800 per maund.
The local cotton market remained stable on Wednesday. Market sources said that after the release of the report of Pakistan Cotton Ginners Association which projects a decrease of drastic reduction of 8 lac cotton bales.
Cotton Analyst Naseem Usman told that the cotton crop has disappointed – yet again. A phenomenon reminiscent of the outgoing decade, which saw the sweet lure of sugarcane almost singlehandedly shave off a fifth of cotton’s cultivated area, translating into a 29% drop in yield. But volumes – and a palpable substitution – do not tell the full story. They do not even provide an unequivocal account of cotton’s relegation in the agronomic pecking order. The substitution and dwindling yield are far from an inexplicable trajectory, however, and represent unmistakably inevitable developments as structural characteristics of cotton cultivation in the country have gradually but definitely facilitated its waning economic appeal for farmers.
The low quality of cotton yield in Pakistan was an impending feature of the textile value-chain even before the crop substitution to sugarcane began. Pakistan, in fact, suffers from one of the worst contamination rates in the world with its rate more than seven times the international standard. One of the primary reasons for this is the out-dated and ineffective picking methods that structurally induct high trash content into the value-chain and directly lead to amplified ginning losses and lower quality of yarn.
Another reason for cotton’s dwindling quality output is the below-par pace of seed research.
Naseem Usman told that according to the statistics released by Pakistan Cotton Ginners Association till September 15, 2020 10 lac 35 thousand bales were produced in the country which is 44.12 % less as compared to the last years cotton production of 18 lac 52 thousand bales.
He also told that textile imports will further increase as a result of which country’s economy will further deteriorate.
According to the first estimate released by Agriculture Crop Reporting Service, the sowing of cultivated area during 2020-21 season witnessed a decline of 12% owing to major reason behind this was non availability of good quality of seeds. The reason monsoon spell had caused huge loss in Sindh especially in the districts of Sanghar, Mirpurkhas, Umer Kot, Badin, Tando Allah Yar, Tando Muhammad Khan, Hyderabad and Dadu.
The report indicated that 25% cotton crop in Sindh has been damaged quality and supply of seed cotton was affected. Picking was also affected due to rains. Similarly, the rains in cotton belt of Punjab have caused loss to cotton crop. The high moisture makes the cotton crop susceptible to Pink boll worm attacks. The pink boll worm attacks can damage around 20 to 30 percent of the crop and affect the lint quality. The farmers are advised to immediately drain out water from their fields.
He also told that this year due to torrential rains, unsuitable weather conditions, corona lockdown and especially due to the substandard seeds cotton production was badly effected.
Amid coronavirus cases increasing in competitor economies including India and Bangladesh, garment orders are rapidly shifting to Pakistan.
Moreover, the Economic Coordination Committee (ECC) on Wednesday has approved the proposal for the removal of duties on the selected segments of the textile sector under the National Tariff Policy 2019-24.
ECC, under the chairmanship of Advisor to Finance Dr. Abdul Hafeez Shaikh, approved the proposal for removal of Additional Customs Duty (ACD) and Regulatory Duty (RD) on selected HS Codes of the textile sector, including synthetic fibers, wool, and vegetable-based fibers.
“This is in pursuance of our policy for cost reduction by reducing all duties, on raw materials as well as intermediaries, and an essential part of promoting industrialization under ‘Make in Pakistan’ and ensuring export-led growth,” said Advisor to PM on Trade Abdul Razak Dawood. The advisor informed that notification will be issued after ratification by the Cabinet.
“This decision will enable our exporters to widen their product range, capture more of the synthetic market and improve our competitiveness,” he said
He also told that 1000 bales of Shahdadpur Rs 8250 to Rs 8350, 2400 bales of Tando Adam were sold at Rs 8250 to Rs 8500, 800 bales of Sanghar were sold at Rs 8150 to Rs 8300, 800 bales of Saleh Pat were sold at Rs 8700 to Rs 8800, 100 bales of Khairpur were sold at Rs 8700 to Rs 8800, 400 bales of Chistian were sold at Rs 8825 to Rs 9000, 200 bales of Faqeerwali were sold at Rs 9000, 2200 bales of Haroonabad were sold at Rs 8950 to Rs 9000, 200 bales of Bahwal Nagar were sold at Rs 9000, 400 bales of Fort Abbas were sold at Rs 9000, 200 bales of Mian Channu were sold at Rs 8950, 400 bales of Burewala were sold at Rs 8900, 600 bales of Yazman Mandi were sold at Rs 8900, 200 bales of Chichawatni were sold at Rs 8875, 200 bales of Bahawalpur were sold at Rs 8850, 200 bales of Kot Adu were sold at Rs 8850, 200 bales of Khairpur Thaniwal were sold at Rs 8800 and 400 bales of Hasilpur were sold at Rs 8825.
He told that rate of cotton in Sindh was in between Rs 8300 to Rs 8700. The rate of cotton in Punjab is in between Rs 8800 to Rs 9050. He also told that Phutti of Sindh was sold in between Rs 3400 to Rs 4000 per 40 kg. The rate of Phutti in Punjab is in between Rs 3400 to Rs 4400 per 40 kg.
The rate of Banola in Sindh was in between Rs 1550 to Rs 1700 while the price of Banola in Punjab was in between Rs 1700 to Rs 1800. The rate of cotton in Balochistan is in between Rs 8600 to Rs 8800 while the rate of Phutti is in between Rs 4400 to Rs 5000.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 50 per maund and closed it at Rs 8800 per maund. The polyester fiber was available at Rs 153 per kg.
Copyright Business Recorder, 2020