KARACHI: The rate of cotton remained stable during last week. Fluctuation was seen in international cotton market. The government has set a target of production of 11.034 million bales of cotton for the next season. It is expected that cotton crop may be affected due to water shortage. There was some recession in markets related to cotton, cotton yarn and textile products.
In the local cotton market during the last week the rate of cotton remained stable. Very few textile mills were involved in buying. The stock of cotton is almost over with ginners. An international organisation that is involved in selling of cotton also ran short of stock. Hence it could be said that stock of cotton in the country is almost over. Though some ginners had still limited stock of cotton of low quantity but they were demanding high rates.
Generally, there was almost no business activity in the country due to prevailing political uncertainty. The trader community is not showing any interest in transactions because of the uncertainty. Moreover, there is a financial crunch in the market. Ramadan has already started. Usually there is hustle and bustle in the market during these days but presently the market is lacklustre. There is uncertainty in the market also due to high rate of inflation.
In the local cotton market the stock of cotton is almost over but a bullish trend prevails in the market, especially there is a fluctuation of three to four Cents in the rate of future trading of New York Cotton on daily basis. News regarding Russia- Ukraine war also affects the market to some extent.
Due to local political uncertainty there is also an uncertainty in the cotton and yarn markets of the country. There is very cautious buying while the situation of payments in the market is worse.
Farmers and organisations related to cotton are very active before the start of new season. Seminar and workshops are held on daily basis. Prime Minster Imran Khan had established Pakistan Cotton Authority in order to increase production of cotton in the country. Vice President Pakistan Central Cotton Committee briefed about the main characteristics of the authority.
It is pertinent to mention here that it is expected that next year the production of cotton will increase but according to the information received from the lower areas of Sindh it is estimated that sixty percent of the cotton production may be affected due to acute water shortage.
In this situation, it is suggested that concerned departments should take immediate action; otherwise, cotton production will be severely affected. According to the sources in these areas wheat crop was also affected due to water shortage. It is demanded that steps should be taken to end water crisis in the cotton growing areas. Moreover, availability of DAP and energy should be ensured on suitable rates. According to the forecast of the metrological department this year there will be extremely hot weather, as well as, a longer rainy season
The rate of quality cotton of Sindh and Punjab which is available in limited amount is in between Rs 18,000 to Rs 21000 per maund. There is an increasing trend in the rate of Banola, Banola Khal and oil. The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 500 and closed it at Rs 20,500 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that a bullish trend prevails in international cotton market. Fluctuation of three to four cents was observed in the rate of Future Trading of New York Cotton. According to the weekly export report of USDA two lac thirty four thousand bales were sold which is twenty four percent less as compared to the sales of last week. China was on number one buyer with one lac seventy seven thousand bales; Vietnam was on number two with more than twenty thousand bales while Turkey was on number three with more than thirteen thousand bales.
The Federal Committee on Agriculture (FCA) on Thursday fixed the cotton production target at 11 million bales from cultivation over an area of over 3.1m hectares of land.
The committee meeting chaired by Minister for National Food Security and Research Syed Fakhar Imam set production targets for important Kharif crops in 2022-23 and expressed satisfaction over the availability of inputs particularly fertilisers and irrigation water. It noted that the production of wheat during the outgoing Rabi season recorded a decrease of 2.5 per cent over the last season.
The committee was informed that 65 per cent of cotton was grown in Punjab while the rest was grown in Sindh. Nearly 26pc of farmers grow cotton, and over 15pc of the total cultivated area is devoted to this crop. A negligible area comes under the cotton crop in Khyber Pakhtunkhwa and Balochistan.
The committee fixed 8.6m tonnes production target for rice from an area of 3.1m hectares. Pakistan harvested record rice production of 8.9m tonnes during the last Kharif season, up from 8.4m tonnes the prior year. Fertiliser subsidy scheme has contributed to higher yields
Pakistan is the 10th largest rice producer and the country’s exports make up more than 8pc of the world’s total rice trade.
The target for sugarcane, the third-largest Kharif crop, was set at 78.6m tonnes over an area of 1.2m hectares for the season of 2022-23. Last year, sugarcane production increased to 75.9m tonnes, which was higher than 66.8m tonnes from the previous year.
Despite an increase in sugarcane production, the country witnessed instability in the sweetener’s availability for end-users amid high prices.
While reviewing the performance of the Rabi crops for 2021-22, the committee observed that the gram production for 2021-22 has been estimated at 354.7 thousand tonnes from an area of 866.6 thousand hectares; the increase in production is 51.6pc over the last year.
The FCA was informed that the potato production for 2021-22 has been estimated at 7.74m tonnes from an area of 0.3m hectares; the increase in production is 34.8pc over the last year.
The committee also discussed the production achievements of other essential crops like lentil, onion and tomato.
Regarding the availability of water for the Kharif season, the committee was informed that water availability in canal-heads will remain 65.84 million acres feet (MAF) as against last year which was 65.08 MAF. Presently, all the provinces are getting satisfactory water supplies.
Copyright Business Recorder, 2022