KARACHI: The local cotton market remained stable on Saturday. Cotton Analyst Naseem Usman told that market volume remained low. Naseem Usman told that in order to facilitate exporters, the Ministry of Commerce has released Rs 1.78 billion for the textile sector under the drawback of local taxes and levy (DLTL) refunds.
"I am pleased to share that the Ministry of Commerce has released Rs 1.78 billion for Textiles Sector under DLTL scheme. I hope this will resolve the liquidity issues of our exporters and enable them to enhance exports," said Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood in a tweet post on Friday.
The advisor informed that the DLTL for the non-textile sector will also be released shortly. Meanwhile, the Trump administration has imposed a ban on imports of cotton products manufactured by a Chinese state-controlled firm because of its reliance on the forced labor of detained ethnic minorities.
The Customs and Border Protection agency issued an order Wednesday ending shipments from the quasi-military Xinjiang Protection and Construction Corps. The order also requires any U.S. company seeking to import cotton products from China to prove they did not come from the XPCC or were included in the supply chain.
Naseem also told that the big reason for the rush is the Cotton Corporation of India (CCI) procuring a good quantity from the market. As CCI buys at MSP, farmers are eager to sell to it. Cotton prices in India have dropped by Rs 200 per candy (356 kg each) as arrivals begun flooding the markets and spinning mills cut down purchases.
While cotton prices rose more than 1% on Friday as investors banked on hopes for more US economic stimulus and its likely fillip to demand for the natural fibre, while a sagging dollar added to the upbeat mood.
The cotton contract for March was up 0.96 cent, or 1.4%, at 72.07 cents per lb by 11:50 a.m. EST (1650 GMT). However, the contract is down about 1.6% so far this week, which would be its first weekly decline in five weeks.
Naseem told that seed cotton (Phutti) equivalent to over 4.6 million or exactly 4,648,092 bales have reached ginning factories across the country till Dec 1, 2020, registering a 37.59 per cent shortfall compared to corresponding period of last year when arrivals were recorded well over seven million bales.
According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released to media on Thursday, over 4.2 million or 4,289,988 bales have undergone the ginning process i.e converted into bales. Cotton arrivals in Punjab were recorded at 2.6 million or 2,634,487 bales while Sindh generated just over 2 million or 2,013,605 bales.
Naseem told that 1200 bales of Dherki were sold at Rs 9550 per maund, 400 bales of Saleh Pat were sold at Rs 9175, 200 bales of Garhi Goth, 400 bales of Rahim Yar Khan were sold at Rs 9600, 800 bales of Haroonabad were sold at Rs 9290 to Rs 9515, 800 bales of Mian Wali were sold at Rs 9400 to Rs 9500, 1000 bales of Yazman Mandi were sold at Rs 9350 to Rs 9375 and 800 bales of Faqeer Wali were sold at Rs 9325.
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 was available at Rs 162 per Kg.
Copyright Business Recorder, 2020