The trend of increase in the prices of cotton remained continued due to the less production of cotton crop and it is expected that fourty lac (4,000,000) bales of worth 1.5 billion dollars will be imported. All Pakistan Textile Mills Association has requested the government to lift import duty on cotton.
In the local cotton market during the last week due to the panic buying of textile mills the increasing trend in the prices of cotton continues. The textile mills increased buying due to the news of damage of cotton crop as a result of which the prices of Phutti also increased. Ginners also increased the rate. Despite all this the demand of cotton increased and the prices of Phutti increased by Rs 200. On the other hand the mills, in order to fulfill their needs have increased the number of import agreement for the import of cotton from abroad. According to the received information up till now mills has signed agreements for the import of 12 lac bales and every day new import agreements are signed.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that if the same situation persists then against the initial estimates of government's estimate of production of one crore 50 lac (15,000,000) bales only one crore 10 lac (11,000,000) bales will be produced then mills has to import 40 lac bales of worth 1.5 billion dollars to fulfill their local needs.
According to the information from Sindh and Punjab cotton crop in Sindhi suffered due to the last rains. Moreover the crop was attacked by viruses and insects and the curing looks difficult and the loss of crop was irreparable. Farmers told that due to the use of low quality seeds the per acre production decreases. On the other hand ginners were facing loss due to the low ginning yield.
In Punjab crop was affected more by unpleasant weather conditions than rains. Moreover, standing crop was attacked by White fly, Pink ball worm and Milli Bug who sucks the juice of the plant due to which crop was effected badly. The people relating to cotton crop were of the view that one crore 10 lac bales will be produced.
During the week the rate of cotton in Sindh is in between Rs 7900 to Rs 8550 per maund while the rate of Phutti is in between Rs 3600 to Rs 4100 per 40 kg while the rate of Khal and Banola also increased. In Punjab the rate of cotton is in between Rs 8600 to Rs 8900 per maund while the rate of Phutti is in between Rs 3700 to Rs 4200 per 40 kg. In Balochistan the rate of cotton is in between Rs 8600 to Rs 8800 per maund while the rate of Phutti is in between Rs 4000 to Rs 4400 per 40 kg while the increasing trend was witnessed in the rate of Khal and Banola.
The Spot Rate Committee of Karachi Cotton Association has increased the rate of cotton by Rs 100 per maund and closed it at Rs 8650 per maund. Chairman Karachi Cotton Brokers Forum Naseem Usman told that in international cotton market the prices of cotton remained stable. The rate of New York Cotton was not increased despite the USDA weekly export report which shows 83 percent increase. The reason is that satisfactory reports are coming from the cotton growing areas of America regarding cotton production. While the cotton production in Brazil and India is also satisfactory.
According to the reports from India sowing of cotton crop will be 20 percent more as compared to last year due to excessive rains. The production of cotton crop in China is satisfactory but due to trade conflict with America trade activities are slow. The buyers don't show much interest in the cotton yarn exhibition held in China.
Moreover, during the week Amanullah Kassim was elected unopposed chairman of APTPMA for the year 2019-20 while Mian Naveed was elected vice chairman for Sindh and Punjab and Rehman Naseem was elected vice chairman for Khyber Pakhtunkhwa. Khwaja Muhammad Zubair was elected chairman of Karachi Cotton Association for the year 2019-20 while Nasir Wahab was elected vice chairman and Asif Bashir was elected as senior chairman.
Muhammad Javed Sohail Rehmani was as elected chairman Pakistan Cotton Ginners Association for the year 2019-20 while Abdul Latif was elected as vice chairman and Haresh Kumar Vedani as senior vice chairman. The meeting of Better Cotton Initiative was held in Lahore which was attended by large number of textile mill owners, cotton brokers, cotton ginners and growers. During their addresses delegates said that BCI cotton will be promoted in the coming years so that good quality cotton will be produced in the country.
Delegates were taken to Toba Tek Singh for the visit of the area and during the meeting with the farmers discussion was held on producing good quality of cotton. While in a statement newly elected chairman of APTPMA Amanullah Kassim had demanded from the government to exempt imported cotton from import duty and tax.