300,000 bales of cotton are Mills import despite local supply

Despite stockpiling the new cotton crop, Pakistani mills have placed import orders for 300,000 bales, raising questions about the country’s crop.

So far, cotton import orders have been issued for 300,000 bales. Traders say that as cotton consumption increases, so will imports due to shortages in the country.

Experts said that when the new crop was coming to Pakistan, it was a matter of concern.

The trader said that cotton prices remained stable in the local market after the purchase of spinners. Prices remained stable in Sindh, while in Punjab it declined by Rs 400 per head.

With the advent of seed cotton, ginning factories have also partially started operating. According to some estimates, by the end of June, about 100,000 bales will be ready, more than in previous years.

The arrival of seed cotton from Sindh has increased in the mills, as a result of which about 15 ginning factories have been opened in this province, while 10 mills have started their work in Punjab, as the arrival here has also started partially. Is.

Some estimates suggest that if the weather remains favorable, cotton production will increase from about 7.5 million bales to 8.0 million bales.

People associated with the textile industry said that some new textile machinery has been imported in the country, which will increase the consumption of cotton.

On the other hand, cotton production is declining every year and cotton prices in the country are rising by Rs 1,500 to Rs 2,000 per head, forcing textile mills to import.

The government is ignoring cotton and giving incentives to other crops. Even the area dedicated to the cotton crop is not being fully utilized. No concrete steps have been taken in the federal budget to improve the crop.

The area for cotton sowing in Punjab was estimated at 4.5 million acres, while only 4.4 million acres were cultivated. In Sindh, an estimated 1.7 million acres of cotton was to be cultivated, but the crop was grown on only 1.5 million acres.

On the other hand, instead of giving incentives to cotton growers, the sales tax on lint has been increased from 10% to 17%. In addition, 17% sales tax has been imposed on seed cotton.

The Pakistan Cotton and Ginners Association (PCGA) delegation met several ministers in Islamabad during the week, but no concrete decision was received in favor of cotton production. PCGA sources said that if their legitimate demands were not met, they would be forced to close ginning factories and oil mills.

Buyers have complained to PCGA that they have been affected by some of the cotton blends, which were manufactured by ginners and sold with the help of brokers. Some cotton brokers were also involved in this misconduct. Buyers called for a halt to such activities, which include mixing cotton with garbage.

During the week, prices in Sindh ranged from Rs 12,900 / mund to Rs 13,200 / mund, while seed cotton prices ranged from Rs 5,700 to Rs 5,900 / 40kg. Cotton prices remained at Rs. 1,800 to Rs. 2,000 / mund.

In Punjab, the price of cotton was Rs 13,600 to Rs 13,700 / mund, the price of seed cotton was Rs 5,600 to 600/600/40 kg, while the price of cotton seed was Rs 2,000 to Rs 2,200 / mund.

The spot rate committee of Karachi Cotton Association maintained the spot rate at 12,600 / mund.

Naseem Usman, chairman of the Karachi Cotton Brokers Association, told The News that prices have risen in the international cotton market. In the New York Cotton Market, the price of lint ranged from 86 to 87 cents per pound. According to the weekly USDA report, Pakistan was the top buyer of US shares with 130,400 bales.

Prices remained stable in Brazil while rising trends were seen in India.

Sindh Agriculture Minister Ismail Rahu in a statement demanded immediate withdrawal of sales tax levied on ginning factories by the federal government and immediate withdrawal of 17% sales tax levied on cotton seeds and cotton. Is.

The provincial minister said that two years ago, the incompetent federal government had imposed a 10 per cent tax on cotton, which has now been increased to 17 per cent. He added that the wrong policies of the Niazi government were already causing a lot of damage to agriculture.