The prices of cotton increased by Rs 300 per maund; production of 80 lac bales expected in Punjab. Strike of oil mills will affect the business. Business and industry circles are protesting against imposition of general sales tax. In the local cotton market during the last week the prices of cotton increased by Rs 200 to Rs 300 per maund due to increasing interest of textile and spinning mills in the buying of new cotton crop. The trading volume also increased. There is an increase in the supply of Phutti and increase in demand of cotton. Many ginners were over sold in cotton.
On the other hand due to the increase in the number of ginning factories in Punjab and Sindh the trend of increasing prices of Phutti was seen. The decrease in the price of Dollar as compared to Rupee is not affecting the price of Phutti. The increase of Rs 200 to Rs 300 per 40 kg was recorded in the rate of Phutti. The price of cotton in Sindh was in between Rs 8300 to Rs 8350 per maund after the increase of Rs 300 per maund. The price of Phutti in Sindh was in between Rs 3700 to Rs 4000 per 40 Kg.
The Phutti in Punjab has started arriving in very small quantity due to which only four to five ginning factories has started ginning. The rate of cotton in Punjab is in between Rs 8400 to Rs 8500 per maund while the Phutti is available at the rate of Rs 3800 to Rs 4000 per 40 kg. The price of Banola was increased by Rs 200 to Rs 250 per maund. Up till now 60,000 bales of new crop has arrived.
Spot Rate Committee of Karachi Cotton Association has increased the spot rate by Rs 200 per maund and closed it at Rs 8200 per maund. The ginners had the stock of one lac fifteen thousand old cotton bales which are available at the rate of Rs 7000 to Rs 8600 per maund according to the quality.
Chairman Karachi Cotton Brokers Forum told that according to reports the position of production of cotton crop is satisfactory in Sindh while sowing of cotton has completed in Punjab. The corn was cultivated in large cotton growing areas of Punjab. The government has also increased the rate of sugar which will encourage the cultivation of sugar cane as a result of which the production area of cotton will be decreased.
According to agriculture minister Punjab Malik Noman Ahmad Langrial the sowing of cotton on allocated land in Punjab is completed. It is expected that production of 80 lac bales of cotton will be achieved in Punjab. According to the information Tadi Dal has reached from Sindh to some areas of Punjab. There is a chance of loss of standing cotton crop due to the attack of Tadi Dal. The concerned departments are trying to control the damage but up till now no office figures of damage were released. How ever, according to external estimates Tadi Dal has damaged the cotton crop spreading over two lac acres.
He told that mixed trend was seen in the rate of cotton. According to the information Army Worm has attacked the cotton crop in China. In India cotton sowing was completed on 14.7 million hectares which was 10 million less as compared to last year due to the late starting of Monsoon season. The bearish trend was seen in Indian cotton market despite the low cotton production while in Pakistan cotton crop spreading over two lac acres was affected.
The news of decreasing of intensity of trade war between China and USA, USDA report which shows the increase of export of American cotton don't have any positive impact on the rate of New York Cotton. The business in the country is affected due to the imposition of 17 percent GST on zero rated industries particularly imposition of 17 percent GST on textile products and 10 percent GST on cotton has decreased the business of factories especially textile processing sector is on strike for the last six days due to which crisis like situation has evolved and the traders and industrialists are protesting against the imposition of GST.
The imposition of 5 percent GST on Khal for filers and 8 percent for non-filers oil mills has announced to stop taking Banola from the ginners after Sunday due to which ginners are also giving signals of closing the ginning mills. According to them cotton will be sold but due to the strike of Oil mills where they will sell Banola. They said that Banola can not be stocked for a long time as a result of which they had to close the factories. Due to the closure of ginning factories prices of Phutti will come down.
The imposition of 17 percent GST has affected the business in local cotton and yarn market as well as affected the business in the markets of cotton and textile products. The trading volume is very low and people are not talking interest in business. People are uncertain due to imposition of sales tax in new budget and increase in the prices of energy. Many people are worried due to strikes. The government has extended the date of duty free import of cotton till July 31.