October 27, 2020

Cautious buying by mills seen on cotton market.

The local cotton market remained stable on Monday. Market sources told that mills were involved in cautious buying due to which the trading volume remained low.

Cotton Analyst Naseem Usman told that it is expected that this year cotton production will be 35% less as compared to last year. He said that after the decrease in cotton production we have to import cotton of worth millions of dollar like we are importing edible oil of worth millions of dollars.

 

Naseem told that there is a good news for all the stakeholders of the cotton market that the government has formed a task force headed by group leader All Pakistan Textile Mills Association Gohar Ijaz. The objective of forming the task force is to improve cotton production.

 

The task force contacted experts from all major cotton producing countries in the world except India. It is expected that more than two dozen cotton experts from around the world are arriving in Pakistan in November.

 

At present, cotton research institutes in Pakistan are facing severe financial crisis while the head of Pakistan Cotton Central Committee, the most important research institute, is on leave while other employees are not getting their salaries.

 

Meanwhile Pakistan Cotton Ginners Association (PCGA) Chairman Dr Jassumal said the cotton economy was portraying a gloomy picture in the year 2020 and called for announcement of cotton support price besides a detailed analysis supported by a fresh attempt to bring cotton economy back on track.

 

Pakistan has slipped from third to sixth position with regard to cotton production while average of per acre production was below 10 Maunds, said PCGA chairman while addressing a press conference at PCGA House here.

 

He claimed that while the climate change affected production by 2-3 percent up or down in rest of the world, in Pakistan the whole burden of the cotton downslide was being put on the climate change.

 

He said that after having witnessed successive years of loss, the farmers in Pakistan have shifted to other profitable options and reduced cotton area by around 26 percent.

 

Dr Jassumal demanded the government constitute a probe commission to investigate reasons behind cotton crop failure. Ch Anwar said the government policies caused cotton crop shortfall. He said textile goods are main exports of the country and if cotton is not available in the country then we would lose global markets.

 

Meanwhile, The Federal Committee on Agriculture (FCA) informed that the output of all major Kharif crops, including sugarcane, rice, oilseeds and pulses, witnessed a significant growth, while the area under cultivation also rose.

 

An FCA meeting, chaired by Food Security Minister Fakhar Imam, was informed that the area under sugarcane cultivation in Punjab increased by 20.68% as compared to last year, 0.96% in Sindh, 3.37% in Balochistan. However, the cultivation area decreased by 0.8% in Khyber Pakhtunkhwa (K-P).

 

Compared to the previous year's data, the sugarcane production rose by 21.18% in Punjab, 0.53% in Sindh, 0.14% in K-P and 9.54% in Balochistan.

 

In addition, the area under rice cultivation was increase by 20.30% in Punjab as compared to the previous year. In K-P it increased by 0.25%, in Balochistan by 1.77%, but Sindh witnessed a decline the rice cultivation area.

 

Similarly, rice production in Punjab witnessed a 20.27% growth during the season, where as in Sindh it was decreased by 3.24%. The rice production in K-P increased by 0.77% and rose by 2% in Balochistan.

 

The meeting was also apprised of the data about the area under moong pulse cultivation, which grew by 22.54% as compared to previous year, whereas peanut production in the country increased by 57.13%. Speaking on the occasion, Imam emphasised the need for using modern technology, better seeds, balanced use of fertilisers in order to achieve higher yields. He said paddy and sugarcane crops were better but cotton production was declining due to pink ball worm and white fly attacks

 

Naseem told that 1000 bales of Khairpur were sold at Rs 9500 to Rs 9700 per maund, 400 bales of Layyah were sold at Rs 9700 per maund, 1000 bales of Shadan Lund were sold at Rs 9800 per maund, 200 bales of Sadiqabad were sold at Rs 10,000 per maund, 800 bales of Khanpur were sold at Rs 10,200 to Rs 10,300 per maund, 600 bales of Bahawalnagar were sold at Rs 10,200 to Rs 10,300 per maund, 600 of Rahim Yar Khan, 400 bales of Fort Abbas, 200 bales of Hasilpur were sold at Rs 10,300 per maund and 1200 bales of Haroonabad were sold at RS 10,300 to Rs 10,500 per maund.

 

He told that rate of cotton in Sindh was in between Rs 8600 to Rs 10,000. The rate of cotton in Punjab is in between Rs 9800 to Rs 10,400. He also told that Phutti of Sindh was sold in between Rs 4000 to Rs 5100 per 40 kg.

 

The rate of Phutti in Punjab is in between Rs 4400 to Rs 5300 per 40 kg.

 

The rate of Banola in Sindh was in between Rs 1650 to Rs 2100 while the price of Banola in Punjab was in between Rs 1850 to Rs 2150. The rate of cotton in Balochistan is in between Rs 9600 to Rs 9700 while the rate of Phutti is in between Rs 5000 to Rs 5500.

 

The Spot Rate Committee of the Karachi Cotton Association stabled the spot rate at Rs 10,100 per maund. The Polyster Fiber was increased by Rs 2 per kg and was available at Rs 158 per kg.