Spot price did not move amid lukewarm business - Business Recorder

Spot price did not move amid lukewarm business – Business Recorder

Lahore: Tuesday’s local market remained bearish and trading volume remained low.

Cotton analyst Naseem Othman said the cotton rate in Punjab and Sindh ranges from Rs 21,000 to Rs 22,000 per pound. He also said that the rates for Cotton and Voti saw a decrease of Rs 1,000.

New Kappas from Digri, Tando Ghulam Ali was available at Rs 9,000, New Kappas from Tando Bago, Kadan and Talhar had Rs 9,500 while New Kappas from Badin, Gularchi, Sajawal and Chor Jamali had Rs 9,800,

The Kappas of Mir Pur, Sakro and Gharo were sold between Rs 8700-8800, the new Kappas of Kunri were Rs 8500-9000 and Ghadoo, Nawan Kot Rs 9000-9200.

Cotton cultivation has been completed on more than 1.936 million hectares of land in potential areas across the country against the target of 2.32 million hectares for the current season (2021-2022).

On Monday, an official at the Ministry of National Food Security said that the planting of crops witnessed a decrease of about 6.9% compared to the last season, which exceeded 2.078 million hectares.

Speaking to the APP, he said that according to regional agricultural additions and crop reporting services, the nationwide cotton-sewing target for the season has been achieved by 83.4%.

He added that there was a 25.05% increase in crop cultivation in Sindh, 12.3% in Balochistan, and 54.5% in Khyber Pakhtunkhwa. He said that cotton sowing in Punjab during the period under review recorded about 17.3% negative growth due to drought and dry weather at the beginning of the sowing season.

The official added that the cotton crop had planted more than 1.279 million hectares of land across Punjab, 79.4 percent of the target of 1.61 million hectares.

Similarly, he said, the cotton crop was planted on 0.594 million hectares, 92.8% of the target of 0.64 million hectares in Sindh.

The official added that the provinces of Balochistan and Khyber Pakhtunkhwa have achieved 91.4% and 7.73% of their respective seeding targets of 0.64 million hectares and 0.00017 million hectares.

He indicated that the cotton production target for the season had been set at 11.034 million bales based on yields of about 740 kg per hectare.

He said the Ministry of National Food Security and Research has also proposed to revise the intervention price for Cotton Seed (Phutti) to Rs 6,000 per 40 kg for the 2022-23 crop season in order to ensure the proper rate of return for the farmers.

Prime Minister Shahbaz Sharif directed the relevant ministries to hold relevant stakeholder meetings to consult on the revision of the cotton seed subsidy price, finalize the Weighted Average Cost of Gas (WACOG) application mechanism and process the Extension of Load (EoL) requests. and new electrical connections.

The Prime Minister’s Office (PMO) issued these directives to the Ministry of National Food Security and Research, Department of Petroleum, Department of Energy and Department of Commerce, in response to a letter written by the Pakistan Textile Mills Association (APTMA).

The PMO also advised APTMA to contact the National Tariff Commission (NTC) regarding their complaint against anti-dumping duties on polyester staple fibres, under prevailing rules/policy.

It also directed the Project Management Office (PMO) to conduct consultations with relevant stakeholders to examine the Department of Energy’s proposals for disbursing support to export-oriented sectors.

APTMA, in its letter to the Prime Minister, shared its proposals to support and accelerate textile exports.

On the proposal of APTMA regarding the announcement of cotton support price of Rs. The Department of National Food Security and Research stated that the 2021-22 Intervention Price Policy, although approved in late August in the season, has led to better crop management by farmers and improved production despite a decrease in acreage under cultivation compared to last year. Instead of this result, the government approved the intervention price policy before the start of the sowing season (March) to influence the farmers’ decision regarding cotton cultivation.

The ministry says that the already approved intervention price is under review with government approval to attract more farmers towards cotton cultivation.

On APTMA’s proposal to announce a cotton subsidy price of Rs 8000 per maon of Phutti for the upcoming season, the Ministry of Commerce commented that in order to revive cotton production, the Ministry of National Food Security and Research (MNFSR) has submitted a summary to the ECC on the Cotton seed at Rs. 5,700/40 kg, the intervention price of cotton seed is called at a discount of 10 per cent of the import parity price estimated using Cotlook A-Index when domestic prices fall below this limit and a cash credit line is provided to the Trading Corporation of Pakistan ( TCP) to buy two million bales at the price of the intervention. The European Coordination Committee of the Council of Ministers approved the summary submitted by the MNFSR on 17 March 2022 and the Council of Ministers endorsed the decision on 17 March 2022.

The spot rate remained unchanged at Rs 22,500 per mile. Polyester fibers were available at Rs 305 per kg.

Copyright Business Recorder, 2022

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