The prices of cotton remained stable. There are two major threats to the cotton crop for the next season. The germination process of seeds is alarmingly low. Emergency should be imposed to control Locust swarm. India, Vietnam, Bangladesh are taking advantage of Corona Virus in China. The increasing energy prices are the biggest hurdle in increasing the export of textile sector.
The ginners had left the stock of 700,000 bales out of which the good quality cotton is available in small amount. Many mills had increased the buying of cotton according to their needs due to which the trading volume remained stable during the week.
On the other hand, big textile groups are relying on imported cotton. The delivery of cotton from overseas is going on due to which textile mills are giving payments. According to the private importers of cotton agreements for the import of 48 lac cotton bales had been signed. According to the sources of All Pakistan Textile Mills Association (APTMA) 55 lac bales of cotton will have to be imported to fulfill the demands of local industry.
In Sindh and Punjab, the prices of cotton are in between Rs 7000 to Rs 9200 per maund while the rate of Phutti in Sindh is between Rs 2800 to Rs 4100 per 40 kg. In Punjab the rate of Phutti remained in between Rs 3000 to Rs 4500.
The Spot Rate Committee of Karachi Cotton Association has decreased the rate by Rs 100 per maund and closed it at Rs 9000 per maund. Naseem Usman, Chairman Karachi Cotton Brokers Forum told that markets were affected by Corona Virus. According to China they are going to announce subsidy on 700 American items from March 2nd. Due to this the rate of New York Cotton increased by two cents.
The difficulties which would be faced for increasing the production of cotton during the year 2020-2021 includes substandard seeds and pesticides as well as Pink Ball Worm, White Lie and other viruses are extremely damaging for the crop.
