Karachi: Cotton prices witnessed an uptrend in the cotton market and the spot price was increased by Rs 500 per head. With the cotton crop being satisfactory, the supply of footy is increasing day by day.
However, import contracts for 6 million bales of cotton worth $2 billion have already been signed. Only Rs 147 crore has been allocated in the budget for better production of cotton.
President of Cotton Ginners Forum, Ahsanul Haque has said that concessions were given in the budget for the agriculture sector, but no relief was given to the cotton ginning sector.
In the local cotton market, ginners offloaded cotton last week, which led to an uptrend in the market. New cotton crop deals were fixed at Rs 20,500 to Rs 21,300 per head after rising from Rs 8,00 to Rs 1,200 per head.
The rate of foot was 9500 to 10000 rupees per 40 kg. Fruity rates saw an increase of Rs 7,00 to Rs 1,000 per 40 kg with several ginning factories partially working. Market; However, a downward trend was observed on Saturday evening.
At present cotton spinners are not interested in selling cotton before Id-ul-Azha and before rains due to exceptionally good quality of cotton, which is the reason for increase in the price of cotton.
Cotton prices in Sindh and Punjab ranged between Rs 20,500 to Rs 21,300 per head after an increase of Rs 8,00 to Rs 12,00 per head. The price of futi is between Rs 9500 to Rs 10000 per 40 kg after an increase of Rs 1000 to Rs 1200 per 40 kg. The rates of Khal and Banola are showing a rising trend. The spot rate committee of the Karachi Cotton Association increased the spot rate by Rs 5,00 per head and closed it at Rs 20,500 per head.
Naseem Usman said that overall the international cotton market remained stable. According to USDA's weekly export and sales report for the year 2022-23, four lakh eighty thousand four hundred bales were sold.
Meanwhile, cotton sowing in the country is currently completed in 2.588 million hectares against the target of 2.767 million hectares for the crop season 2023-24 for exports as well as meeting the industrial and commercial requirements of the local industry.
The farming community in the crop growing areas has completed cultivation of more than 93.53% of the total area earmarked for the season to achieve a production of 12.77 million bales by the first week of this month (June).
In Punjab, sowing of the crop has been completed in 95.11% area on 1.920 million hectare against the fixed target of 2.019 million hectare for production of about 8.336 million bales during the current season.
Meanwhile, Sindh has achieved more than 84.49 per cent of its set target and has sown 0.5678 million hectares against the set target of 0.672 million hectares, while the cotton production target for the province has been set at 4.00 million bales.
During the season, the Khyber Pakhtunkhwa (KP) and Balochistan provinces saw an increase in cotton sowing as both the provinces achieved 113 per cent and 132.24 per cent of their planting targets, respectively.
The Economic Coordination Committee (ECC) of the Cabinet has fixed the intervention price of cotton (futti) at Rs 8,500 per 40 kg to revive cotton production, stabilize the domestic market and ensure fair returns to farmers in the country.
Farmers' per acre income is witnessing a huge reduction due to a record rise in the cost of production of textile mills and a record fall in cotton prices due to non-functioning of ginning factories.
Apart from this, only fourteen crore seventy lakh rupees have been kept in the federal budget for better production of cotton.
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