In the local cotton market during the last week the trading volume of cotton increased as well as the rate of cotton and Phutti remained stable due to the increase in buying by the textile and spinning mills as well as the supply of Phutti increased. The rate of Banola increased in Punjab and Sindh.
The rate of cotton in Sindh according to the quality of cotton is in between Rs 7700 to Rs 8800 per maund. The rate of Phutti is in between Rs 3300 to Rs 4200 per 40 kg. The rate of cotton in Punjab is in between Rs 8600 to Rs 9000 per maund while the rate of Phutti is in between Rs 3600 to Rs 4200 per 40 kg.
The rate of cotton in Balochistan is in between Rs 8700 to Rs 8900 while the rate of Phutti is in between Rs 4000 to Rs 4600 per 40 kg. The Spot Rate Committee of Karachi Cotton Association has increased the rate of cotton by Rs 50 per maund and closed it at Rs 8700 per maund.
Chairman Karachi Cotton Brokers Forum Naseem Usman told that unfavorable weather conditions, untimely rains had caused damage to the cotton crop. According to the estimates released by Pakistan Cotton Ginners Association the total production of cotton till October 1, is 29 lac (2,900,000) bales as compared to 40 lac 20 thousand (4,020,000) bales during this period last year. The cotton production this year is 27.04 % less than last year.
The experts are of the view that this year around one crore bales of cotton will be produced but some are predicting that production may be even less than that. Moreover, according to the estimates presented in the first meeting of the Cotton Crop Assessment Committee (CCAC) one crore 2 lac (10,200,000) bales will be produced which is less by 48 lac bales (33% less) than the initial estimates of one crore 50 lac (15,000,000) bales. The local textile and spinning mills need one crore 45 lac to 50 lac (14,500,000-15,000,000) bales which means they will spent 1.5 billion dollar of foreign exchange to import 45 lac bales from abroad.
Naseem Usman said that according to the estimates of the importers up till now agreements of import of 15 lac bales from abroad have been signed. After the report of CCAC regarding production of cotton the textile mills are increasing their imports according to their needs.
Moreover, in the international cotton market mixed trend was observed. There was a slight increase observed in the rate of New York Cotton due to two reasons; firstly, the export of cotton increased by 15 % as compared to last week and the second reason is the hope of softening of China and America trade conflict in the coming days.
Newly elected chairman of All Pakistan Textile Mills Association (APTMA) Dr Amanullah Kassim Machiyara while presiding the 61st Annual General meeting of the body has assured that he will play its role for the benefit of the textile industry. He said that textile industry is in crisis. He demanded that government should announce bailout package for the industry so that the industry should come out of crisis.
Chairman Pakistan Cotton Ginners Association Mian Javed Sohail hold successful meeting with chairman Federal Board of Revenue Shabbar Zaidi in Islamabad few days ago regarding 5% sales tax on Banola. In the meeting chairman FBR has assured that government will not sent notices to ginners who had not paid 5% sales tax on Banola. The delegation comprised of senior vice chairman Hareesh Kumar, vice chairman Hafiz Abdul Latif, former chairman Sohail Mahmood Harl and Doctor Jassumal.
Few days back Army Chief General Qamar Javed Bajwa hold meeting with the business tycoons of the country in which he said that business community should support government in the interest of the country so that the country will progress. He said that the business community should play its role in increasing the exports of the country.
Pakistan Institute of Cotton Research has announced to celebrate World Cotton Day in Pakistan on October 7. In this regard meetings will be held in Islamabad and Karachi in which cotton experts will express their views. The crop in the country is showing downward trend for the last many years. This year too it is expected that cotton crop will face unprecedented damage. Government should take immediate steps to increase the production of cotton as the climate is abruptly changing in the work. Keeping in mind the climate change agriculture scientists should evolve a strategy for the sowing of cotton.
The selection of good quality seed is very important for increasing cotton production. Cotton seeds are of very low quality. Good quality cotton seeds should be imported having high yield. Moreover, there should be complete ban on cultivation of sugar cane in the cotton growing areas. Now corn is being cultivated on a very large number of cotton cultivated area due to which the cotton cultivated area decrease. Low standard medicines are also effecting the cotton production due to which the farmers are taking interest in the cultivation of other crops.