Source: Business Recorder

RECORDER REPORT

June 22, 2021

KARACHI: The local cotton market remained stable on Monday. Trading volume remained thin. The rate of cotton in Sindh is in between Rs 13000 to Rs 13200 per maund. The rate of cotton in Punjab is between Rs 13800 to Rs 14000 per maund.

The rate of new crop of Phutti in Sindh was in between Rs 5700 to Rs 5900 per 40 kg. The rate of Phutti in Punjab is in between Rs 6000 to Rs 6300 per 40 kg. The rate of Banola in Sindh is in between Rs 1800 to Rs 1900 per maund. The rate of Banola in Punjab is in between Rs 2000 to Rs 2200 per maund.

Cotton Analyst Naseem Usman told Business Recorder Australia asks India to explain the variation in figure for ‘eligible production’ used to calculate MSP. India has stated that its price support for cotton has not exceeded the de-minimise subsidy limits determined by the WTO.

The China Cotton Association (CCA), along with other industry organizations, officially launched the Cotton China Sustainable Development Program on Thursday, aiming to build a home grown independent sustainable standard and certification system to counter the West’s dominance that has posed serious threat on China’s cotton industry.

The move marks a milestone in overhauling the global cotton rule-making system, which is currently monopolized by the Better Cotton Initiative (BCI), a West-led industry body that has apparently been manipulated by some anti-China forces in their slandering against China and its policies in Northwest China’s Xinjiang Uygur Autonomous Region. BCI suspended cotton licenses for Xinjiang companies several months ago, which led to a sharp plunge in the region’s cotton exports after boycotts by several global fashion brands.

Industry insiders said that the establishment of the new program will make China - the world’s largest cotton consumer market - hold a significant saying in international pricing and standard-setting, and more importantly, lend it a tool to reasonably defend itself and protect its legitimate interests against Western political crackdowns.

The program is designed to promote the high-quality and sustainable development of China’s cotton industry based on the core concept of “environmental friendly, excellent quality, respect for labour and fully traceable.” It will facilitate the consumption of homegrown cotton and expand the global market share of Chinese cotton.

Chairman Pakistan Cotton Ginners Association Dr Jasu Mal while chairing the meeting of cotton ginners in Sukhur said that with the imposition of new taxes in the federal budget it is feared that ginning industry will be permanently shut. Naseem Usman told that Pakistan Cotton Ginners Association has written a letter to Cotton Commissioner for imposing a ban on shifting of Phutti from Sindh to other provinces. The Cotton ginners had stopped the buying of Phutti.

PCGA said that cotton production in Sindh was witnessing a decline for the last three years. Due to the shortage of Phutti 50 percent factories were facing difficulties in running their operations. The country’s textile group exports have witnessed a decline of 20.45 percent in May 2021, standing at $1.060 billion compared to $1.332 billion during April 2021, the Pakistan Bureau of Statistics (PBS) said.

Meanwhile, Director Saif Group of Companies and Chief Executive Officer (CEO), Kohat Textile Mills (KTM), Barrister Asad Saifullah Khan has planned to invest Rs 2 billion more to expand its role in value-added sector of textile industry.

He was addressing a ceremony held in connections with the inauguration of the KP’s first 1MW Solar Clean & Green Energy Project in Kohat Textile Mills at Kohat. 

The Spot Rate remained unchanged at Rs 12600 per maund. The rate of Polyester Fibre was increased by Rs 2 per kg and was available at Rs 207 per kg. (Source: Business Recorder)