On the other hand textile spinners were of the view that due to the recession in demand and price of cotton yarn the rate comes down while the financial crisis is also increasing. The pressure in the market increases due to the decrease in export of cotton and backing out from the deals by the importers while importers of cotton yarn delaying in opening of Letter of Credit. The cotton in Sindh and Punjab is available from Rs 7000 to Rs 9100 per maund while good quality cotton is sold at Rs 9400 per maund.
The Spot Rate Committee of Karachi Cotton Association has decreased the rate by Rs 50 per maund and closed the rate at Rs 8750 per maund. Chairman Karachi Cotton Brokers Forum said that international cotton market is witnessing bearish trend because of escalating trade war between America and China. The rate of New York Cotton came down at the level of 68 American Cent per pound which is the lowest in the season. The prices of cotton in China remained under pressure while the recession in Indian cotton market remained continued.
Chairman Cotton Association of India Atul S Ganatra while addressing the conference in last November said that this year due to the decrease in production of cotton from the early estimate of 3 crore 65 lac bales the price of cotton in India is expected to increase from Rs 48000 per candy (356 Kg). Although after that the price of per candy cotton increased and reached at Rs 47000 but due to the China and America trade conflict the prices of cotton decreased and reached at the lower level of Rs 45000.
The majority of the international delegates of that cotton conference were of the view that New York Cotton Rate of Promise (Waday Ka Bhao) was 80 American Cent. Few days back New York Rate of Promise (Waday Ka Bhao) reached 77 American Cent but due to America and China trade conflict the rate reached at the lower level of 68 American Cent which proved all estimates wrong.
Atul S Ganatra also told that it is expected that cotton production in India may decrease by 6 lac bales. It is expected that after the reduction of 6 lac bales the expected production of cotton will be 3 crore 15 lac bales while the export of cotton is expected to be 46 lac bales.
Moreover, Federal Minster National Food Security and Research Sahibzada Muhammad Mehboob Sultan while chairing the meeting of Pakistan Central Cotton Committee in Multan last week said that production of cotton will be increased this year and government will try to achieve the target of production of one crore 50 lac bales of cotton according to the resolve of Prime Minister Imran Khan. He said Imran Khan has said that National Agriculture Emergency Program should be implemented to increase the production. He also said that government is trying to make cotton policy in which the reasonable rate of cotton seed should be fixed and certified seeds and medicines should be provided.
While addressing the meeting Federal Secretary National Food Security and Research Dr Muhammad Hashim Popalzai said that department is trying to increase the production of cotton. He also said that Pakistan Central Cotton Committee should be more activated. The meeting was also addressed by Cotton Commissioner Khalid Abdullah.
While Few days back WWF conducted meeting with the farmers belonging to the Lasbela, Rakhni and Barkhan for cultivation of organic cotton in Balochistan. Moreover when Prime Minister Imran Khan announced his resolve to increase the production of cotton and achieve the target of one crore 50 lac bales at that time department of National Food Security and Research announced to fix the rate of cotton seed at Rs 3500 per 40 kg and also announced to buy 5 lac bales through TCP.
The sowing season has started in the areas of Punjab and Sindh but up till now and several meetings were held regarding fixing the price of cotton seed but up till no announcement has been made by the government regarding cotton policy. The sowing season will be completed till May 31. It is necessary that cotton policy should be announced before the completion of the sowing season any delay will affect the sowing of cotton.