KARACHI: Cotton prices were seen steady in the last week amid low traded volumes. There was a bullish trend after the ups and downs in the international cotton markets. A target of one crore twenty seven lakh seventy thousand bales of cotton has been set for the upcoming season.
Exports of textile products continue to decline as industrialists protest against scrapping of electricity and gas concessions.
Officials of the Pakistan Cotton Ginners Association have met Federal Energy Minister Khurram Dastgir to discuss the energy problems faced by the ginning industry. Pakistan Cotton Standards Institute and Pakistan Cotton Brokers Association are actively working for the grading of cotton with the support of Pakistan Cotton Ginners Association.
Furthermore, the IMF is calling for a hike in interest rates, which would further destabilize the industry, which is already facing a difficult situation as exports continue to decline.
On the other hand, recession continues in the international markets. There is a huge financial crisis in the markets. The ginners also have a stock of about 2 to 2.5 lakh bales of cotton. There is a fear of rain and if the rains continue, harvesting will be delayed and the stock cotton will be sold.
As per the reports received from the cotton growing areas of Sindh and Punjab, cotton sowing is satisfactory at present.
According to estimates, Punjab will produce 83,36,000 bales, Sindh 40,00,000 bales, Balochistan 4,30,000 bales and Khyber Pakhtunkhwa 4,000 bales.
The total target area under cotton cultivation has been fixed at 68 lakh thirty four thousand acres, in which cotton cultivation will be done in Punjab, forty nine thousand eighty six thousand acres in Punjab, sixteen lakh forty nine thousand acres in Sindh province, cotton cultivation in Sindh. One lakh eighty one thousand acres in Balochistan and five thousand acres in Khyber Pakhtunkhwa.
The rate of cotton in Sindh ranged from Rs 17,500 to Rs 20,500 per head. Available in limited quantity, the rate of footi was Rs 6500 to 8000 per 40 kg. The rate of cotton in Punjab ranged between Rs 18,500 to Rs 21,000 per head. The rate of foot was between 6500 to 8800 rupees per 40 kg. rate of khal, banola and oil; Stay still though.
The spot rate committee of the Karachi Cotton Association kept the spot rate unchanged at Rs 20,000 per head.
Karachi Cotton Brokers Forum President Naseem Usman has said that the rate of futures trading in New York cotton market has seen volatility in the international cotton markets.
In the first three days of the week, the prices fell heavily due to the increase in interest rates by 25 basis points by the FED. However, after the arrival of USDA's weekly exports and sales on Thursday which is positive, the futures trading rate rose by 5 US cents to trade at 84 US cents.
According to the weekly USDA export and sales report, two lakh thirty one thousand bales were sold for the year 2022-23.
China topped the list by purchasing one lakh seventeen thousand one hundred (including 400 bales exchanged with Pakistan).
Vietnam was second with 43,500 bales (including a swap of 200 bales from Taiwan). Turkey bought 34,800 bales and stood at the third position.
Twenty six thousand nine hundred bales were sold for the year 2023-24.
Turkey bought 12,800 bales while Honduras bought 8,300.
Meanwhile, Javed Balwani, President of All Pakistan Hosiery Manufacturers Association, President of Pakistan Apparel Forum, has said that there has been a decrease of three billion seven million dollars in exports in the first ten months of the financial year 2022-23.
Apart from this, for the cotton year 2023-24, a target has been set to produce one crore twenty seven lakh twenty seven lakh cotton.
This was shared by Cotton Commissioner Dr. Zahid Mahmood in a telephonic conversation with Dr. Sajid Mahmood, in-charge of Central Cotton Research Institute.
In the meeting, Chairman Chaudhary Waheed Arshad discussed the problems of the cotton ginning industry, especially the charges fixed in the electricity bills imposed by Nepra and said that this draconian tax should be removed immediately so that the ginning industry, which was suffering badly earlier, could get back on its feet. Will stand on and play an important role in the development of the country.
On this occasion, the Speaker also presented the budget proposal on behalf of the PCGA to the Federal Minister. On this, Federal Energy Minister Khurram Dastgir said that the government has imposed these taxes and duties due to pressure from the IMF.
The importance of cotton and the cotton ginning industry cannot be overstated. Furthermore, the minister promised that he would include their proposal in this budget and eliminate the fixed duty imposed on the ginning industry.
Pakistan Cotton Standards Institute and Pakistan Cotton Brokers Association are actively working for the grading of cotton with the support of Pakistan Cotton Ginners Association.
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