KARACHI: Trading on cotton market will fully resume after the budget on June 12.
Market sources told that there was not much activity in the market.
Cotton Analyst Naseem Usman told that 1200 bales of Rahim Yar Khan were sold at Rs 8600 per maund.
Naseem said that no trading in Phutti of new season was observed. The ginners were interested in selling of old stock. Some mills showed their interest in buying of old stock. The mills were facing liquidity crunch as well as they had the stock of imported cotton.
He also said that industry is demanding from the government to take prompt measures to facilitate the textile industry and ease the liquidity pressure, by releasing part of their long overdue refunds stuck with the government to support the textile industry in the prevailing difficult and challenging scenario amid Covid-19. They were also demanding release of outstanding payments of Technology Up-gradation Fund (TUF) Schemes & reinstate TUF Scheme in upcoming textile policy for BMR.
He said that ginners had announced that they will not resume their operations until the government accept their demands.
Pakistan Cotton Ginners Association has demanded from the government they should provide them relief in the upcoming budget by accepting their demands including relief on the sales tax on Khal and buying of stock of 5 lac bales through Trading Corporation of Pakistan.
Naseem Usman told that cotton crop is facing severe threat of locust attack. He said that Plant Protection Department of Government of Sindh is working on saving the cotton crop from the attack of locust. He urged that both provincial and federal governments should work together to save the cotton crop from the locust attack.
Naseem said that there are reports that condition of cotton crop in Lower Sindh is satisfactory but there are chances of severe attack of locust in Upper Sindh and Punjab.
He also said that according to the media reports Minister for National Food Security and Research Syed Fakhir Imam said that federal government will collaborate with the provinces at all levels for successful implementation of Rs37 billion Agricultural Fiscal Package.
The pro farmer package include subsidy on fertilizers, cotton seed and white fly pesticides. It also includes reduced bank mark up on agricultural loans as well as sales tax subsidy on locally manufactured tractors.
Naseem Usman said that spot rate remained unchanged at Rs8400 per maund. The rate of cotton in Sindh and Punjab is in between Rs6500 to Rs8400 per maund. The polyester fiber was was available at Rs155 per kg.
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
FOR BASE GRADE 3 STAPLE LENGTH 1-1/16″
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
37.324 kg 8,400 160 8,575 8,575 NIL
40 kgs 9,002 171 9,190 9,190 NIL