The cotton of the mills has started arriving who had signed contracts for the import of cotton from January 15. Although the government has abolished the import duty on the import of cotton but no SRO had been issued by the government till January 18 Importers were saying that they had signed the agreements for the import of 42 lac bales of cotton from abroad while new agreements are signed on daily basis.
Although due to the increase of rate of New York Cotton the new agreements for the import of cotton in over seas are signed in small numbers due to which the textile mills are taking interest in buying of local cotton.
In the local cotton market the rate of cotton remained stable. In Sindh the rate of cotton is in between Rs 7500 to Rs 9300 per maund while the rate of Phutti is in between Rs 3200 to Rs 4400 per 40 Kg. In Punjab the rate of cotton is in between Rs 7800 to Rs 9300 per maund while the rate of Phutti is in between Rs 3200 to Rs 4700 per 40 Kg.
The Spot Rate Committee of Karachi Cotton Association has stabled the rate at Rs 9000 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that over all rate of cotton in international market remained stable. The rate of cotton in New York Cotton Market could not increase despite China and America trade agreement.
There is an increasing trend in the prices of Indian cotton after the increasing interest of China and Vietnam in Indian cotton where as mixed trend was seen in the prices of cotton in China. According to the reports received from India cotton production is expected to increase by 13.6 percent as compared to last year. Cotton Cooperation of India will buy 50 lac bales as per the support price announced by the government. Up till now agreements of 38 lac bales has been signed. Due to the crisis in local textile sector of India the prices of cotton in India are not increasing however due to increase in buying by Vietnam, China and Bangladesh the prices of cotton increased by Rs 1000 per candy.
Naseem Usman told that it is expected that locally 85 lac bales of cotton will be produced in the country which is 20 percent less as compared to last year's production due to which 60 lac cotton bales of worth around two billion dollars will be imported which is a burden on the already weak economy. He also said Indian government gives incentives to the farmers so that they can get proper cotton prices and sets a cotton price in order to encourage them.
In Pakistan the government does not set support price for the cotton growers due to which they don't get the fair price of their production and they are inclined towards other crops particularly the sowing area of corn and sugar cane is increasing while the sowing area of cotton is decreasing. Each year, the Federal Agricultural Committee of the government announces the production and area of cotton before the sowing begins. Cotton production area over the past several years has not been properly measured but the fact is that exact area being cultivated is not accurately determined. They determined the production of cotton on assumptions while sitting in air conditioned rooms. The survey should be done district wise for the exact determination of land and only then true picture can be determined.
It is the need of the hour that seeds of standardized quality should be supplied. More over the medicine supplied are also substandard. It is in the interest of the country that seeds of the standard quality should be imported. Many years back India imported seeds from Monsanto; due to which phenomenal increase in production of cotton is witnessed in India. We can take help from our friendly country China by importing agricultural technology from them.
Pakistan Cotton Ginners Association has issued the statistics of production of cotton in country up till January 15 according to which during this period 83 lac 80 thousand bales produced in the country which is 21 lac 19 thousand bales or approximately 20 - 26 percent less as compared to 1 crore 4 lac 56 thousand bales produced last year during this period. Textile and other industries are adversely affected by increase in the prices of electricity by the government.