Karachi: There has been a decrease in the price of cotton by Rs.1000, cotton by Rs.2000, banola by Rs.1000 and oil by Rs.5000.
However, textile exports have seen a decline of 20 per cent. There is a slowdown in both the local and international textile markets.
However, cotton production is expected to increase if weather conditions remain favourable. Textile exporters have rejected the report of the Reforms and Revenue Collection Commission (RRMC). Apparel Forum President Javed Bilwani termed these proposals as the last nail in the coffin of the textile industry.
All Pakistan Textile Mills Association (APTMA) has congratulated the Chief Minister Punjab on the successful cotton campaign. The KCA in its budget proposals stressed the need to protect the interests of all stakeholders in the cotton trade.
The trading of new crop cotton has started in the local cotton market in the last week of May. Presently around 15 ginning factories have partially started business in Sindh and Punjab. The arrival of futti is also increasing day by day.
It has rained in most of the cotton growing areas of Sindh and Punjab in the last few days. Hail also occurred at many places, but at present there is no news of damage to the cotton crop. The rain is said to be beneficial for the crop. If there is excess rainfall, re-cultivation of cotton may be required in some places.
Ginners have a stock of about one lakh bales of old cotton which are being sold from time to time. At present, it is too early to say anything about the cotton crop. At present, 70 to 80 percent of the crop has been cultivated in many areas. Related government departments are active. State of the textile sector; However, not good. The industry is facing issues of sales tax refunds, gas, energy, interest rates and non-issuance of refunds. Apart from this, the textile sector has also been badly affected due to huge financial crisis in the market and recession in the international markets and fluctuations in the value of the dollar. The textile sector is constantly pleading with the government to solve their problems immediately, but the government is constantly adopting delay tactics.
The price of new cotton crop opened at Rs 21 thousand per head but after decreasing by Rs 1 thousand per head closed at Rs 20 thousand per head. The price of fruit opened at Rs 11,000 per 40 kg and then closed at Rs 9,000 with a fall of Rs 2,000. Banola, after opening at Rs 4,500, closed at Rs 3,500, down by Rs 1,000. Oil prices closed at Rs 13,000, down by Rs 5,000 after opening at Rs 18,000.
The spot rate committee of the Karachi Cotton Association fixed the rate at Rs 20,000 per head.
Naseem Usman, president of the Karachi Cotton Brokers Forum, said that fluctuations were seen in the futures trading rate of cotton in the international markets. According to the weekly export and sales report for 2022-23, two lakh sixty nine thousand eight hundred bales were sold. China topped by purchasing two lakh twenty one thousand seven hundred bales. Turkey bought 20,800 bales and came in second. Vietnam bought 13,700 bales and ranked third.
Seventy lakh sixty bales were sold for the year 2023-24. Türkiye topped the list by buying 43,500 bales. El Salvador came second with 20,900 bales. China bought 8,800 bales and stood third.
Exporters in Pakistan have raised objections about the proposed tax on late recovery amount by the Reforms and Revenue Mobilization Commission (RRMC) for the financial year 2023-24. The proposal suggests imposition of income tax on exporters who fail to bring in foreign exchange within a specified time period, thereby profiting on foreign exchange.
The RRMC's recommendations to change the existing final tax regime to minimum tax regime for exporters and levy additional tax on foreign exchange earnings have been criticized by Muhammad Javed Bilwani, chief coordinator of the Value Added Textiles Association Forum. Bilwani underlined that these recommendations were made without consulting exporters and other relevant stakeholders. They argued that imposing general tax regulations on exporters would discourage exports and prove futile in achieving the objective of addressing the trade balance.
According to statistics, exports of textile products declined by 15% to $15 billion in the eleven months of this fiscal year; Whereas in the same period of the last financial year, exports were $ 17.61 billion.
The success of Punjab's cotton campaign will greatly affect the textile sector of Pakistan and the entire country. APTMA acknowledges the Punjab Government's firm commitment to improve cotton production and secure Pakistan's position as a leading player in the global textile market. This not only ensures our self-sufficiency but also reduces Pakistan's dependence on cotton imports - saving $1.5 billion in import bills and boosting the country's economy.
In its budget proposals sent to the finance ministry, the KCA urged the government to instruct commercial banks to expeditiously open necessary letters of credit (L/C) at the request of importers of raw cotton, i.e. local textile mills, to sell imported raw cotton. Able to meet your requirement in time.
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