KARACHI: The prices of cotton remained stable over all however chances of increase in prices after Muharrm Ul Haram remain due to increase in buying. Mixed trend was seen in international market. Prime Minister again shows his resolve of taking textile industry out of crisis.
In the local cotton market during the last week due to the showing of interest in buying of the good quality cotton by the textile and spinning mills prices of cotton remained stable over all. The over all trading volume also increased. The traders of Phutti had increased the supply while ginners had increased the ginning process. Excessive buying was seen by mills due to Muharram Ul Haram holidays. However, the rate of Phutti remained low due to the rain affected Phutti in Sindhi. The rains affected the quality of Phutti in Sindh due to which the cotton of Sindh was sold approximately Rs 500 per maund less as compared to the cotton of Punjab. The farmers suffered a loss due to the low price of Phutti while according to ginners they gained despite low price of cotton.
The quality and quantity of cotton was affected in Sindh due to recent rains. When farmers were asked about their loss due to rains they said that he suffered 10 to 15 percent loss due to rains. In Punjab the quality of cotton was affected due to rains in cotton growing areas but the quantity was not affected. However, exact estimates regarding cotton production and damages will be available till the end of September.
During the last week rate of cotton in Sindh was in between Rs 7700 to Rs 7900 per maund while the rate of phutti was in between Rs 3000 to Rs 3500 per 40 kg. The prices of Khal and Banola witnessed downward trend. While in Punjab due to the better quality of cotton as compared to Sindh the rate of cotton was in between Rs 8250 to Rs 8600 while the rate of Phutti was in between Rs 3400 to Rs 4000 per 40 kg while the prices of Khal and Banola were decreased but the rate remained stable due to the demand. The rate of cotton in Balochistan was in between Rs 8050 to Rs 8100 while the rate of Phutti was in between Rs 3800 to Rs 4000 per 40 kg.
The Spot Rate Committee of Karachi Cot’ton Association has increased the rate of cotton by Rs 100 per maund and closed it at Rs 8100 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that on the direction of Prime Minister Imran Khan Steps should be taken to increase the production of co’tton by giving incentives to the farmers. Finance Minister Dr Hafeez Sheikh called a meeting which was attended by representatives of farmers and the representatives of organizations related with cotton. Hafeez Sheikh said that government had imposed duty on the import of cot’ton so that farmers can get good prices and to encourage the farmers. He also said that government wants to fix the price of Phutti in order to increase the production of cotton as well as discourage the import. It will also increase the job opportunities.
Hafeez Sheikh said that APTMA, PCGA, Kissan Ittehad and other stake holders should sit with FBR and commerce ministry and talk with them regarding their problems and gave suggestions so that in the coming meeting government will be in a position to take positive steps and announce incentives for the farmers so that they will sow cotton on large area.
The meeting was attended by advisor to PM on Commerce, textile, investment, industry and production Abdul Razak Dawood, Minister for National Food Security and Research Sahibzada Muhammad Mahboob Sultan, chairman Federal Board of Revenue (FBR) Shabbar Zaidi and other high officials.
Hafeez Sheikh said that government was aware of the problems faced by the farmers and will try to solve their problems and do whatever possible for them. The government had allocated Rs 250 billion for the farmers.
Naseem Usman told that mixed trend was seen in international market. In New York Cotton Market Waday Ka Bhao (Rate of Promise) was fluctuating between 57.50 American cents and 59.00 American cents per pound. The rate of cotton remained stable in China while the rate of cotton was under pressure in India.
The local textile sector was in a crisis like situation especially there is a financial crisis in the market. There is a recession in the demand and rate of cotton yarn for spinning mills.
Few days back group leader APTMA Gohar Ejaz in a TV interview complaint about government attitude that it looks that government was not serious in solving the problems of textile sector. He said when the matter is near to be solved the government put it on back burner. He said we had met Prime Minister many times and five times our problems put before meeting of Economic Coordination Committee and matters were discussed in committee but positive results were not came out from these meetings. However, Prime Minister Imran Khan had showed his resolve of solving the problems of textile sector and took the sector out from the crisis.
Moreover, out of two demands of ginners the demand of 1 percent withholding tax is accepted while the demand of payment of 10 percent sales tax by textile mills needs to be addressed.
Chairman Pakistan Cotton Ginners Association Mian Mahmood Ahmad is saying with confidence that matter of paying sales tax is decided and SRO in this regard should be issued soon. Pakistan Cotton Ginners Association has issued the statistics of cotton production till September 1 according to which during this period 13 lac 55 thousand bales are produced.
(This news/article originally appeared in Business Recorder on September 9th, 2019)