Karachi: Cotton prices continued to rise during the last week. The spot price increased by Rs 300 per head. The production of cotton was twenty lakh fifteen thousand bales. Production till August 31 is expected to be 12.6 lakh bales, up 82% from around 28 lakh bales in the same period last year.
Total production is expected to exceed 10 million bales. However, the textile sector has been badly affected by the gas shutdown. There has been a decline of about 14.44 percent in textile exports. Measures should be taken to make the export industry profitable.
In the domestic cotton market, cotton prices continued to rise, besides increased trading volume during the last week on increased interest in buying cotton by textile spinners as well as cotton ginners.
However, the news of the appointment of Gohar Ijaz Patron, Patron of the All Pakistan Textile Mills Association, as Minister of Industry and Textiles is a welcome development especially for the textile sector.
Gauhar Ijaz said in a TV interview recently that export industries, especially the textile sector, will not need subsidy for energy. He said that he has a clear economic plan for this. Now given a chance, he will try to solve the energy problem by implementing the proposed scheme.
The price of cotton in Sindh province is between Rs 18,000 to Rs 18,300 per head. The price per 40 kg foot is between Rs 7,300 to Rs 8,400. The rate of cotton in Punjab is between Rs 18,300 to Rs 18,7000 per head, while the rate of foot is between Rs 7,200 to Rs 8,600 per 40 kg. Cotton rates in Balochistan range from Rs 18,100 to Rs 18,300 per head and cotton between Rs 7,400 to Rs 8,500 per 40 kg. prices of khal, cottonseed and oil; however, remained stable.
The spot rate committee of the Karachi Cotton Association increased the spot rate by Rs 300 per head and closed it at Rs 18,300 per head.
Naseem Usman, chairman of Karachi Cotton Brokers, said that the price of cotton has declined in the international cotton market. After the ups and downs, the futures trading rate was around 83.62 US cents.
According to the USDA's weekly export and sales report, one lakh eighty-six thousand and three hundred bales were sold for the year 2023-24.
China remained on top by purchasing one lakh thirty eight thousand four hundred bales. Turkey bought 13,200 bales and stood second. El Salvador was third with 10,500 bales.
If the supply of expensive electricity and gas to the national textile industry and export sector continues, Pakistan's textile exports will decline due to the costlier textile of Bangladesh, Sri Lanka and India.
He said that due to any uncertain economic situation in Pakistan, the confidence of domestic and foreign investors is immediately shaken, but it takes years to recover.
However, Syed Usman Ali, president of the South Circle of Pakistan's Towel Manufacturers Association, expressed serious concern about the cut in two-day weekly gas supplies to export units in Sindh and Balochistan.
SSGCL has announced a two-day gas shutdown for all industrial units and captive power plants in Karachi on a weekly basis and this gas shutdown has deepened the woes of exporters in Pakistan's economic hub.
The gas cut, in particular, adversely affected the manufacturing process of textile export-oriented units.
According to the latest fortnightly data released by the Pakistan Cotton Ginners' Association (PCGA) on Friday, cotton arrivals in Pakistan saw a significant increase of 48% on August 15 as compared to August 1.
Till August 15, cotton arrivals in Punjab stood at 0.64 million bales as compared to 0.39 million bales as on August 01, 2023, an increase of 64%.
Similarly, cotton arrivals in Sindh stood at 1.48 million bales, as against 1.04 million bales recorded in August 1, an increase of 0.44 million bales or 42%.
However, Karachi Cotton Brokers Forum President Naseem Usman made an interesting comparison of cotton production, saying that the production of cotton in the country till August 31 last year was 15 lakh 39 thousand 710 bales, now till August 15, cotton production should be 21 lakh 15 thousand. Has gone. And there are 4333 bales, so this year's cotton production is five lakh seventy five thousand 723 bales more than last year's cotton production.
If the production of 16 days in the month of August is assumed to be about 7 lakh bales, then the production would be about 28 lakh bales.
According to this calculation, by August 31, the production of cotton in the country will be 82 percent i.e. about 12.50 lakh bales more than the production on August 31 last year. If weather conditions are favourable, the total production can exceed one crore bales.
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