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April 11, 2021

Cotton prices fall Rs400 per maund to Rs10,800 per maund

Business

April 11, 2021

KARACHI: Cotton prices fell Rs400 to Rs10,800 per maund as spinners showed reluctance to make purchases, traders said on Saturday.

They said interest of spinners further declined in purchase of cotton that resulted in a drop of the official spot rate fixed by the Karachi Cotton Association.

Chairman Karachi Cotton Brokers Association, Naseem Usman, told The News that international markets witnessed fluctuation during the outgoing week. In the New York Cotton Market, rates had gone down to 77 cents per pound, which again increased to 82 cents per pound.

Cotton rates in the international market fluctuated during this period while local stocks are left below than 85,000 bales only.

The decision of importing sugar, cotton yarn and cotton from India had slowed down the trade in local market while tension between the spinners and value-added sector had also subsided, said one trader. However, the value-added sector is still insisting the government to allow duty free import of yarn while All Pakistan Textile Mills Association opposed it saying that cotton yarn was available in the bulk quantity.

Cotton has almost ended in Sindh while rates remained between Rs10,200 to Rs10,500 per maund. Lint fetched Rs10,500 to Rs10,800 per maund in Punjab.

According to an estimate, cotton exports from the US again increased during the week and China emerged as third largest buyer after Vietnam and Pakistan with 31,000 bales. It had cancelled some deals last week while trade war between China and the US is still going on. Mixed trend was witnessed in Brazil, India, Central Asia and African markets.

Naseem Usman said cotton sowing partially started in the country while this time public as well as private sector was active to increase the cotton production in the country.

Governor Punjab and Chief Minister Punjab called a meeting on cotton production and took some measures to increase the production. It was advised that cottonseed price should be fixed at a minimum rate of Rs5,000 per maund. Besides this, cotton growers should be provided Rs15,000 per acre subsidy, which will encourage the farmers.

Dera Ghazi Khan Chamber of Commerce and Industry Chairman Khuwaja Rumi demanded the government to take measures for the improvement of cotton production. Pakistan Cotton Ginners Association’s Chairman, Seth Jassu Mal, is also taking efforts to get the cotton production increased.

The Federation of Pakistan Chambers of Commerce and Industry’s cotton and textile committee had called a meeting of experts and growers in Bahawalpur and prepared suggestions for the government. Several individuals, related to cotton sector, have also become active for an increase in the production this year.

One trader from Umerkot Sindh said several seed companies had entered in the market this year while some ginners had also prepared cotton seed. They were taking measures to increase germination of seed, which had remained at 47 percent only last year. However, the growers were cautious in buying these seeds as they had bad experience last year. Federal Agriculture Committee projected cotton sowing over 2.33 million hectares in the country with production of 10.5 million bales.