KARACHI: Overall stability was observed in cotton prices. New York cotton prices saw an increase. However, business volume remained relatively low due to the increased arrival of low-quality imported cotton.
Head Transfer of Technology Central Cotton Research Institute Multan called for a growing need for a unified apex body to restore cotton production and promote the crop’s genuine growth, which would strengthen Pakistan’s economy.
Punjab Assembly Speaker’s excellent initiative to promote cotton cultivation and conserve water, but it should be noted that sugarcane mills in cotton-producing areas have harmed the cotton crop.
Pakistan’s local cotton market experienced overall stability in prices last week due to cautious buying from textile mills. However, trading volume decreased relatively as cotton arrivals commenced.
The supply of Phutti is dwindling day by day, and quality issues persist. Meanwhile, premium quality cotton commands a premium of Rs 1,000-1,500 per maund.
On the other hand, payment issues are escalating, and a financial crisis is deepening in the market. Furthermore, imports of cotton and cotton yarn are increasing, resulting in sluggish domestic payments.
The textile sector continues to face challenges, primarily due to high energy costs, despite occasional decreases in interest rates. However, Federal Finance Minister Muhammad Aurangzeb has assured improvement in sales tax refund payments.
According to the Pakistan Cotton Ginners Association’s report up to November 1, cotton production stands at 42 lakh bales, which is considered encouraging. If cotton arrivals continue to increase, total production may reach around 70 lakh bales, excluding unregistered production.
The rate of cotton in Sindh as per quality is in between Rs 16,700 to Rs 18,200 per maund. The rate of Phutti is in between Rs 7,400 to Rs 8,600 per 40 kg.
The rate of cotton in Punjab is in between Rs 17,700 to Rs 18,300 per maund. The rate of Phutti is in between Rs 7,300 to Rs 8,800 per 40 kg.
The rate of cotton in Balochistan is in between Rs 17,300 to Rs 18,200 per maund. The rate of Phutti is in between Rs 7,400 to Rs 9,000 per 40 kg.
The prices of Balochi and Primark cotton remained at Rs 18,500-18,700 and Rs 18,800-19,000 per maund, respectively.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 2,00 per maund and closed it at Rs 18,000 per maund.
Chairman of the Karachi Cotton Brokers Forum, Naseem Usman, said that the international cotton market saw an increase in cotton prices. New York cotton futures are trading between 69.50 and 71 American cents per pound.
According to the USDA’s weekly export and sales report, two lakh and twenty nine thousand bales were sold for the 2024-25 crop year.
Pakistan topped the list by purchasing 72,200 bales of cotton. Vietnam secured second place with 71,800 bales. China ranked third with 37,500 bales.
Head, Transfer of Technology, Central Cotton Research Institute Multan, stated that a strong apex body like the Pakistan Central Cotton Committee can play a pivotal role in promoting the cotton industry at the national level.
He says such a body can ensure stability in policy-making, fair distribution of resources, and access to modern technology and effective technical assistance to farmers.
He emphasized that establishing a robust apex body is crucial for the growth and development of Pakistan’s cotton sector.
Pakistan’s economy heavily relies on the cotton industry, and its revival necessitates research and development (R&D) and the establishment of a national apex body. The industry faces challenges like rising climate change, water scarcity and severe pest attacks on cotton crops
To combat these issues, continuous investment in modern scientific research is crucial. It is essential to develop improved seed varieties, promote advanced farming techniques and enhance climate resilience.
Sustaining R&D efforts is vital to address these challenges and ensure the industry’s growth.
If the institution remains inactive, individual efforts by various organizations to address cotton industry challenges will not yield significant success. Only under the umbrella of a strong apex body, coordinating and streamlining efforts, can cotton’s true potential and national economic growth be achieved.
Individual organizations’ efforts will be ineffective without a unified approach.
A strong apex body is crucial for cotton’s growth and economic stability.
Research and development, along with a robust apex body, are essential for securing the cotton industry’s future.
Punjab Assembly Speaker Muhammad Ahmad Khan’s recent remarks on rice and sugarcane cultivation are a crucial and visionary step towards strengthening Punjab’s economy by effectively utilizing agricultural resources. Rice and sugarcane farming consumes excessive water, exacerbating the water scarcity issue. Experts report that approximately 3,000 litres of water are required to cultivate one kilogram of rice, while 1,500 to 2,000 litres are needed for one kilogram of sugarcane.
To address this, prioritizing crops that yield better results with minimal water usage is the way forward. This strategic approach will help optimize water resources and promote sustainable agriculture in Punjab.
The Speaker has advised farmers to focus on cotton cultivation, a revolutionary decision that can boost Pakistan’s agricultural economy. Cotton is the backbone of Pakistan’s economy and a vital raw material for the textile industry. Traditionally, cotton was grown in southern Punjab, particularly in Rahim Yar Khan and D.G. Khan, but sugarcane cultivation has increased in these areas, exacerbating water scarcity issues.
Protecting Punjab’s traditional cotton-growing areas from water-intensive crops like sugarcane will not only improve cotton production but also stabilize the textile sector. These measures can be a milestone in water conservation and agricultural development.
A wise agricultural policy will conserve precious resources like water, increase production of cotton, a crucial export crop.
This step represents a practical and effective strategy for Pakistan’s agricultural and economic stability, strengthening the agricultural sector and meeting global demand for Pakistani cotton.
This decision is undoubtedly in line with national interests and marks a positive step towards optimal utilization of agricultural land, leading to increased prosperity and stability in Pakistan’s agriculture sector in the future.
Copyright Business Recorder, 2024