In the local cotton market prices of cotton remained stable. Although the trading volume remained low due to the cautious buying of textile and spinning mills, ginners demanded higher prices of good quality cotton due to which millers are buying the commodity according to their needs. The delivery of imported cotton of many spinning and textile mills has started which is the reason of low trading volume.
Many ginners are facing problems due to low trading volumes. At present, traders are doing their business on borrowing while the ginners are waiting for the increase in the prices. Overall the trading volume is low. The new season will start in three to four months. Ginners have the stock of 1.05 million bales out of which only half are of good quality.
The prices of cotton in both Sindh and Punjab remained Rs 7000 to Rs 9000 per maund while the price of Seed cotton (Kapas/Phutti) is from Rs 3000 to Rs 3600 per 40Kgs in both Sindh and Punjab. Cotton in Balochistan is available at the rate of Rs 7800 to 8100 per maund while the ginning factories were almost closed in Balochistan.
The Karachi Cotton Association (KCA) spot rate committee decreased the spot rate by Rs 100 to Rs 8600 per maund. Karachi Cotton Brokers Forum said that a mixed trend was seen in the international market. According to experts, the US-China trade conflict has a negative impact on the world business. China is importing cotton from India due to this conflict. Due to import of cotton by China from India the prices of cotton remained stable in India which the prices of this commodity show an upward trend in the USA.
Moreover, due to the rains there is a delay in harvesting of wheat while according to the information received from Interior Sindh the sowing of cotton has partially started while the partial sowing season in Punjab is expected to begin next month.
Prime Minister Imran Khan has shown his resolve of increasing the production of cotton by 15 million bales due to which the relevant departments have started their efforts. Punjab Agriculture minister Malik Noman Ahmad Langrial while speaking at Agriculture House last Wednesday expressed his optimism about cotton output. In his statement Noman said that relevant departments should utilize all their resources to increase the cultivation land of cotton in order to increase the cotton production. He said that the federal government should announce the support price of cotton as early as possible and cotton should be bought through Trading Corporation of Pakistan so that the cotton farmers should get reasonable amount of their crop.
Advisor to Prime Minister on Commerce Abdul Razak Dawood said that China will import rice, sugar and cotton yarn from Pakistan of worth 1 billion dollars under Pakistan China Free Trade Agreement. The export of rice from Pakistan has already started. The Cotton Yarn Exporters said that China is importing yarn of 10, 16 and 21 count from Pakistan. It is hoped that China will import more cotton from Pakistan under PCFTA.
Earlier, Pakistan Cotton Ginners Association chairman Mian Mahmood Ahmad said that millers are not paying the outstanding amount to ginners; due to which ginners-millers relationship came under severe strains.
The PCGA has asked ginners to send the list of millers so that association should contact the millers. Mahmood said that ginners have sent the claim of Rs 700 million to the association. More ginners are in contact. It is expected that outstanding amount may increase. Some ginners and millers are in contact and talks are underway between them so they don't approach the PCGA.