KARACHI: The local market remained bullish on Saturday. Market Sources told that trading volume remained thin.
Market Sources told that the rate of cotton reached at Rs 11000 per maund which is highest in 11 years.
The rate of new crop of Phutti was in between Rs 6000 to Rs 6400 per 40 kg. The rate of Banola is in between Rs 2000 to Rs 2500 per maund.
Prime Minister Advisor on Commerce and Investment Abdul Razak Dawood said on Friday that Pakistan’s goods and services export would cross $30 billion during this fiscal year.
He held a consultative meeting with the concerned officials of Commerce Ministry to gauge the reasons for the increase in imports and growth in exports during the first eleven months of current fiscal year.
He was informed that according to the provisional (PRE-PBS) foreign trade figures, in May 2021, exports have been on the higher side compared to May 2020. As a result, exports in May increased to $1.657 billion compared to $1.396 billion in May 2021. This shows an increase of 18.7 percent.
He was further informed that since there were extended Eid holidays to control the spike of Coronavirus, overall exports in May were also impacted.
Cotton Analyst Naseem Usman told Business Recorder that it is in the first time of history that new cotton season starts in the month of May.
Meanwhile, initial surveys of the cotton sowing area by the provincial departments concerned suggest that area under sowing of cotton during current season remained slightly over 3.3 million acres of land which is almost 700,000 acres short of the target of 4 million acres assigned to the province.
The area under cotton cultivation last year was 3.821 million acres and it is decreasing continuously for the last three years. This year, it is estimated that area under cotton sowing will remain 3.31 million acres, showing a decline of 13.4 percent as compared to last years. However, the shortfall is more if it is calculated against the assigned target.
Sources in the Crop Reporting Services, Punjab, told the Business Recorder that by May 31, 2021, (cotton sowing season end date), area under cultivation was recorded at 3.115 million acres, which comes to 94.1 percent of the expected cultivated area.
Cotton Analyst Naseem Usman told Business Recorder that if the cotton sowing area is decreased in Punjab then it is difficult that cotton production target of one crore bales set by Federal Agriculture Committee will be achieved. The new season of cotton 2021-22 has started and up till now 800 bales were prepared.
He also told that new season of cotton has started in the country from June 1. 400 bales of cotton have been delivered from the ginning factory of Tandoo Adam and 100 bales of cotton were prepared in the ginning factory of Sanghar. A ginning factory of Burewala has delivered 200 bales of cotton from the Phutti of Sindh. Up till now 800 bales of cotton were prepared from the Phutti of new season of 2021-22.
According to NAEC, many exporters are falling back on PPE manufacturing as a stop-gap activity, while some are just left with no orders to service.
Businesses worldwide have been hurt by the COVID-induced economic crisis. Indian textile and apparel manufacturers are suffering severely and some regions of the country facing a huge struggle. The garment exporters in Noida and Greater Noida are the worst of times as they claim to be fast losing business to Bangladesh, Sri Lanka and Vietnam. They are claiming- “over 20% orders have already been diverted to these countries.”
“This is not a substitute for the core business of garments. We are now finding ways to reassure workers to return to work. As an apparel cluster, we have organized our oxygen bank. We have distributed oxygen concentrators,” he said.
The Spot Rate remained unchanged at Rs 12300 per maund. The Polyester Fiber was available at Rs 200 per kg.