KARACHI: The local cotton market remained stable on Tuesday. Cotton Analyst Naseem Usman told that market volume remained low. Naseem also told that ICE cotton futures fell 1% on Monday on worries over global demand for the natural fibre amid a surge in coronavirus cases.
The cotton contract for March was down 0.74 cent, or 1%, at 72.50 cents per lb by 11:38 a.m. EST (1638 GMT), after rising more than 1% in the previous session. It traded within a range of 72.41 and 73.48 cents per lb.
"We are seeing a little bit of selling pressure following Friday's positive session. At the same time, there is may be not as much demand at the moment to prop up the prices," said Bailey Thomen, cotton risk management associate with StoneX Group.
Meanwhile, Prime Minister Imran Khan on Monday gave in principle approval for establishment of Exports Development Board (EDB) for promotion of the country's exports. The board to be headed by the prime minister himself would have representation from all the stakeholders of export sector.
The board meeting would be held every month, wherein, exporters would be invited to resolve their problems. The announcement of board setup came following a meeting of the adviser on commerce with the prime minister.
All Pakistan Textile Processing Mills Association, (APTPMA) thanked the PM Imran Khan for approving a progressive and innovative textile policy 2020-25 and congratulated Advisor for Commerce & Investment Abdul Razak Dawood and Finance Adviser Dr Abdul Hafeez Sheikh on approval of the five year textile policy despite enormous odds, Covid-19 pandemic, and resource constraint, which is a healthy augury for textile industry of Pakistan and said it is a right step in the right direction.
Prime Minister Imran Khan also sought proposals from industrialists on corporate farming to increase productivity of agriculture sector. The prime minister was talking to a delegation of leading industrialists who called on him at the Prime Minister's Office.
The prime minister, while talking to the delegation, said that proposals suggested by industrialists are being incorporated by the government in decision-making as prosperity of the country is linked with the development of the industrial sector.
The members of delegation said foreign exchange reserves have increased. According to them, an increase in exports and acceleration in construction activities despite the challenge of coronavirus had positive impacts on the economy. They acknowledged that the current account deficit has become positive due to the government's efforts.
Naseem also told that the Cabinet Committee on Energy (CCoE) is said to have approved supply of electricity to textile sector at cents 7.5/kWh for two months from December 1, 2020 subject to closure of captive power plants.
The decision was taken during discussion, on natural gas load management during 2020-21. In December 2020, total consumption will be 2,126 MMCFD whereas shortfall will be around 61 MMCFD; in January 2021, consumption will be 2,321 MMCFD and expected shortfall will be 250 MMCFD. The CNG sector and captive power plants will face complete closure during next two months.
Petroleum Division informed the CCoE that recently the ECC has approved recovery of RLNG diversion cost, which is now with OGRA for implementation, expecting that with the implementation of approved mechanism, the recovery of accumulated amount/diversion cost will commence.
Naseem told that 400 bales of Dherki were sold at Rs 9300 per maund, 1000 bales of Ghotki were sold at Rs 9200, 200 bales of Shahdadpur were sold at Rs 8150, 400 bales of Saleh Pat were sold at Rs 9100, 1000 bales of Rohri were sold at Rs 8600 to Rs 9000, 200 bales of Dharan Wala were sold at Rs 9540, 400 bales of Fort Abbas, 400 bales of Marrot were sold at Rs 9525, 200 bales of Ahmedpur East were sold at Rs 9500, 1200 bales of Haroonabad were sold at Rs 9350 to Rs 9500, 400 bales of Donga Bonga were sold at Rs 9450 to Rs 9500, 400 bales of Faqeerwali, 400 bales of Yazman Mandi were sold at Rs 9450.
He told that rate of cotton in Sindh was in between Rs 8600 to Rs 9500 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9600 per maund. He also told that Phutti of Sindh was sold in between Rs 3200 to Rs 4800 per 40 Kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 5100 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1300 to Rs 1700 while the price of Banola in Punjab was in between Rs 1650 to Rs 2000. The rate of cotton in Balochistan is in between Rs 8600 to Rs 9200 while the rate of Phutti is in between Rs 4200 to Rs 5000. The Spot Rate remained unchanged at Rs 9450 per maund. The Polyester Fiber rate was increased by Rs 2 per kg and was available at Rs 162 per Kg.
Copyright Business Recorder, 2020