KARACHI: The Spot Rate Committee of Karachi Cotton Association on Saturday has decreased the spot rate by Rs 50 per maund and closed it at Rs 8250 per maund.

Market sources told that downward trend was witnessed in the local cotton market because the quality of Phutti as well as supply of the Phutti was affected due to the monsoon rains.

Ginners were buying Phutti according to their needs. The picking of cotton was affected due to rains in the different parts of the country.

Meanwhile, growers and farmers are feared a loss in cotton crop owing to expected heavy monsoon rains, high temperature and whitefly attack.

Cotton Analyst Naseem Usman told that All Pakistan Textile Mills Association has urged National Electric Power Company to fix predictable tarriffs for the industry.

Meanwhile the federal cabinet also gave the approval of extending the date of providing electricity to the export oriented textile sector on subsidised rates till June 30, 2021. After the decision it is expected that exports of cotton related products will increase. Ginners also demanded that since they were directly related to textile industry government should also provide them electricity on subsidised rates.

Naseem Usman also told that sowing of cotton crop both in Punjab and Sindh is in final stages. Area cultivated in Punjab as reported by Crop Reporting Services Punjab as on 15th June 2020 was registered at 1.842 million hectares which comprises 91% of the tentative target and about 2.5% less than last year.

Whereas, cultivated area in Sindh as on 19-6-2020 was recorded as 0.615 million hectares showing an increase of 2.7% against previous year. It becomes 96% achievement against the target of 0.640 million hectares. The situation of cotton crop in Lower Sindh is very satisfactory. Recent spell of rains is beneficial for cotton crop. There are reports of White Fly, Jassid, Thrips, Army worm and Pink Ball Worm in Punjab.

According to the report released by Directorate General of Pest Warning & Quality Control of Pesticides Punjab, Lahore the pest attack during fourth week of June 2020 remained higher as compared to third week and corresponding week of the last year.

Meanwhile, The Auditor General of Pakistan (AGP) has started investigation in to the sales tax refunds, duty draw backs and customs rebate paid to exporters under the Prime Ministers Relief Package for COVID 19.

Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood chaired a meeting on duty draw backs, and the Minister at the Ministry of Commerce to discuss the progress on various initiatives by the ministry in this regard.

Naseem Usman told that Minister for National Food Security and Research Syed Fakhar Imam said that cotton hedging could be an alternative source of marketing for giving a level playing field and facilitating a smooth flow of national and international trading in cotton.

Moreover, press release issued by the Karachi Cotton Association says that KCA understands from the reports appeared in a section of press that while chairing a meeting on cotton by Federal Minister for National Food Security and Research, the official of Pakistan Mercantile Exchange Limited (PMEX) discussed with the Federal Minister in detail the proposal of Hedge Trading in cotton.

The KCA believes that in order to stabilise cotton prices in the country, Hedge Trading in cotton should be resumed for the benefit of the cotton trade under the aegis of the Karachi Cotton Association with the consultation of all stake holders of cotton economy as cotton marketing involves a tremendous business risk, it was therefore, necessary that there should be some form of price insurance to reduce the risk of volatile fluctuation in prices.

Naseem told that 1200 bales of Hyderabad, 1200 bales of Kotri, 2000 bales of Sanghar, 800 bales of Shahpur Chakar, 1000 bales of Chodagi were sold in between Rs 8200 to Rs 8300. 1400 bales of Shahdadpur and 1200 bales of Tando Adam were sold at Rs 8200 to Rs 8350, 400 bales of Gularchi and 600 bales of Mirpurkhas were sold at Rs 8200, 1000 bales of Gojra were sold at Rs 8650, 400 bales of Mianchannu and 200 bales of Mungi Bangla were sold at Rs 8450.

Naseem Usman also said that rate of new cotton of Sindh is in between Rs 8150 to Rs 8200 per maund while in Punjab the rate of new cotton is in between Rs 8300 to Rs 8500 per maund.

He told that Phutti of Sindh was sold in between Rs 3400 to Rs 3800 per 40 kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 3900 per 40 kg.

The rate of Banola in Sindh was in between Rs 1550 to Rs 1600 while the price of Banola in Punjab was in between Rs 1600 to Rs 1650.

The Spot Rate Committee of Karachi Cotton Association has decreased the spot rate by Rs 50 per maund and closed it at Rs 8250 per maund. The polyester fiber was available at Rs 157 per kg.