KARACHI: Cotton productions drop alarmingly by 10 lac bales. Annual production of cotton is estimated to be 86 lac bales. The rate of cotton reached at Rs 9300 per maund which is highest in the season. Up till now agreements for import of 17 lac bales have been signed. Around 45 lac bales will be imported.
In the local cotton market during the last week the trading volume increased due to the increase in buying by the textile and spinning sector and due to increase in supply of Phutti. The rate of cotton increased by Rs. 200 per maund although the quality of Phutti is improving day by day due to which mills has increased the buying. The rate of good quality cotton has reached Rs 9300 which is highest in the season. The rate of cotton of Balochistan also reached at Rs 9500 to Rs 9700 which is at highest level. In the same way increasing trend was witnessed in the rate of Phutti.
The rate of cotton in Sindh as per quality is in between Rs 8200 to Rs 9100 per maund. The rate of Phutti is in between Rs 3800 to Rs 4300 per 40 Kg. The rate of Banola is in between Rs 1500 to Rs 1800 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9300 per maund while the rate of Phutti is in between RS 3800 to Rs 4600 per 40 Kg. The rate of Banola is in between Rs 1650 to Rs 1900. The rate of cotton in Balochistan is in between Rs 8800 to Rs 8900 while the rate of Phutti of good quality is in between RS 4400 to Rs 5200 per 40 Kg.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 200 per maund and closed it at Rs 9050 per maund.
The ginners had not started ginning because the rates of Phutti are not competitive. This year less number of ginning factories has started ginning as compared to last years season.
Pakistan Cotton Ginners Association has issued the statistics of cotton production till October 1, according to which 19 lac and seven thousand bales were produced in the country which was 10 lac twenty six thousand bales (34.98) less as compared to last year production of 29 lac and thirty three bales.
According to the experts decrease in cotton production is alarming. Due to the decrease in cotton production textile and spinning sectors are importing cotton from abroad in large quantity. According to information received up till now agreements for the import of 17 lac bales have been signed. It is estimated that this year 45 lac bales of cotton will be imported.
Federal Minister for National Food Security and Research (NFSR), Syed Fakhar Imam on Friday while chairing meeting on Cotton Crop Assessment Committee said that Pakistan's cotton sector would surely improve in coming years as effective measures are being taken. He was of the view that issues of domestic cotton production are seed quality, absence of new seed technology, heat waves and climate change, cotton leaf curl virus, pink bollworm and white fly.
He also said that there is 4% decline in cotton area, resultantly pest complex has changed. In case of cotton, loss is observed in Multan division. Comparatively Bahawalpur and DG Khan is doing better. Punjab assessed production target between 5.30mn bales. Sindh also mentioned that due to heavy rains cotton crop is facing lots of issues. Mirpur Khas and Sanghar have faced crop damage. Sindh gave target of 3mn bales. KPK gave target of 0.065mn bales and Balochistan gave target of 0.291mn bales. The total estimated production of the country will be 8.597mn bales.
Pakistan Meteorological Department (PMD) mentioned that for next 6 to 8 week there will be dry weather. FSC&RD mentioned that this year for cotton seed the target area for inspection is 365,000 acres and already inspected area is 147,000 acres. This year target expectation for cotton seed is 72,176 metric tonnes.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that mixed trend was seen in international cotton market. The rate of New York Cotton was reminded under the influence of fluctuation in the rate of dollar. The fluctuation was observed in the Rate of Promise (Waday Ka Bhao). The reason behind fluctuation is America and China trade conflict.
In the weekly USDA export report there is a slight decrease was witnessed in the export as compared to last week. The rate of cotton remained stable in India. The Cotton Corporation of India has started devising a strategy for the buying of new cotton crop from October 1. CCI is selling cotton to Bangladesh and local mills which was purchased by Corporation last year. India's cotton-growing areas, especially Gujarat, are expected to have ample cotton sowing this year. There was no business activity in China due to holidays from October 1st to October 8. It is welcoming that China had imported low quality yarn from Pakistan.
Newly elected chairman of Pakistan Cotton Ginners Association Dr Jassomal Limani immediately after assuming the charge has started its efforts to increase the production of cotton. "Increasing the size of cotton and better quality is our priority," he said in a statement.
Meanwhile, a delegation of Pakistan Cotton Ginners Association under the leader ship of the chairman PCGA, Dr Jassomal called on Governor Punjab Chaudhry Muhammad Sarwar and discussed with him the issues faced by cotton ginners. He discussed him with the factors behind low cotton production due to low quality of seeds and torrential rains.
PCGA delegation also called on director general agriculture Anjum Ali and additional secretary agriculture Rao Latif and discussed with him the issue of substandard pesticides and seeds.
Moreover, group leader All Pakistan Textile Mills Association Goher Ejaz while addressing the 64th Annual General Meeting stressed upon the government to implement the textile policy in letter and spirit. He said if the government fully implement the textile policy as a result of which investment will come in this sector and textile exports may touch $30 billion exports in next five years.
In the annual general elections of Karachi Cotton Association for the year 2020-21 Atif Dada was elected as Chairman, Hamayun Zafar as senior vice chairman and Rizwan Iqbal as vice chairman unopposed.
Copyright Business Recorder, 2020