KARACHI: The local market saw a significant decline in the prices of cotton during previous week. Spot rate was decreased by Rs 600 per maund. However, increase was witnessed in the trading volume.
Quality of cotton crop has been affected due to rains in Sindh; however, cotton sowing has already been completed.
However, All Pakistan Textile Mills Association (APTMA) has said that the textile sector is facing a severe crisis. The association warned that if the government did not restore the subsidy on gas and electricity from July, they will hand over the keys of their units to the finance ministry.
In the domestic cotton market, the price of cotton showed a bearish trend during the last week as spinning mills showed interest in buying quality cotton while ginners also showed interest in selling cotton due to which business volume increased.
However, the price of cotton fluctuated due to rains. The price of rain-fed cotton is relatively low, while the price of good quality is 200 to 300 rupees higher.
Separately, the crisis of the textile sector has intensified, as the government has neglected the textile and ginning sector in the federal budget, due to which there is a huge disappointment in these sectors. Demand and prices of cotton yarn are sluggish and there is a severe financial crisis in the market.
APTMA has warned the government through print and electronic media that the problems of the textile sector, especially the energy and gas issues, should be solved immediately. The association warned that if the same situation continues it will be difficult for them to run their factories.
However, Sajid Mehmood, head of Department of Transfer of Technology, Central Cotton Research Institute, Multan, has proposed the names of eminent cotton breeders and other competent agricultural experts in the 17-member board in the formation of the National Cotton Board for the revival of cotton.
The proposed names of the board members are Dr Yusuf Zafar, Dr Tassuwar Hussain Malik, Chaudhry Muhammad Arshad, Dr Manzoor Ahmed Manj, Dr Allah Bakhsh, Dr Barkat Ali Soomro, Dr Jalal Arif, Dr Shaukat Ali, Dr Tahsin Azhar, Dr Anjum Ali Butar, Dr Shafqat Saeed, Dr Sagheer Ahmed, Bilal Israel, Syed Nadeem Shah and Khawaja Muhammad Shoaib. DG Extension Khyber Pakhtunkhwa and Balochistan are included in the board.
It is asked that the APTMA should immediately pay Rs 4 billion of cotton cess to Pakistan Central Cotton Committee. Steps should be taken together for the improvement of PCCC.
The rate of cotton in Sindh is in between Rs 19,600 to Rs 19,900. The rate of Phutti is in between Rs 8,500 to Rs 9,400 per 40 kg. The rate of cotton in Punjab is in between Rs 20,000 to Rs 20,500 per maund and the rate of Phutti is in between Rs 9,000 to Rs 10,500 per 40 kg. The rate of cotton in Balochistan is Rs 19,800 per maund while the rate of Phutti is in between Rs 9,000 to Rs 9,400 per 40 kg.
The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs 6,00 per maund and closed it at Rs 19,900 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman has said that overall a bearish trend prevails in the market. The rate of Future Trading of New York Cotton has decreased. Bearish trend also prevails in the Indian cotton market.
According to the USDA’s weekly export and sales report for the year 2022-23, 98,900 bales were sold. China was at the top by buying 70,500 bales. Bangladesh came second by purchasing 11,700 bales and Vietnam bought 9,900 bales and ranked third. As many as 65,700 bales were sold for the year 2023-24. China was at the top by buying 63,800 bales.
Separately, caretaker Chief Minister Punjab Mohsin Naqvi presided over a meeting at his office where it was revealed that the objective of achieving 100% cotton sowing had been accomplished in Faisalabad, Sahiwal, and Sargodha.
The meeting expressed its satisfaction with the attainment of this significant milestone by the provincial government. During the meeting, secretary Agriculture department presented a report on cotton cultivation and the supply and demand of urea in the province.
The CM commended the performance of the Agriculture department, administration, and field staff for their dedicated efforts in cultivating cotton over an area of more than 4.6 million acres of land.
Furthermore, the CM emphasized that all necessary measures would be taken to ensure the timely provision of urea fertilizer to the farmers, with appropriate funds being allocated accordingly.
He reiterated the government’s commitment to safeguard the interests of cotton growers at all costs and directed the administration to ensure an adequate supply of urea for the farmers. The diligent collaboration between the government and the hard work of the farmers has resulted in an exceptional increase in the cultivation area, and the farmers can expect a rewarding outcome for their efforts in the current year, he concluded.
However, at the AGM of PCBA in Multan, experts from PCGA and PCCC presented useful suggestions for the revival of cotton.
Copyright Business Recorder, 2023