RECORDER REPORT
19 Aug 2020
KARACHI: Local cotton market remained stable on Tuesday. Market sources told that quality of Phutti was affected due to the monsoon rains. Picking of cotton may also be affected due to rains.
Sources also told that the sowing area of cotton has decreased by 20 percent. The major reason for the decrease in the production of cotton is non-availability of good quality seeds and failure of concerned departments to control pest pressure.
Cotton Analyst Naseem Usman told that The Supreme Court has announced its decision on Gas Infrastructure Development Cess (GIDC), directing recovery of GIDC payables from the industries, on Thursday.
The court has ordered companies to pay outstanding amount of Rs 417 billion.
Naseem also told that bullish trend was witnessed in the rate of cotton in Pakistan while downward trend was witnessed in international cotton market. He told that it is expected that big deals were signed in the areas related to cotton products during the visit of Chinese President to Pakistan.
The chairman FPCCI standing committee on imports Khawar Noorani has asked the government to waive the 37 percent tax on Partially Oriented Yarn (POY 5402.4600), which is a basic raw material of the industry and the small units, so that the investors can be encouraged to set up Draw Textured Yarn (DTY) manufacturing plants and local production will be able to meet the demand for raw materials for domestic industries.
While ICE cotton futures rose as much as 1.4 % on Monday, underpinned by a weaker dollar, with investors expecting a further deterioration in crop quality in a weekly US government report due later on Friday.
Naseem Usman told that 2200 bales of Tando Adam were sold in between Rs 8225 to Rs 8300, 1600 bales of Sanghar were sold in between Rs 8250 to Rs 8300, 800 bales of Shahdadpur were sold in between Rs 8825 to Rs 8250, 400 bales of Hyderabad were sold at Rs 8250.
800 bales of Mirpurkhas were sold in between Rs 8200 to Rs 8225, 200 bales of Maqsooda Rind were sold at Rs 8260, 1800 bales of Chichawatni were sold in between Rs 8600 to Rs 8675, 400 bales of Burewala, 200 bales of Kasowal, 200 bales of Gojra, 400 bales of Harronbabad and 200 bales of Sahiwal were sold at Rs 8650.
He also told that rate of cotton in Sindh was in between Rs 8225 to Rs 8300.The rate of cotton in Punjab is in between Rs 8600 to Rs 8700. He also told that Phutti of Sindh was sold in between Rs 3400 to Rs 3600 per 40 kg. The rate of Phutti in Punjab is in between Rs 3700 to Rs 4000 per 40 kg.
The rate of Banola in Sindh was in between Rs 1500 to Rs 1550 while the price of Banola in Punjab was in between Rs 1600 to Rs 1700.
The Spot Rate remained unchanged at Rs 8350 per maund. The polyester fiber was available at Rs 153 per kg. (Source: Business Recorder)