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Cotton hits new peak amid low yield, delayed imports

by Pakistan Latest News Update

Salman KhanLAHORE: Cotton costs are touching new highs within the native market amid a fall in native manufacturing, delay in cotton shipments from overseas and rising dollar-rupee disparity.

The Karachi Cotton Affiliation quoted Rs13,580 per maund because the spot price for the white lint, whereas the seed cotton charges prevailed between Rs5,200 and Rs6,200 per maund on Wednesday.

The ex-gin value in Karachi was Rs8,550 per maund and seed cotton charges hovered between Rs4,000 and Rs4,500 per maund a yr in the past. The common seed cotton value throughout 2020-21 remained Rs5,016 per maund.

Karachi Cotton Brokers Discussion board chairperson Naseem Usman says these are the best charges since 2010-11 when the costs had crossed the Rs14,000 per maund mark.

Karachi Cotton Brokers Discussion board claims charges are the best since 2010-11

Manufacturing loss because of declining cotton acreage and yield, an surprising scarcity within the native market due to delays in import supply, rising freight expenses, destructive crop outlook studies from neighbouring nations, mounting dollar-rupee disparity are being thought-about main elements behind the bullish development within the native cotton market. And this development is not going to relent within the close to future, it’s believed.

A textile miller, who requested to not be named, says the native business is in sizzling water lately for not like previously, cotton value within the worldwide market has turn out to be nearly equal to the ‘costlier’ native one.

“We have purchased almost 11 million bales of cotton from abroad but the shipment is facing delays mainly due to Covid-19 restrictions. The delay is impacting the local market as we have to meet our requirements from the domestic sources until the arrival of the imported raw material.”

He says they’re pressured to make native purchases to maintain their items working however the home cotton is brief in staple and poor in high quality for being contaminated.

The ginning business prophesies additional doom. Muhammad Junaid Iqbal, a ginner from Rahim Yar Khan district, says seed cotton price in Punjab markets is being quoted as much as Rs6,200 per maund lately, and fears it might go as much as Rs7,000 if shipments from overseas are additional delayed.

Referring to crop studies emanating from neighbouring cotton producing nations, he says heavy monsoon has broken between 20 and 25 per cent of the crop in India, whereas it is usually affected by harsh climate in China. It will add stress to the native market.

Mr Usman from the Karachi Cotton Brokers Discussion board says persevering with rupee slide in opposition to greenback and rising freight expenses are making imported cotton costly, thus the textile millers are turning to native purchases as a result of uncertainty guidelines each the greenback price and arrival of shipments due to coronavirus-related hurdles the world over.

Pakistan harvested 5.6 million cotton bales final season, the bottom within the 30 years, whereas the textile business wants not less than 15 million bales. It must import round 9 million bales to fulfill the shortfall.

Printed in Daybreak, August 12th, 2021

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