Karachi: Stability was observed in cotton prices last week. trading volume; However, little continued to happen. The New York cotton rate was increased. Finance Minister Ishaq Dar has directed the concerned officials to solve the problems of the textile sector on priority basis to address the long standing grievances of the textile sector.
All Pakistan Textile Mills Association (APTMA) is planning to start a pilot project for research and development to develop activated cotton seed and increase cotton production. Cotton sowing is in full swing. The condition of cotton crop is satisfactory. The concerned institutions are actively working.
Cotton prices remained steady in the local cotton market during the last week but trading volumes were thin as textile mills continued to face severe distress.
Textile sector leaders are complaining of 'step-motherly treatment'. They are also complaining about not being heard by the government.
There is uncertainty in the local textile sector after the government withdrew incentives given to the textile sector, including gas and electricity at subsidized rates, issuance of sales tax refunds, abnormal increase in interest rates. The deepening financial crisis and recession in the US and European markets are also adversely affecting the textile sector. In this way, the textile sector is in serious trouble, which also affects the cotton market.
Cotton production in the country this year is less than 50 lakh bales compared to previous years, yet farmers have a stock of more than 1.5 lakh bales till the coming of the new season. Some textile mills are finalizing deals of 100 or 200 bales on credit basis.
The new season is about to start and in fact the arrival of the new cotton crop has partially started. As per the information received, cotton sowing is satisfactory. Experts believe that if weather conditions are favourable, cotton production is expected to exceed one crore bales, though the official target has been fixed at one crore twenty-seven lakh seventy thousand bales. Concerned government agencies are actively working to increase cotton production.
The rate of cotton in Sindh ranged from Rs 18,000 to Rs 20,500 per head. The rate of footi available in limited quantity was Rs 6700 to 8000 per 40 kg. The rate of cotton in Punjab ranged between Rs 19,000 to Rs 21,000 per head. rate of khal, banola and oil; Stay still though.
The spot rate committee of the Karachi Cotton Association kept the cotton rate unchanged at Rs 20,000 per head.
Naseem Usman, president of Karachi Cotton Brokers Forum, said that the futures trading rate of New York cotton continues to be in an uptrend, while the market in India remains bearish.
According to USDA's weekly export and sales report, one lakh thirty two thousand bales were procured for the year 2022-23.
China topped the list by purchasing 62,000 tonnes of bales. Vietnam bought 24,000 bales and finished second. Pakistan bought 18,900 bales and stood third. Twenty eight thousand one hundred bales were procured for the year 2023-24. Bangladesh topped the market by purchasing 12,000 bales. South Korea was second with 6,600 bales. Turkey bought 4,400 bales and came in third.
Federal Minister for Finance and Revenue Mohammad Ishaq Dar held a meeting with a delegation of All Pakistan Textile Mills Association (APTMA) at the Finance Department, which was patronized by Dr. Gohar Ejaz. APTMA President Asif Inam, SAPM Finance Tariq Bajwa, SAPM Revenue Tariq Pasha, Punjab Energy Minister Syed M Tanveer, Secretary Finance, Secretary Power, Secretary Petroleum, Chairman FBR, and other representatives of APTMA and officials of Finance Department attended the meeting participated in . Gauhar appreciated the government for supporting the textile sector by fixing the minimum price for cotton.
He briefed the Finance Minister on the significant contribution of the textile sector to the country's economic growth and development through revenue generation, generation of employment opportunities and enhancement of Pakistan's exports. He apprised the Finance Minister about the issues being faced by the textile industry with regard to supply chain, regulatory issues with respect to imports and exports, and issues related to energy as well as supplies to various plants in the Punjab province.
The delegation also discussed about the existing disparities between the provinces with respect to energy prices and supplies and sought the support of the Minister in this regard.
Finance Minister Dar acknowledged and appreciated the contribution of the textile sector in the economic well-being of the country. He committed the government to provide maximum facilitation to the textile sector to strengthen the export sector and enhance Pakistan's export-led growth.
In addition, the Finance Minister also directed the concerned officers to resolve these issues on priority basis. The APTMA delegation thanked the Finance Minister for extending support to resolve their issues on time.
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