KARACHI: Cotton rate witnessed overall stability in the last week. trading volume; Although it was very less. The crisis in the textile sector is deepening. Positive measures needed to increase cotton cultivation; However, at present the condition of cotton sowing is satisfactory.
In the domestic cotton market, the prices remained overall stable during the last week. The trading volume remained low due to low interest in cotton procurement by textile and spinning mills.
Actually, there is an atmosphere of despair in the textile sector because the government is not paying attention to the problems of this sector. The government has already withdrawn incentives given to the textile sector due to pressure from the International Monetary Fund (IMF).
It is feared that the country's exports will fall further as a result of uncompetitive energy and gas rates, which have already pushed the textile sector into dire straits, badly affecting the cotton business.
However, effective steps are being taken by the government to increase cotton production. The government has timely fixed the intervention price of fruit at Rs 8500 per 40 kg. It has also announced several incentives for cotton farmers, while rice cultivation has been banned in most cotton-growing regions.
According to the information received from the cotton producing areas, at present the sowing of cotton is said to be satisfactory. According to experts, if the weather is favourable, cotton production is expected to increase. This year the government has set a target of one crore twenty seven lakh seventy thousand bales of cotton production.
The rate of cotton in Sindh ranged from Rs 18,000 to Rs 20,500 per head. The rate of footi which is available in small quantity is 7 thousand to 8500 rupees per 40 kg. Cotton rates in Punjab range from Rs 19,000 to Rs 21,000 per head, while footy rates range from Rs 7,500 to Rs 9,000 per 40 kg. Khal, cottonseed and oil remained unchanged. The Spot Rate Committee of the Karachi Cotton Association kept the rate unchanged at Rs 20,000 per head.
According to Naseem, president of the Karachi Cotton Brokers Forum, there was volatility in the international cotton markets. New York cotton futures trading saw a lot of volatility in its rates. The rate first fell to a low of 76 US cents per pound before rising to a high of 85 US cents per pound and closing at a low of 80.53 US cents per pound.
The overall bearish trend in cotton rates in India continues. According to the estimates of the Cotton Association of India, there will be a short production of 298.35 lakh bales in the 2022-23 season. The reason for the lower production is that Maharashtra, Telangana, Tamil Nadu and Orissa will produce less cotton.
According to the USDA's weekly export and sales report for the year 2022-23, about two lakh forty six thousand eight hundred bales were sold, which was 7 percent more than the previous week.
China topped by purchasing one lakh six thousand two lakh bales. Vietnam bought 77,800 bales and stood second. Bangladesh bought 36,000 bales and came in third. Turkey bought seventeen thousand six hundred bales and stood at the fourth position. Pakistan bought 9,200 bales and stood fifth. Twelve thousand eight hundred bales were sold in the year 2023-24.
Nicaragua topped the list buying 4,400 bales. Peru was second with 3,200 bales. Mexico bought 3,100 bales and ranked third. Turkey bought 2,200 bales and ranked fourth.
Cotton cultivation is booming in Punjab and 50% area under cotton has already been brought under cultivation, Agriculture Secretary, Punjab Iftikhar Ali Shahu at APTMA office, Lahore for development of cotton and improvement in textile industry said in a meeting held
Secretary Energy Naeem Rauf, Patron APTMA Gohar Ejaz, President APTMA Hamid Zaman, Director General Agriculture (Extension) Dr Anjum Ali and other stakeholders were present. Speaking on the occasion, Shahu said that the Punjab government is committed to the revival of cotton and all resources are being used to achieve the cotton production target. The government has fixed the pre-sowing support price of cotton at Rs 8500 per head, which will benefit cotton farming. Apart from this, farmers will get a subsidy of Rs 1,000 per bag on the seeds of selected approved varieties for 0.6 lakh acres. In addition, subsidies worth billions of rupees are being given on phosphorus and potash fertilizers to reduce the production cost of farmers.
He further said that this year production competitions are being organized among cotton farmers at provincial and district level, in which cash prizes worth lakhs of rupees are being given. He further said that the Irrigation Department is taking special measures to supply canal water to the cotton areas. Field workers are available to support the farmers for technical guidance. Teams of the Agriculture Department are working from village to village to promote the cotton crop.
On this occasion, APTMA Patron Gauhar Ejaz welcomed the seed supply and subsidy for farming. He stressed on the use of IT to increase the area under cotton cultivation.
There are reports of import queries of apparel from the United States and the European Union but there are also some problems due to the delay in agreement with the International Monetary Fund (IMF).
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