In the was seen. Needy textile and spinning mills showed their interest in buying. The reason behind buying of textile and spinning mills is record high prices of dollar but after the flow of dollar increased a little bit stability was seen the price of cotton as demand of cotton was also increased a little bit. The price of cotton in Sindh and Punjab is in between Rs 7600 to Rs 9000 per maund.
The Spot Rate Committee of Karachi Cotton Association has increased the rate of cotton by Rs 100 and closed it at Rs 8700 per maund. Chairman Karachi Cotton Brokers Forum told that ginners had left the stock of only 4 lac bales which will be sold accordingly but the expectations of increase in the prices of cotton and cotton seed due to historic high prices of dollar had not full filled. More over, textile and spinning mills owners were unable to sell their stocks due to the expectations of increase in the prices of yarn and textile products and now they had the stock of yarn which has created financial crunch in the market.
On the other hand according to the information received from the lower areas of Sindh the arrival of Phutti has started. The Phutti was sold at Rs 3800 to 4000 in the areas of Kanari and Juddu. It is expected that arrival of Phutti will increase from the middle of June. The sowing of cotton is satisfactory this year but due to rains and hailstorms in some areas of Punjab the cotton has sowed again however the sowing season will continue till the month of June. The officials of concerned departments are active for increasing the production of cotton.
He also told that there is a fluctuation in the prices of cotton in international market. There is a fluctuation in the rate of cotton in New York Cotton Market. The rate of cotton increased in New York Cotton Market after decreasing. However, mixed trend was seen in Chinese cotton market. According to the media reports government has decided to take back the subsidy from the zero rated five industries which includes textile industry.
The news of abolishing subsidy has created stir in the textile industry. According to the industrialists this decision will affect the exports and unemployment will be increased. They also showed their concern that due to this decision many industries of Punjab will close as well as this will also affect the industries of Sindh.
The sources said that representatives of textile sector hold meetings with Advisor to PM for Commerce, Investment, Industries, Production and Textile Abdul Razak Dawood, Advisor to PM on Finance, Revenue and Economic Affairs Abdul Hafeez Sheikh and Chairman Federal Board of Revenue Shabbar Zaidi and talked them on the issue.
Group leader All Pakistan Textile Mills Association Gohar Ejaz said that they briefed the new economic team regarding the difficulties faced by exporters. He prayed that God save our industry. He stressed his hope that issue will be solved positively. He also said that due to this act of the government our exports of 24 billion dollars will decrease by three billion dollars and it will be only 21 billion dollars so government should take this issue seriously.