Weekly Cotton Review: Rates remain stable

KARACHI: The rate of cotton remained stable amid fluctuation in international market rates. Low trading observed due to lack of interest by textile and spinning sector in buying because of Ramadan, decreased dollar rate, Covid-19 as well as low rate of yarn and its low demand.

The season of cotton has ended and ginners had left the stock of hardly 60,000 bales. They will sell it steadily to the needy mills because needy mills were showing some interest in buying due to which the trading volume was over all low. Almost all ginning factories were closed.

For the new season public and private sector is very active for increasing the production of cotton in the country. It is a matter of grave concern that especial task force constituted by Prime Minister Imran Khan under the chair of group leader All Pakistan Textile Mills Association Gohar Ejaz for increase in the production of cotton has done nothing on the ground.

The rate of cotton in Sindh is in between Rs 10200 to Rs 10600 per maund, in Punjab it is between Rs 10800 to Rs 11500 per maund. Although on the basis of lending some bales of Balochi cotton were sold at Rs 12500 per maund.

The Spot Rate Committee of the Karachi Cotton Association has stabled the rate of cotton at Rs 11300 per maund.

Chairman Karachi Cotton Brokers Forum Naseem Usman told that over all fluctuation was witnessed in the rate of cotton in international markets especially fluctuation was clearly seen in the Rate of Promise (Waday Ka Bhao) of New York Cotton for July which reached 91American cent from 85 American cents and on Friday after decreasing closed at 88 American cents.

USDA weekly export report shows a decline of 25 percent as compared to last week. This week Turkey was on number one after importing 20900 bales, China was on number second after importing 15900 bales while Pakistan was on number third after importing 13400 bales.

Turkey has imposed complete lock down for one week. This was the reason of negative impact on New York Cotton Market. More over the rate of dollar increased to some extent this will have negative impact on export of New York Cotton. Further more pleasant weather in Texas after rains is another reason for the decrease in the rate of New York Cotton. The fluctuation was seen in the rate of cotton in the markets of Brazil, Central Asian States and India but over all markets remained stable in these countries.

During the last year, there was drastic decrease in the production of cotton in the country. This year all public and private sector departments relating to cotton are very actively playing their role in order to increase the production of cotton. Government has announced incentives, which includes availability of seeds and pesticides for cotton farmers. The government has announced subsidy of Rs 10 billion for cotton farmers. The government is also giving loans to cotton farmers through Agriculture Development Bank on low interest rate. In this regard Pakistan Cotton Ginners Association is trying hard and they had constituted a task force which will raise awareness among the farmers in their areas along with the representatives of Agriculture Development Bank.

Malik Talat Sohail, Convener of the Regional Standing Committee on Cotton and Textiles of the Federation of Pakistan Chamber of Commerce and Industry, (FPCCI) lauded the issuance of Kisan Card and appreciated the Prime Minister’s announcement of Rs.1000 per sack subsidy on DAP fertilizer during his maiden visit to Multan.

Talat Sohail said that the Prime Minister had disappointed us by not announcing any relief package for cotton. He said that multinational foreign exchange depended on white gold cotton which was also ignored in the Prime Minister’s Rs 300 billion agricultural package. Now, even on the occasion of the Prime Minister’s visit to Multan, there were hopes from Prime Minister Imran Khan regarding a package to increase cotton production, which were not fulfilled. Once again the policy of increasing cotton production was ignored which is a gross excess and it is beyond comprehension to ignore the crop which is essential for the development of the country, he added.

He said that Provincial Minister for Agriculture Syed Hussain Jahanian Gardezi was the only minister who mentioned the importance of cotton in the Prime Minister’s ceremony in Multan. We are deeply grateful to him. He further said that Pakistan which used to export its cotton to the world and has become one of the top cotton importing countries in the world which is causing loss of valuable foreign exchange. It is important for the government to realize that an increase in cotton production alone can reduce the country’s debt and create countless jobs at the local level.

Malik Sohail once again demanded that the subsidy price of cotton be fixed at Rs 5,000 per quintal immediately so as to create an atmosphere of confidence among the cotton growers.

Vice President Pakistan Central Cotton Committee Dr Muhammad Ali Talpur in its statement demanded that government should immediately announce support price of cotton. He said final decision regarding this will be taken very soon after consultation with all the stakeholders. He also said that Ministry of National Food Security and Research wants a solid solution in such a way that not only quality but the production of the cotton will be increased. He said that in this regard recommendations are presented to the government level. He said support price will be announced after keeping in consideration the cost of production.

Dr Talpur further said ministry has received recommendations from Punjab regarding fixing of support price of cotton. He said all arrangements have been finalized regarding sending of summary to the meeting of Economic Coordination Committee adding that official committee will soon take decision in this regard.

Talpur said recently announced Rs 10 billion package for cotton farmers will be beneficial for the revival of cotton crop as well as increasing the production of cotton. He said through this package farmers will be given seeds, fertilizers and the on subsidized rates which will decrease the cost of production of farmers.


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