Cotton

[rakeshmalik]

License To Cheat: APMC Act robs markets of crores of rupees
19 Jul 2008 10:04 am

Mumbai - The Model APMC Act for the markets in Maharashtra is proving to be a bane as the direct trading licenses, formulated through an amendment to the APMC Act in 2005, are causing losses of crores of rupees to the markets.

Acting on the directives from the Central government, the State had amended the APMC Act in 2005 on the basis of the Model APMC Act and made provisions for establishment of private markets, direct procurement from farmers and contract farming. The intention was to make the markets more open and transparent for farmers and traders.

However, the 45 direct trading licenses, which were issued by the Maharashtra State Agriculture Marketing Board (MSAMB) as per the provision in the amended Act, have added to the woes of the markets. Though the license-holders are buying directly from farmers, they are not paying the market and supervision tax to the respective APMC (Agriculture Produce and Marketing Committee). Thus the APMC is losing a revenue of crores of rupees. Interestingly, all such cases are pertaining to cotton procurement.

In Parbhani district, two license-holders owe market and supervision tax of around Rs 70 lakh to the Shelu APMC. The amount is more than half of the total revenue of that market. Officials from the Shelu APMC said, if they don't receive the pending tax amount soon, they would not be able to pay salaries of their employees after three-four months. Shelu APMC is now planning to sue the two license-holders.

The APMC at Majalgaon and Kaij in Beed district have already approached the MSAMB for recovery of the pending tax amount. Majalgaon APMC is due to collect around Rs 70 lakh to Rs 75 lakh from license-holders.

A number of APMCs in Marathwada region, including Ghevrai, Dharur, Beed, Pardi, Gangkhed, Ambaad and Sillodh, are having market and supervision tax ranging from Rs five lakh to Rs one crore pending with the direct license-holders.

After receiving complaints from different markets, the MSAMB has directed the direct license-holders to make payment of the pending amount. Managing Director of MSAMB S P Sangle told commoditiescontrol.com that the board has already ordered to all the defaulters to pay the pending tax amount soon, otherwise their bank guarantee will be seized and their licenses will not be renewed.

Sangle said that the Act has a provision of market and supervision tax relaxation for processors and exporters. Therefore, most of the direct license holders pretend to be cotton ginners and exporters to take benefit of this provision.

When contacted, V S Rajpal, the proprietor of prominent direct license-holder Manjeet Cotton, claimed that his firm is not liable to pay the market and supervision tax as they are in the business of ginning and exporting of cotton.

Meanwhile, Kaij APMC in Beed district, in its appeal in the court, has in fact challenged the MSAMB's definition of processing and exports. The APMC has claimed that ginning, in which cotton lint is separated from the seed, can't be termed as processing. Similarly, it has also sought to discuss the definition of exports.

It may be mentioned here that government agencies like the Cotton Corporation of India (CCI) and Maharashtra Cotton Federation (MahaFed) also purchase cotton from farmers and then sell it after getting its ginning done on contract basis. But, contrary to the direct license-holders, the CCI and MahaFed promptly pay the market and supervision tax.

 

[rakeshmalik]

Cotton lint gains in west India

19 Jul 2008 3:18 pm

Mumbai - Cotton lint was quoted higher by Rs 100-Rs 200/candy amid fresh demand from millers at the spot market across western India Saturday. Earlier it was being assumed that cotton lint from other countries will arrive in the country following abolition of import duty, but the latest figures show that even the international markets are short of cotton stocks.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,500-Rs 28,000/candy while average-grade traded at Rs 27,300-Rs 27,400/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 27,500-Rs 27,800/candy; 29MM cotton lint traded at Rs 28,100-Rs 28,300/candy; while 30+MM cotton lint traded at Rs 28,400-Rs 28,700/candy; and 31+MM cotton lint traded at Rs 28,800-Rs 29,000/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 27,500-Rs 28,000/candy; 29/30MM cotton lint traded at Rs 28,100-Rs 28,800/candy; and 31MM cotton lint at Rs 28,900-Rs 29,000/candy; and DCH variety traded at RS 31,500-Rs 33,000/candy.
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Cotton lint steady in north India
19 Jul 2008 3:09 pm

Abohar - Cotton lint traded unchanged at the previous level amid sluggish business at major markets across north India Saturday.

Across Punjab, cotton lint traded at Rs 2,810-Rs 2,815/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,790-Rs 2,795/maund at Malot and Gidarbha; Rs 2,775-Rs 2,780/maund at Abohar; Rs 2,760-Rs 2,765/maund at Manasa; and at Rs 2,810-Rs 2,815/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,740-Rs 2,760/maund in Haryana and at Rs 2,620-Rs 2,700/maund in Rajasthan.

