The Spot Rate Committee of the Karachi Cotton Association on Wednesday has increased the spot rate by Rs 400 per maund and closed it at Rs 11,700 per maund. Market sources told that the rate of cotton reached the highest level in history. The local cotton market remained bullish on Wednesday. Market sources told that trading volume was satisfactory.
Cotton Analyst Naseem Usman told that as per media reports traders had stopped trading in the biggest yarn market of Asia has stopped selling cotton and yarn due to skyrocketing high prices. It is feared that looms may stop their operations.
Zahid Mazhar, Sr. Vice Chairman, All Pakistan Textile Mills Association (APTMA) has out rightly rejected the statements appearing in the media from Pakistan Hosiery Manufacturers Association and Pakistan Textile Exporters Association regarding the so called shortage of yarn in the country and their proposal of allowing import of Cotton Yarn from India.
Zahid Mazhar while commenting on the statements of PHMA and PTEA said that their narrative is not based on facts and they are misleading the government and the authorities concerned as there is no shortage of cotton yarn in the country. He pointed out that during the period from July 2020 to December 2020 as per the data released by Pakistan Bureau of Statistics total production of cotton yarn was 1,715,665 tons compared to the corresponding period of last year when 1,714,175 tons was produced in the country.
Out of the total production of yarn only 10 percent was exported in the first half of the current financial year whereas 90 percent was available for the downstream industry out of which the domestic downstream industry consumes only about 70 percent and the balance 20 percent remains as surplus. Moreover the exporters are allowed to import duty free cotton yarn under DTRE, Export Oriented and Manufacturing Bond Schemes from abroad if they find the local yarns expensive.
The FBR’s Inland Revenue (Operations) Member Dr Muhammad Ashfaq has said that the newly-upgraded ‘Fully Automated Sales Tax e-Refund (FASTER) Plus system’ is so expeditious and transparent that now there is no need of sales tax zero rating regime for the exporters.
While addressing a meeting of Sialkot exporters, organized by the Pakistan Readymade Garments Manufacturers & Exporters Association, he said that the FBR is paying refunds’ claims of Rs200-250 billion to the exporters every month, as each and every exporter is enlisted in the FASTER Plus system, which is performing very well and involving no human hand.
Naseem Usman told that 400 bales of Kotri were sold at Rs 12,000 per maund (Mill to Export), 2040 bales of Daharki, 2466 bales of Sadiqabad, 200 bales of Rahim Yar Khan, 2300 bales of Haroonabad, 200 bales of Faqeer Wali and 243 bales of Fort Abbas were sold at Rs 12,000 per maund.
Naseem also told that rate of cotton in Sindh was in between Rs 10,200 to Rs 11,000 per maund. The rate of Phutti in Sindh is in between Rs 4000 to Rs 5900 per 40 kg.
The rate of cotton in Punjab is in between Rs 10,300 to Rs 11,100 per maund. The rate of Phutti in Punjab is in between RS 4000 to Rs 5900 per 40 kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1800 to Rs 2250. The rate of cotton in Balochistan is Rs 11,000 per maund.
The Spot Rate Committee of the Karachi Cotton Association has increased the spot rate by Rs 400 per maund and closed it at Rs 11,700 per maund. The rate of Polyester Fiber was increased by Rs 5 per Kg and was available at Rs 210 per Kg.