Weekly review: Cotton spot rate sees Rs 1,500 increase - Business Recorder

Weekly review: Cotton spot rate sees Rs 1,500 increase – Business Recorder

Karachi: Cotton spot closed at Rs 22,500 with an increase of Rs 1,500 per lot. A downward trend has been reported in the cotton rate in the international market. There is a gradual increase in the arrival of a new crop of Phutti. The price of Phutti varies between 10,000 and 11,000 rupees per 40 kg. The price of cotton per pound is Rs. 23,000. Irrigation water is partially available as the heat wave continues.

Phutti’s arrival partly into the local cotton market began over the past week. About 1,000 bales were produced. The supply of Phutti is gradually increasing. Several ginning manufacturers in Sindh and Punjab have started buying, which means that more gins will start operating in the coming days. So far the Phutti comes partly from the cotton growing regions of Sindh. Partial arrival of Voti is expected to start soon from the cotton growing areas of Punjab.

Price of Phutti in Sindh Province is between Rs. From 10,000 to 11,000 rupees. At the moment, no rate for Footie has been announced in the market. Ginning mills in Punjab will take Phutti from Sindh. It will cost Rs. 300 to 350 per 40 kg more due to transportation.

Several ginning mills in Sindh have started to buy Phutti. Three or four ginning plants are partially operational and more ginning plants are expected to be operational by next week.

In Sindh, deals for new cotton crop have been fixed at Rs. 22,700 per pound but in Punjab they ask for another 1,000 rupees.

In addition, the old cotton deals also take place in small quantities. Mill-to-mill deals were also made. Large groups of mills sell cotton at low prices in exchange for cotton spinning production due to high cotton prices.

The upcoming season will be very difficult for all cotton stakeholders as there are issues of parity of cotton with cotton threads, moreover, banks have raised interest rates. In addition the price of the US dollar is high all the time and there are container and freight issues as well. There is a decrease in the demand for textile products in international markets. These are the problems that make import and export business difficult.

Hobbyists and treadmills should be careful while doing business. A simple mistake and negligence can create a huge problem. The government has dropped the price-raising bomb by increasing the prices of petroleum products by Rs. 30 per liter in one go and the price of electricity will also be increased significantly. In this case, it will be very difficult to manage the industry. Business will be seriously affected and there will be chaos in the country.

Karachi Cotton Association Spot Price Committee records deals for new cotton season from July to August every year. Deals before that will not be reported. The new spot rate will also be imposed from July 1.

In Sindh and Punjab, the price of old cotton varies between Rs 21,000 and Rs 22,500 per piece. Price of new crop is Rs 23,000 to Rs 23,350 per piece. The rate of New Phutti ranges from Rs 10,000 to Rs 11,000 per 40 kg.

The Karachi Cotton Association Spot Price Committee raised the spot price by Rs 1,500 per piece and closed it at Rs. 22500.

There is a water crisis in some areas of Sindh and Punjab, as well as high temperature affecting the crop. However, partial provision of irrigation water has begun in some areas.

The agricultural institutes of Punjab province keep reporting the cotton production status from time to time but the agricultural institutes of Sindh province are silent due to rumors about cotton production.

Naseem Osman, Chairman of the Karachi Cotton Brokers Forum, said that after the volatility in the international cotton markets, there was an overall downtrend. New York cotton futures trading for July ranged between 141 and 145 US cents a pound and then closed at 140 cents.

According to the USDA’s weekly export and sales report, 37,000 bales were sold for 2021-22, which is 67% less than the previous week.

India topped the list with 21,200 bales. Vietnam came second with 9800 bales, while China came third with 6300 bales.

Over 95,000 bales were sold for 2022-23. El Salvador topped the list with 22,300 bales. Turkey came in second place with 19,800 bales. Pakistan came in third place with 19,100 bales.

South Punjab Agriculture Minister Saqib Ali Atil claimed that cotton has been planted on 3.6 million acres across the province, which is 90% of the set target. He expressed these views during a meeting held at the Mango Research Institute. He said that cotton sowing was still in progress, adding that the goal would be achieved easily given the availability of water.

Moreover, the minister informed that 121 pilot plots have been established across southern Punjab, adding that Integrated Pest Management (IPM) is used to control harmful insects. He reported that farmers were also stimulated in this regard. Taking into account the current heat wave as a factor against crop protection, the secretary described it as a challenge to maintain the health of crops including cotton as different effects are observed in different regions. He directed officials to pay more attention to this matter. He urged farmers to treat early with pesticides to attack whiteflies, jassids and thrips on early planted crops.

Agriculture experts emphasized the need to promote innovative, economically efficient and environmentally friendly solutions to agricultural production to enhance production and income generation capacity for farmers.

Speakers made the remarks during a three-day workshop on organic cotton on Thursday. Speakers called for the production of organic cotton which aims to achieve sustainability by reducing the use of pesticides, synthetic fertilizers and water.

It was also emphasized that organic cotton supports biodiversity conservation and enhances agroforestry in Pakistan, while traditional cotton production practices with excessive use of chemical fertilizers and pesticides, pose a threat to wildlife and lead to the degradation of habitats and ecosystems.

Speaking on the occasion, Dr. Masoud Arshad, Senior Director of Footprint, WWF-Pakistan, said that Pakistan is the fifth largest cotton producer in the world and has the third largest cotton spinning capacity in Asia, after China and India.

He said WWF Pakistan is promoting organic cotton with sustainable practices, which has resulted in a 22 percent reduction in pesticides, a 12 percent reduction in irrigation water use and a 19 percent reduction in the use of synthetic fertilizers, ultimately reducing each unit . Greenhouse gas emissions at the farm level, compared to cotton produced by non-participating farmers. He added that this helped empower the disadvantaged groups in the society who depend heavily on cotton production.

“We, in collaboration with WWF Pakistan, are very excited to boost organic cotton production and ensure that it is certified according to global organic standards,” said Syed Habib Shah from Balochistan.

He added that Balochistan possesses huge potential for organic agriculture and with joint efforts and some required developments; We can earn great benefit to the agricultural community and the country’s economy.

Dr. Shafqat Saeed, Dean of the MNS University of Agriculture Multan, said that now is the time to develop synergies and transform traditional agriculture into nature-based agriculture.

He said that at MNS University, we are experimenting and formulating the best biological solutions to enhance soil and plant health leading to the support of organic farming in Pakistan.

Copyright Business Recorder, 2022

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