The prices of cotton increased by Rs 200/per maund. The prices of cotton increased in international market due to decrease in the intensity of America and China trade conflict. The prices of cotton increased due to imposition of sales tax on cotton as a result of which there is uncertainty in the ginning sector.
In the local cotton market during the last week the prices of cotton increased by Rs 150 to Rs 200 due to the interest of spinning and textile mills in buying and decrease in the supply of Phutti.
The prices of Phutti increased by Rs 50 to Rs 100 per 40kg during the week because the cotton picking was stopped due to the Muharram holidays. The trading remains slow but after the increase in supply of Phutti after Thursday the trading volume also increased. The rate of Phutti in Sindh remained low due to the rains. The rate of cotton in Sindh is in between Rs 7700 to Rs 8150. The rate of Phutti is in between Rs 3300 to Rs 3650 while the rate of Khal and Banola remained low.
The rate of cotton in Punjab is in between Rs 8350 to Rs 8650 due to high quality while the rate of Phutti is in between Rs 3400 to Rs Rs 3850 per 40 kg. The rate of cotton in Balochistan is in between Rs 8300 to Rs 8350 per maund while the rate of Phutti is in between Rs 3900 to Rs 4300 per 40kg. The rate of cotton in Balochistan has increased by Rs 200 to Rs 300. The Spot Rate Committee of Karachi Cotton Association has increased the rate of cotton by Rs 100 per maund and closed it at Rs 8200 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that due to the news of decreasing of trade conflict China and America the trend of increase in the prices of cotton was seen in international cotton market.
According to the weekly report of New York cotton there is a decrease in the export and increase of three American cent was witnessed in the Rate of Promise (Waday Ka Bhao) of USDA while the rate of cotton increased in China and India. The increasing trend was seen in the prices despite negative monthly report because ice is breaking in trade conflict between China and America.
Naseem Usman said that during the last week rains cotton crop was effected in cotton growing areas especially standing crops in Sindhi were more hit by rains as compared to Punjab. The quality and quality both were effected. On the other hand news were coming of attack of viruses and insects on crop especially Milli Bug, Pink Bollworm and White Flies.
The agriculture officers are giving directions to the farmers that they should use insecticide. It is expected that this year cotton crop will be 12.0 million bales while some people related to cotton crop are saying that crop will be less. Up till now these all are estimates but real estimates will come in first week of October.
Moreover, to increase the cotton production and bring modernity in technology third international conference between China and Pakistan was concluded in China last week. According to China net the conference was attended by more than 100 cotton experts. The success of the conference will not only increase the cooperation between the two countries as well as scientific and technical ties will also be strengthened.
President of Pakistan Businessman and Intellectual Forum (PBIF) Mian Zahid Hussain has demanded from the government that government should fix the support price of cotton inorder to increase the production of cotton in the country. After the announcement of fixing the support price farmers will take interest in increasing the production of cotton. The textile sector is suffering due to the less cotton production and they spend foreign exchange to import cotton from abroad due to which our economy is in loss.
The FBR has imposed 10 percent sales tax which is paid by textile sector through ginners due to which there is uncertainty in the market, especially uncertainty prevails among ginners because mills are not cooperating. In this situation ginners had to arrange money and they blocked their money. Ginners who don't have the capacity to arrange money are facing problems.
Chairman PCGA Mian Mahmood Ahmad had talked to the chairman FBR and related officials a few days ago in which they assured him that 10 percent sales tax will be directly collected from mills but up till no notification was issued in this regard. In this situation, the ginners were not happy.
Elections were held to elect 15-member governing body of PCGA for the year 2019-20. After many years there was a tough contest between two big panels. The total number of voters was 696 ginners out of which 149 ginners are from Sindh and 547 from Punjab. The results were not announced till the filing of this report. Moreover textile sector is passing through extreme crisis time especially it is under extreme financial crisis.