KARACHI: Local cotton market remained bullish on Monday. However in the evening the rates decrease by Rs 100 to Rs 150 per maund because of the rain.
Marker sources said that rates decreased because the quality of the Phutti was affected by rains.
Cotton analyst Naseem Usman told that monsoon season is going to start from July 6. He also said that rains are good for cotton crop. According to the metrological department it is expected that there will be heavy rainfall in the areas of Sindh including Karachi, Badin, Thatha, Hyderabad and Mirpurkhas. He also said that international companies were taking interest in the buying of both old and new cotton.
Naseem told that according to the experts in the previous federal budget, withdrawal of SRO 1125 and imposition of 17 percent General Sales Tax on the export oriented sectors has increased the cost of doing business to unsustainable levels as consequences of pending refunds, liquidity squeeze and bleak industrial production and bulk of industry's investment capital being soaked up by the sales tax refund cycle.
While President Bahawalpur Chamber of Commerce and Industry had written a letter to Governor State Bank of Pakistan requesting to wave of the mark up of the ginners during March 20 to June 20. It is proposed that renewal of bank limits of cotton ginners for the next season to be done keeping in view of COVID 19 pendamic and facilitate ginners by relaxing the banking rules to enable them to operate their units.
Moreover, Trading Corporation of Pakistan may please be advised to buy the remaining stock of cotton bales lying with the ginners. Due to the non availability of the buyers and lack of demand ginners are under pressure and it is difficult to start procurement of new crop from lower Sindh.
Naseem said that while addressing a meeting in Multan agriculture minster Punjab Malik Noman Ahmad Langrial said that government is trying it's best to achieve the target of production of 75 lac bales of cotton.
He told that 1600 bales of Tando Adam were sold in between Rs 8450 to Rs 8500, 600.bales of Sanghar were sold at Rs 8500, 400 bales of Shahdadpur were sold at Rs 8400 and 200 bales of Moro were sold at Rs 8400 per maund.
Naseem Usman also said that rate of new cotton of Sindh is Rs 8450 to Rs 8500 per maund while in Punjab the rate of new cotton is in between Rs 8800 to Rs 8900.
He told that Phutti of Sindh was sold in between Rs 4000 to Rs 4350 per 40 kg. The rate of Phutti in Punjab is in between Rs 4200 to Rs 4600 per 40 kg.
The rate of Banola in Sindh was in between Rs 1975 to Rs 2225 while the price of Banola in Punjab was in between Rs 2000 to Rs 2200.
The Spot Rate remained unchanged at Rs 8400 per maund. The polyester fiber was available at Rs 157 per kg.
Copyright Business Recorder, 2020
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