In the local cotton market during the last week the increase in buying of cotton by textile and spinning mills the upward trend of increase in prices was witnessed. The prices of cotton increased from Rs 100 to 200 per maund.
The prices of cotton in both Sindh and Punjab remained Rs 7300 to Rs 9100 per maund while the price of Seed cotton (Kapas/Phutti) which is available in small quantity is from Rs 3400 to Rs 3600 per 40Kgs in both Sindh and Punjab. In Balochistan cotton for buying and selling is nearly over.
The Karachi Cotton Association (KCA) Spot Rate Committee increased the spot rate price by Rs 100 per maund and closed it at Rs 8800 per maund. Chairman Karachi Cotton Brokers Forum told that ginners had left the stock of 600,000 bales while some mills who were unable to meet their demands were taking interest in the buying of cotton due to which the prices of cotton were increased. On the other hand there is an increase in the demand of cotton yarn and textile products. The financial crunch is increasing in the markets due to the slow process of payments.
The market is stable after fluctuation in international market. After fluctuation in New York Cotton market the news of cotton import quota by China the prices of Rate of Promise (Waday Ka Bhao) increased from 1.50 American cents to 78.50 American Cent. According to National Development and Reform Commission China has announced import quota of 800,000 ton of cotton which is equal to 47 lac bales of 170 kg. The spinning mills having the capacity of 50,000 or more spindles can apply till March 29, 2019. It is obvious that this news will be helpful in increasing the prices of cotton.
The prices of cotton remained stable in China. The prices of cotton in India after increasing in the starting of the week but witnessed some down ward trend at the end of the week. According to experts the prices of cotton will increase in India because Cotton Association of India has estimated the cut of 700,000 bales in production estimate. According to the association 3 crore 21 lac bales will be produced.
The sowing of cotton in Lower Sindh and in Multan started partially for the next season. The agriculture department is actively working for increasing the production of cotton; especially in Punjab the government has given incentives to the farmers of cotton which shows that government is taking interest in increasing the production of cotton.
Few days back a three day meeting was held in Central Cotton Research Institute in Multan. While addressing the meeting Cotton Commissioner Dr Khalid Abdullah said that government is committed for adopting scientific methods in agriculture including biotechnology as well as in the up gradation of cotton seeds for progress in industrialization.
Director Research Pakistan Central Cotton Committee Dr Tasawar Hussain told that 93 new varieties of cotton including BTO 85 and Non BTO 8 were included by National Coordinated variety trial (NCVT) for testing.
Mean while addressing the meeting held for increasing the production of cotton in Multan on April 12 organised by departments related with cotton agriculture minister Punjab Malik Noman Ahmed Langrial said that ginners had promised to pay premium price ie Rs 200 extra per maund for contamination-free or clean cotton.
The Minister, while addressing the meeting of Cotton Crop Management Group (CCMG) at Central Cotton Research Institute (CCRI) Multan further said that government will give incentives for increase in the production of Cotton Crop.
Senior Pakistan Tehreek-e-Insaf (PTI) leader Jahangir Khan Tareen spoke on the occasion and stated that the federal government would play its role in achieving the cotton production target of 15 million bales set by Prime Minister Imran Khan. On the other hand the commerce ministry and textile ministry has announced to give more incentives to the exporters of cotton yarn according to which yarn exporters don't need certification from All Pakistan Textile Mills Association (APTMA ) for the export of cotton yarn.