Textile factories less interested in buying cotton face fear of foreclosure
KARACHI: Lack of interest from buyers remained persistent in the local cotton market during the outgoing week, but a few lots of quality lint were sold resulting in a cash rate hike of Rs 500 per maund.
Traders said the ginners were left with barely 65,000 bales, which they slowly and gradually sold in the market, as textile mills were less interested in buying due to the prices of cotton yarn.
Cotton prices in Sindh have remained at Rs 10,200 per capita to Rs 10,600 per capita. Rates in the Punjab ranged from 10,800 rupees per capita to 11,500 rupees per capita.
Isolated good quality lots and credit sales were also recorded at Rs12,000 per maund.
The Karachi Cotton Association spot committee increased the spot rate from Rs500 per maund to Rs11,300 per maund.
Due to the pandemic the government has imposed a smart lockdown and trade has declined in the local market and traders are less interested as they fear amid assumptions for a full lockdown.
Last year, several industries were closed while textile factories also remained closed for one to one and a half months.
So the fear of foreclosure has kept traders on their backs.
On the other hand, there has been positive news that the private sector is also interested in increasing cotton production with the public sector.
The Pakistani Cotton Ginners Association is also active and has formed a working group to raise awareness among producers.
In addition, the regional cotton committee and the textile and cotton sector of the Federation of Chambers of Commerce and Industry of Pakistan are active and have held meetings.
In addition, the government departments also became energetic and they showed their interest in increasing cotton production while the government allocated 10 billion rupees for the improvement of cotton production, which would be spent on seed production. and subsidies to farmers.
Traders said cotton was almost out of the market, with some stocks left to ginners. However, with the exception of a few mills, all gin factories have been closed due to the end of the season.
The president of the Karachi Cotton Brokers Association, Naseem Usman, told The News that prices in the international market are almost on the rise and stable in some markets.
US exports fell 16 percent during the week due to the depreciating dollar and drought in Texas’ largest cotton area.
Prices remained stable or increased in Brazil, Argentina, Central Asia, Africa and India.
Cotton Ismail Rahu, Minister of Agriculture of Sindh, is said to be cultivated on 600,000 hectares in Sindh. Of which, half of the land has been cultivated.