Small quantities new crop cotton (August 2017 / July 2018) is also selling in the market. A sale of 200 bales of new crop cotton from Burewalla in Punjab reportedly produced from seed cotton from Sindh was finalized at Rs 7000 per maund (37.32 Kgs) for delivery from tenth to the 15th of June, 2017. Current crop (2016/2017) prices of cotton reportedly ranged from Rs 6500 to Rs 7000 per maund, according to the quality. New crop cotton (August 2017/July 2018) in Punjab is reported to be coming up well but new crop from Sindh is slightly delayed due to shortage of water. However, it is said that later on Sindh output may also pick up though it is presently lagging behind. The nearby prices in the global cotton market are said to be firm.
A couple of factories in Shahdadpur in Sindh and Burewalla in the Punjab may start pressing of new cotton from the tenth to 15th of June 2017. Prospects of new crop cotton (2017/2018) are reported to be good in China, the United States and India. The All Pakistan Textile Mills Association (APTMA) rejected the federal budget 2017/2018 last Wednesday due to very small allocation of Rs 5 billions against Rs 180 billions announced by Prime Minister Nawaz Sharif under the export growth package announced earlier. APTMA Chairman Amir Fayyaz was very disappointed at the meagre amount of Rs 5 billion announced in the budget to support and revive the textile industry. Amir lamented that textile industry plays a large part in the country's economy but it is being neglected. Thus Pakistan's exports and employment are suffering seriously. Chairman Amir Fyyaaz announced his rejection of the federal budget in the presence of (APTMA) group leader Gohar Ijaz and Vice Chairman Ali Pervaiz.
The Karachi Cotton Association (KCA) Chairman Muhammad Atif Dada has wholeheartedly welcomed the decision of the federal government announced in the recent federal budget on 26-05-2017 that in order to stabilise cotton prices in the country, a system of Hedge Trading for the domestic cotton will be initiated in consultation with all the stakeholders. Chairman KCA explained that cotton market involves tremendous risk which necessitates some system to introduce price insurance to stabilise the cotton prices due to their volatility and fluctuations which requires adopting Cotton Hedge Trading.
The Chairman KCA added that Hedge Trading performs an economic function by providing a cover to price fluctuations. KCA has the necessary experience and expertise to run a Cotton Hedge Market and has pleaded for the reopening of the Hedge Market under its auspices several times over the past many years. KCA has the necessary infrastructure, testing machinery and the desired instrumentation for running cotton Hedge Trading with the participation of all the stakeholders including ginners, spinners, exporters and growers.
The KCA should be allowed to resume Cotton Hedge Trading as soon as possible for the overall benefit of cotton trade. On the global economic and financial front, major events like the massacre event of 22nd of May, 2017 at Manchester which killed numerous people followed by president Donald Trump's remarks on America following an isolationist policy are threatening the world socioeconomic system so painstakingly built by America, United Kingdom, Germany and the likes of France that has succeeded systemically for nearly three quarters of a century.
It is now increasingly clear that president Trump wants to implement many if not most of his campaign promises quite a few of which were earlier deemed as his electoral ploys. In this regard, political upheaval continues to rule at the White House. His recent meeting with Chancellor Angela Merkel a few days ago in Germany reportedly resulted in a war of words as he clashed with the Chancellor as transatlantic tensions rose in a unprecedented manner.
It all started when president Trump accused Germany of unfair trade relations and also not supporting Nato expenses fairly. Moreover, Trump also appeared annoyed over a large trade gap America has with Germany. Quite expectedly, Germany launched scathing criticism of president Trump blaming America for its shortcomings. As was expected, the German Foreign Minister Sigmar Gabriel launched a scathing criticism and is said to have unleashed a barrage of critical shots at Trump's administration. Gabriel blamed Trump of weakening the West. Germany has also lambasted Trump's protectionist policies. It is not only Germany which has seen the ire of president Trump, but relations between the United Kingdom and America stand fractured.
Another target president Trump has chosen for his regular volleys of tirades is the Climate Agreement which was finalised on the fifth of October, 2015. The basic idea of the Paris Agreement is to bring all the nations around the world together to fight the ill effects of Climate change, including providing assistance to the developing countries by controlling rise in global temperature also reducing it to lower levels. However, president Trump is said to be poised to opt out of the Climate Agreement. Mr. Trump believes that it would cost the American economy trillions of dollars without any tangible or corresponding benefit.
Besides the problems originating from the envisaged American change in its business or corporate policies with certain countries, some other countries are in dire straits around the world. Venezuela is reported to be in a crumbling state due to its economic and political policies and remains on the edge. Iran is said to be suffering mass unemployment. Yemen is said to be facing total collapse, while Libya is bursting at its seams. Brazil and South Africa are also facing economic downturn. A new global economic order may yet evolve which may stabilise the diverse economies more equitably.
Copyright Business Recorder, 2017