May 31, 2021

Rate remains stable in local market.

The rate of cotton remained stable. Partial arrival of new Phutti crop has started. 

The sowing of cotton has started in 60 percent to 70 percent areas of Sindh and Punjab. Despite that government has not announced support price of cotton yet. Cotton crop is at risk due to water shortage in Sindh and Punjab. The increasing trend in the rate of cotton remained continued in international markets. Panic among ginners who had the stock of Khal because of increase of Wanda by farmers instead of Khal.

 

In the local cotton market during last week rate of cotton remained stable. Old cotton crop was available in limited quantity. Needy mills were buying old stock of cotton at Rs 12500 to Rs 13000 per maund while partial arrival of new Phutti crop has started.

 

As per information in Sindh three factories has resumed their operations while in Punjab two to three factories has resumed their operations and Phutti had started arriving partially. In one factory of Burewala one lot of Phutti has reached while in one factory of Sanghar two trucks of Phutti has arrived. In the same way Phutti will be arrived in one factory of Tando Adan. Now it is possible that preparation of Lot started in these four factories. Ginners had sold cotton in advance. In Punjab they had sold cotton at Rs 12500 per maund and in Sindh they had sold at Rs 12200 per maund. The rate of Banola is good and is in between Rs 2100 to Rs 2400 while Phutti is being sold in between Rs 5300 to Rs 6000 per 40 kg.

 

It is very hot and on the other hand there is a problem of water. Agriculture Minster Punjab Hussain Jahanian Gardezi said that Punjab is facing water shortage of 22 % while Sindh is facing shortage of around 17%. The tussle is going on in between Sindh and Punjab for the availability of water.

 

The reason behind shortage of water is slow melting of ice on the mountain. It is hoped that as the temperature arises in the coming days ice will start melting on the mountains and the problem of shortage of water will be solved.

 

Economic consultant Minister of National Food, Security and Vice President Pakistan Central Cotton Committee, Dr Muhammad Ali Talpur while talking to Naseem Usman said that up till now cotton will be cultivated on 17 lac acres in Sindh. In Punjab according to estimates cotton will be cultivated on 40 lac acres. The cotton sowing has been completed on 28 to 30 lac acres in Punjab. In Sindh cotton sowing has been completed on 13 to 14 lac acres. The acreage is increasing day by day. Muhammad Ali Talpur also told that target of production of one crore five lac (10.5mn) bales has been set for next season.

 

Occasionally deals were reported by the Spot Rate Committee of the Karachi Cotton Association. The spot rate was increased by Rs 1000 per maund during last one week and was closed from Rs 11300 to Rs 12300 per maund.

 

In Sindh cotton was left in very limited amount and its rate should be around 11000 per maund. In Punjab the rate of cotton is in between Rs 12500 per maund to Rs 13000 per maund. Ginners were worried because of their left over stock of Khal. The demand of Khal is very low because animals were not eating mixed Khal and the farmers were giving it to the bufffaloes.

 

Chairman Karachi Cotton Brokers Forum Naseem Usman told that over all bullish trends was witnessed in international cotton markets. Fluctuation was witnessed in the rate of New York Cotton on deals of delivery of July but the rate was in between 82 to 83 American cents.

 

More over USDA weekly export report shows an increase of 59% as compared to last week. The Rate of Promise (Waday Ka Bhao) did not increase significantly despite rains in Texas which is the biggest cotton producer and strengthening of dollar. However, new crop from Brazil has started arriving. The rate of cotton is stable in the market of Sudan and Central Asian states but the rate of cotton is continuously increasing in India. The rate of cotton in India increased by Rs 1500 per candy. On Friday the rate of Shankar -6 in India was around 47900.

 

Indian traders Ajay Dalal and Chairman Cotton Association of India Atul Ganatra told Naseem Usman that reason behind bullish trend in the market is that yarn and fabric was sold at good price. Atul Ganatra told government had closed almost all textile industry in Tamilnadu due to COVID 19 till May 31, 2021 but now the government had extended the lock down till June 7. Despite all this increase in rate and demand of cotton was witnessed in India.

 

According to the information received from cotton production areas of Sindh and Punjab the position of sowing is good in Sindh but sowing has been done on 13 to 14 lac acres. In Punjab sowing has been completed on 30 lac acres which is almost completed on 75 per cent area out of allocated 40 lac acres.

 

The tussle between two provincial governments of Punjab and Sindh is going on the issue of availability of water. According to information farmers in Punjab are giving preference to the crops of corn and sugar cane. But the rate of Phutti is good in many areas.

 

Regional Committee of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Cotton and Textiles in collaboration with Smart Agriculture Lodhran has set up a camp in Dunyapur Tehsil in connection with the cotton awareness campaign.

 

Chairman Task Force of Pakistan Cotton Ginners Association (PCGA) Mian Fazal Elahi Sheikh and Convener Committee on Cotton and Textiles of FPCCI Malik Talat Sohail briefed the local cotton growers and farmers on the importance of cotton production in the national economy.