A look at Pakistan's cotton market
The local cotton market turned bearish on Tuesday with thin trading volumes. Cotton analyst Naseem Usman told that the price of cotton in Sindh is Rs 17,500 to Rs 21,000 per head. The rate of cotton in Punjab is Rs 18,000 to Rs 20,000 per head.
The rate of footi in Sindh ranges from Rs 7,000 to Rs 8,300 per 40 kg. The rate of footi in Punjab ranges from Rs 7,000 to Rs 9,200 per 40 kg. The spot rate remained unchanged at Rs 19,800 per head. Polyester fiber was available at Rs 355 per kg.
Prime Minister Shehbaz Sharif has given in-principle approval to fix the price of cotton at Rs 8500 per 40 kg for this year. The approval was given during a review meeting of the Agriculture Task Force chaired by Prime Minister Muhammad Shahbaz Sharif in Lahore on Monday. It was informed during the meeting that last year there was a drastic reduction in cotton production due to floods, rains, shortage of water in the canal and fertilizer crisis.
The total production of cotton this year is estimated at 12.77 million bales, while not only the area under cotton cultivation but also the yield per acre is expected to increase substantially. The Prime Minister said that the provincial governments should ensure provision of fixed price for cotton to the farmers. He also directed the central government to provide all possible assistance to the provincial governments in implementing the fixed support prices.
