KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Monday increased the spot rate by RS 100 per maund and closed it at Rs 13300 per maund.

The Spot Rate Committee of the Karachi Cotton Association on Monday increased the spot rate by RS 100 per maund and closed it at Rs 13300 per maund. The rate of Polyester Fiber was increased by Rs 3 per Kg and was available at Rs 225 per kg.

The local cotton market on Monday remained bullish and trading volume remained a little bit low. Cotton Analyst Naseem Usman told Business Recorder that positive aspects of news of ending of trade war between China and America beginning to be seen in cotton markets of the world including Pakistan.

The rate of cotton in Sindh is in between Rs 12000 to Rs 13500 per maund and the rate of cotton in Punjab is in between Rs 13300 to Rs 13700 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 5400 to Rs 6000 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5400 to Rs 6100 per 40 kg. The rate of Banola in Sindh is in between Rs 1700 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1850 per maund. The rate of cotton in Balochistan is in between Rs 13400-13700 per maund. The rate of Phutti in Balochistan is Rs 6200- 6700 per maund.

5000 bales of Khair Pur were sold in between Rs 13250 to Rs 13350 per maund, 2000 bales of Rohri were sold at Rs 13300 to Rs 13350 per maund, 1000 bales of Saleh Pat were sold at Rs 13000 to Rs 13400 per maund, 600 bales of Sarhad were sold at Rs 13500 to Rs 13550 per maund, 400 bales of Ghotki were sold at Rs 13500 per maund, 800 bales of Tando Adam were sold at Rs 12400 to Rs 12800 per maund, 1000 bales of Shahdad Pur were sold at Rs 12400 to Rs 13000 per maund, 800 bales of Nawab Shah were sold at Rs 12900 to Rs 13000 per maund, 800 bales of Sanghar were sold at Rs 12250 to Rs 12600 per maund, 600 bales of Rahim Yar Khan, 200 bales of Sadiqabad, 200 bales of Liaquatabad were sold at Rs 13500 per maund, 800 bales of Layyah were sold at Rs 13400 to Rs 13500 per maund, 1200 bales of Shujabad, 200 bales of Haroonabad were sold at Rs 13500 per maund, 2400 bales of Yazman Mandi were sold at Rs 13450 to Rs 13500 per maund, 200 bales of Noor Pur Noranga were sold at Rs 13450 per maund, 200 bales of Chistian, 400 bales of Kichiwala were sold at Rs 13400 per maund, 200 bales of Vehari were sold at Rs 13300 per maund and 200 bales of Muhammad Pur Dewan were sold at Rs 13200 per maund.

All Pakistan Textile Mills Association (APTMA) has strongly opposed the move of imposing Regulatory Duty on the export of cotton yarn. According to the association, it would not only distort the momentum gained in exports after decades but will disturb the continuity of governmental policies for export-led growth.

Abdul Rahim Nasir (Chairman APTMA) who kept silence on Commerce Ministry's idea of RD on export of cotton yarn, has now said that a certain group with vested interests are busy making unnecessary hue and cry for levying RD on the export of cotton yarn on false pretexts with the intent to agitate the historic high trend of textile exports, roll back investment of more than $ 4 billion and to deprive the country of projected additional 500,000 jobs.

In a statement, he emphasized that cotton yarn is sufficiently available in the country for consumption in the value-added sector for export purposes which is evident from the fact that cotton yarn export has declined in past years, resultantly textiles have achieved historic high exports of 15.4 billion dollars.

The textile exports have increased by 23% in FY21 while registering 29% growth in the first two months of the current fiscal year. In August 2021, textile exports have registered a growth of 45% over the same period last year.

Instead of considering any idea to impose RD on cotton yarn export, there is an urgent need to ensure the supply of basic raw materials (cotton and MMF) at competitive rates. Domestic production of cotton yarn is about 3.5 million tons and local consumption is 90% for value-added products while only 10% is being exported.

One explanation making rounds in cotton circles indicates that arrivals may witness an early peak than in the past. Why? Historically, cotton arrivals in Sindh peak by end of September, while season's highest arrivals in Punjab are witnessed by October end. This has been in line with the harvest patterns in various regions, as harvest initially begins in South and then continues northwards.

Copyright Business Recorder, 2021