The ginners had left the stock of 700,000 bales out of which the good quality cotton is available in small amount. Many mills had increased the buying of cotton according to their needs due to which the trading volume remained stable during the week.
On the other hand big textile groups are relying on imported cotton. The delivery of cotton from overseas is going on due to which textile mills are giving payments. According to the private importers of cotton agreements for the import of 48 lac cotton bales had been signed. Day by day more contracts are also being signed. According to the sources of All Pakistan Textile Mills Association (APTMA) 55 lac bales of cotton will have to be imported to fulfill the demands of local industry.
In Sindh and Punjab the prices of cotton is in between Rs 7000 to Rs 9200 per maund while the rate of Phutti in Sindh is between Rs 2800 to Rs 4100 per 40 kg. In Punjab the rate of Phutti remained in between Rs 3000 to Rs 4500 while due to the less production of cotton the rate of Banola, Banola Oil and Khal remained stable.
The Spot Rate Committee of Karachi Cotton Association has decreased the rate by Rs 100 per maund and closed it at Rs 9000 per maund. Chairman Karachi Cotton Brokers Forum Naseem Usman told that markets were affected by Corona Virus. According to China they are going to announce subsidy on 700 American items from March 2nd. Due to this the rate of New York Cotton increased by two cent. As per information China is again going to import cotton from America. However in China the trade is affected due to the uncertainty. The effects of uncertainty are seen on the cotton and textile products.
In India the rate of cotton start's stabling. The exporters of cotton in India are demanding that government should allow export to Pakistan because in the past Pakistan was the biggest importer of Indian cotton. The rate and demand of local textile products is stable. The positions of composite mills are better only spinning mills are facing difficulties in selling yarn.
The difficulties which will be faced for increasing the production of cotton during the year 2020-2021 includes substandard seeds and pesticides as well as Pink Ball Worm, White Lie and other viruses are extremely damaging for the crop.
Moreover two major problems are yet to face if immediate remedial measures were not taken then it is feared hat cotton production will decrease further. The major problem for the next season is the availability of certified seeds for the next season. The germination capacity of available seeds is alarmingly low. In an ordinary situation the germination capacity was in between 70 percent to 80 percent but due to bad cotton crop this year the quality of the seed also effected.
According to farmers the seeds companies are returning the advances. They are of the view that there is a shortage of good quality seed. They are not ready to sell substandard seeds to the farmers. Many seed companies had requested to Federal Seed Certification and Registration department they will give certificates to available seeds of germination capacity of 40 percent to 50 percent so that they can sell them.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that there is a threat of attack of Locust Worm not only on cotton but on all the crops which can cause irreparable damage to the crop. The concerned government departments should seriously think over it otherwise there is a serious threat of cotton crisis in the coming season.
The government had imposed emergency for the protection of wheat crop against the attack of Locust Worm. In the same way imposition of emergency should be continued for the protection of cotton crop against the attack of Locust Worm.
According to APTMA sources the energy department is not decreasing the energy prices which are against the resolve of Prime Minister Imran Khan. The APTMA is complaining but no one is listening. They are saying that India is planning to capture the 20 billion dollar textile market. The increasing power tariff in Pakistan has decreased Pakistan's chances of capturing billion dollars textile market.
The India is taking advantage of Corona Virus in China for capturing the world market. There is an equal opportunity for Vietnam and Bangladesh for taking their share. On the other hand in Pakistan the government has increased the power tariff from 7.5 cent to 13 cent inclusive of taxes.
This terrible situation is not only suitable for Pakistan's textile products to take its place in the international market but Pakistan is out of competition with other countries.
The Industrial stagnation threatens widespread unemployment which will create unrest as well as give birth to social problems. This was stated by executive director APTMA Shahid Sattar in a letter written to Advisor of Prime Minister on Commerce and Trade Abdul Razzaq Dawood.