Karachi: Last week, an unprecedented fluctuation of Rs 3,000 per maund was seen in cotton rates. Significant fall in the US dollar rate resulted in a significant decline in the spot rate by Rs 3,000 per maund. The decline in New York cotton prices coupled with satisfactory cotton production also led to the decline in cotton prices.
Whitefly attacks have been reported in some cotton growing areas in Pakistan and farmers should be made aware of this.
Pakistan Cotton Ginners Association President Waheed Arshad has said that the revival of the textile sector is the revival of the national economy. He said that due to heavy tax levy by TMA, fifty percent of the ginning factories are idle and farmers are facing difficulties.
Cotton prices declined from Rs 20,000 to Rs 21,000 per maund to Rs 17,000 to Rs 17,500 per maund and then touched Rs 18,000 to Rs 19,000 per maund. Government intervention saw a significant decline in the value of the US dollar, while New York cotton futures trading rates also remained relatively low.
Textile spinners were engaged in cautious buying as they faced the threat of interest rate hikes in addition to the continued rise in energy prices. They were also concerned about rising gas prices and supply shortages.
According to the information received from various areas, the cotton crop is said to be satisfactory. However, farmers should be cautious as cotton crops have been attacked by whitefly in some areas.
Cotton rates in Sindh touched Rs 17,500 to Rs 18,000 per maund after falling sharply from Rs 2,000 to Rs 2,500 per maund. The rate of footi is Rs 8,800 after a decline of Rs 5,00 to Rs 7,00 per 40 kg.
Cotton rates in Punjab range between Rs 18,500 to Rs 19,000 per maund while cotton rates range between Rs 8,000 to Rs 9,500 per 40 kg. Cotton rates in Balochistan range between Rs 17,000 to Rs 18,000 per maund while cotton rates range between Rs 9,000 to Rs 10,000 per 40 kg.
The Spot Rate Committee of Karachi Cotton Association reduced the spot rate by Rs 3,000 per maund and closed it at Rs 18,000 per maund. There is also a bearish trend in the prices of cottonseed, cake and oil.
Karachi Cotton Brokers Forum Chairman Naseem Usman has said that a mixed trend was seen in the cotton rates in the international cotton market. New York cotton futures trading rate closed at 85.91 US cents after reaching 89 US cents per pound.
According to the weekly export and sales report for 2023-24, 85,100 bales were sold. Mexico remained on top by purchasing 28,900 bales. Costa Rica came in second with 22,400 bales. China bought 16,200 bales and stood third. Pakistan purchased 6,300 bales and stood fifth. About 600 thousand bales were sold for the year 2024-25. Pakistan remained on top by purchasing 1100 bales. Mexico came in second by purchasing 4,400 bales.
However, Pakistan Towel Manufacturers Association Senior Vice President Syed Usman Ali has expressed serious concern over the statement of the acting federal commerce minister that more than 1,600 textile factories have been closed in the country during the last 16 months.
Everyone knows that the textile sector is the backbone of our economy. It is a valuable source of foreign exchange earnings, an important generator of employment which is driving economic activity.
Meanwhile, due to the heavy taxes imposed on the ginning industry, more than fifty percent of the ginning factories in Pakistan are currently idle, causing great difficulty to farmers in selling their cotton and textile mills also do not have abundant supply of cotton. . Also, the country's economy is weakening due to spending billions of dollars annually on importing cotton and edible oil.
Pakistan Cotton Ginners Association President Waheed Arshad while speaking to PCGA officials in Rahim Yar Khan said that currently there is 18% sales tax on ginning industry in addition to income tax, due to which it has become almost impossible. Ginning industry will remain active. He said the federal government should immediately abolish sales tax on cotton seeds and cotton oil as promised.
Apart from this, despite all the weather conditions being in favor of cotton, our cotton crop is facing serious problems, especially the attack of white fly. Under these circumstances, the seed sector has a heavy responsibility to introduce cotton varieties in the coming years which can provide control of whitefly. It is important to introduce such products in the market which are effective against whitefly and are not heavy on the farmer's pocket. The economy of our country is related to cotton and serious attack of white fly as well as pink bollworm on cotton crop can harm our economy.
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