KARACHI: The upward trend was seen in the cotton market on Tuesday morning but in the evening downward trend was witnessed under the influence of downward trend in the rate of cotton in New York Cotton Market due to COVID 19.
Prime Minister Imran Khan has approved the Textile Policy 2020-2025 According to the Textile Division of Ministry of Commerce Prime Minister Imran Khan has directed to submit the textile policy to the Economic Co-ordination Committee for approval.
The policy will be sent to the federal cabinet for final approval Commerce Ministry officials said. The policy proposes to increase textile exports to 20.8 billion by 2025 According to the document it is proposed to reduce tariffs to increase electricity and gas exports to textile exports increase financing and access to new markets and reduce power supply to the textile sector from 9 cents to 7.5 cents.
Taking to its Twitter handle, All Pakistan Textile Mills Association (APTMA) acknowledged Prime Minister Imran Khan and congratulated Finance Advisor, Dr. Abdul Hafeez Shaikh and Advisor for Commerce & Investment, Mr. Abdul Razak Dawood on approval of the 5-year textile policy. The association also thanked the State Bank of Pakistan (SBP) for its support i.e. TERF, Refinancing Scheme for Wages, etc. during the pandemic.
'Govt has supported Export-led growth through a regionally competitive energy tariff of $6.5 per mmBtu for gas and 7.5 cents d/kwh for electricity over the last 18 months', the association said.
Cotton Analyst Naseem Usman told that Karachi Cotton Association (KCA) is extremely perturbed over the drastic decline in cotton production from 15.0 million bales to 6.00 million bales, as reported, in the current cotton season 2020-21.
The KCA understands that decline in cotton production again in cotton season 2020-21 is mainly due to (i) reduction in yield per acre (ii) cultivation of sugarcane in the areas earmarked for cotton cultivation (iii) supply of uncertified Cotton Seed & Pesticides etc. Hence, there is a considerable gap in cotton production and local mills consumption.
The local textile industry is, therefore, compelled to import raw cotton from abroad to meet its requirement of basic/primary raw material and to ensure its contribution towards achieving the target of exports fixed by the Government through exports of valued added products as well as earning much needed foreign exchange for the country.
The KCA, therefore, urges upon the Government to declare emergency and evolve necessary Plan of Action on war footing basis to increase cotton production in the coming years to meet the rising requirements of the local textile industry and leave adequate surplus for export in order to ensure the presence of Pakistan Cotton in the international market to earn valuable foreign exchange for the country through export of cotton and its value added products.
Cotton is seen to be the backbone of the exporting and related production industries like a textile in Pakistan. Pakistan stood at 4th position in producing cotton in 2012-13 with some 11 million bales but before that, the period in between 1980-90 is considered as the golden period for Pakistan regarding cotton production in which rapid growth was seen. Earlier in 2014-15 the production increased 11 per cent and holds the record of 15 million bales.
The Better Cotton Initiative (BCI) says it provided training on more sustainable farming practices to more than 2.3 million cotton farmers in 23 countries during the 2018/19 cotton season. The figures are revealed in the BCI's annual Farmer Results report which includes data on a range of social, environmental and economic indicators over the 2018/19 cotton season.
Former President ICCI Shahid Rasheed Butt has said promotion of sugar mills mafia should be stopped immediately as this sector is damaging the cotton economy for personal gains.
In he said that illegal extension in sugar mills should be checked as it is helping the sugarcane crop encroach upon the best cotton sowing area and almost a million hectares of the cotton belt is now used for sowing of sugarcane.
Shahid Rasheed said that the tendency is very damaging for the country as the cotton crop is central to the economy and the largest industrial sector of textiles providing sixty percent of foreign exchange and jobs to millions.
Naseem also told that declining cotton production in Multan is affecting women cotton pickers daily income. About 20 million people directly or indirectly linked to the cotton industry, from cultivation to textile products and its exports, have also been affected by the crisis. Cotton often touted as "white gold" has a major share in the country's economy.
Punjab government has decided to collaborate with agriculture researchers from China and the US to develop new seeds for cotton and other crops besides strengthening legislation to curb substandard seeds.
The decision was made in a three-hour meeting jointly chaired by Governor Chaudhry Muhammad Sarwar and Chief Minister Sardar Usman Buzdar at Governor House on Thursday. Federal Minister for Food Fakhr Imam, provincial ministers, Punjab chief secretary and representatives of the private sector also attended the meeting.
The participants discussed problems related to cotton seeds at length and proposed strict punishment to those who produced substandard seeds. It was decided that noted researchers from the US and China would be enlisted for collaboration with local experts to improve research quality.
Mean while Pakistan Cotton Ginners Association and Seed Association of Pakistan has shown their concern for not inviting them in the meeting at governor house Lahore which was especially called to discuss the factors behind decreasing cotton production and for ensuring supply of quality seeds.
Naseem said All Pakistan Textile Mills Association should pressurize government that it should notify a National Cotton Board in order to seriously and properly address all the issues related to cotton.
Naseem told that 2000 bales of Khair Pur were sold at Rs 8800 to Rs 8900 per maund, 1000 bales of Rohi were sold at Rs 8900 to Rs 9200 per maund, 800 bales of Saleh Pat (seed) were sold at Rs 9500 per maund, 400 bales of Ghotki were sold at Rs 9200 per maund, 200 bales of Karor Lal Ehsan were sold at Rs 9000 per maund, 400 bales of Muzaffar Garh were sold at Rs 9100 per maund, 1200 bales of Layyah were sold at Rs 9100 to Rs 9200 per maund, 200 bales of Shadan Lund were sold at Rs 9200 per maund, 200 bales of Bahawal Pur, 400 bales of Khanewal, 400 bales of Lodhran (BCI) were sold at Rs 9500 per maund, 2600 bales of Yazman Mandi were were sold at Rs 9500 to Rs 9600 per maund, 400 bales of Bahawal Nagar, 400 bales of Dharan Wala, 400 bales of Fort Abbas, 1200 bales of Haroonabad, 600 bales of Hasil Pur were sold at Rs 9600 per maund and 200 bales of Bago Bahar were sold at Rs 9700 per maund.
He told that rate of cotton in Sindh was in between Rs 8800 to Rs 9300 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9700 per maund. He also told that Phutti of Sindh was sold in between Rs 3500 to Rs 4500 per 40 kg. The rate of Phutti in Punjab is in between Rs 3600 to Rs 5000 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1650 to Rs 1800 while the price of Banola in Punjab was in between Rs 1700 to Rs 1900. The rate of cotton in Balochistan is in between Rs 8600 to Rs 9000 while the rate of Phutti is in between Rs 3800 to Rs 4900. The Spot Rate remained unchanged at Rs 9450 per maund. The Polyester Fiber was available at Rs 158 per Kg.
Copyright Business Recorder, 2020