 

[rakeshmalik]

Persistent demand keeps rates stable on cotton market

KARACHI (July 20 2008): Persisting cotton demand by the mills and exporters helped the prices to maintain the obtaining levels on the local cotton market at the weekend, dealers said.

The Karachi Cotton Association (KCA) official spot rate maintained the overnight level at Rs 3700, they said. Phutti prices in Punjab were at Rs 1925-2075 while rates in Sindh were firm at Rs 1900-2025, they said. Market sources said that it is first time in the history of country that during the month of June-July phutti arrivals have started in the Punjab.

Secondly, approximately, 70 ginning factories have started ginning, giving a positive outlook for the coming days on the textile sector. As a result of good arrival figure, Pak exporters finalised a deal to sell 10,000 bales of cotton, market sources said. Indian importers were in the country and seeking fine quality of cotton, but not ready to pay beyond their psychological levels, they said.

This is a green signal for the Pak mills and exporters, this factor may help prices to hold the firmness, they said. The ginners were happy and trying to sell at the highest levels, as a result most of the deals finalised at Rs 4100. Nearly 1.5 million bales of cotton have arrived at the ginneries, they said. On Friday, cotton futures settled firmer on late investor buying as it bucked weaker grains prices due to underlying bullish fundamentals in the market, brokers said.

The key December cotton contract rose 0.13 cent to finish at 73.24 cents per lb, dealing from 72.50 to 74.16 cents. Volume in the December contract stood at 7,485 lots at 2:49 pm EDT (1849 GMT).

The following deals were reported : some 200 bales of cotton from Hyderabad sold at Rs 3985, 200 bales from Shahdadpur at Rs 3985, 400 bales from Shanghar at Rs 3985-4000, 600 bales from Khanewal at Rs 3985-4100, 1000 bales from Burewala at Rs 4200, 400 bales from Gajjo at Rs 3975-4050, 200 bales from Pir Mahal at Rs 400, 200 bales from Arifwala at Rs 4100, 200 bales from Mian Channu at Rs 3975 and 1000 bales from Chichawatni at Rs 4000, dealers said.

===========================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
-----------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================
Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
===========================================================
37.32 Kgs 3,700.00 50 3,750.00
Equivalent-------------------------------------------------
40 Kgs 3,965.00 50 4,015.00
===========================================================

 

[rakeshmalik]

US cotton weekly export sales
WASHINGTON (July 19 2008): USDA cotton export sales highlights for latest reporting week. Net Upland sales of 56,800 running bales were up 6 percent from the previous week and 45 percent from the prior 4-week average.

Increases reported for China (15,300 RB), Hong Kong (8,000 RB), Taiwan (7,000 RB), Turkey (6,300 RB), Mexico (6,200 RB), and Thailand (4,500 RB), were partially offset by decreases for Indonesia (1,000 RB). Net sales of 282,700 RB for delivery in 2008/09 were for China (183,900 RB), Indonesia (31,400 RB), India (13,400 RB), and Thailand (11,400 RB).

Exports of 258,600 RB were down 9 percent from the previous week and 16 percent from the prior 4-week average. The primary destinations were China (110,800 RB), Turkey (28,100 RB), Indonesia (22,000 RB), Mexico (17,800 RB), Pakistan (14,800 RB), and Taiwan (13,900 RB). Net American Pima sales of 1,300 RB were primarily for Hong Kong (700 RB), Egypt (300 RB), and India (300 RB). Exports of 3,300 RB were mainly to India (900 RB), China (900 RB), and Japan (500 RB).

 

[rakeshmalik]

Karachi Yarn Market Rate
RECORDER REPORT
KARACHI (July 20 2008): Karachi Yarn Market Rates on Saturday (July 19, 2008).
=================================
CONES CARDED
=================================
10/1
Popular Fibre 650.00
Diwan 680.00
16/1
United 720.00
M.G.M. 700.00
Popular Fibre 700.00
21/1
Ishtiaq Tex 730.00
Al-Karam (A.K.) 750.00
Suriya Tex 750.00
United 750.00
GulAhmed (G.Lite) 760.00
Popular Fibre 750.00
Shadman 725.00
Indus Dyeing 760.00
22/1
Bajwa 730.00
Popular Fibre 730.00
United 780.00
Shadman 735.00
Ishtiaq Tex 730.00
26/1
AL-Karam 800.00
Dewan 800.00
Amin Text 790.00
Shadman Cotton 790.00
Diamond Int'l 780.00
Popular Spinning 770.00
Bajwa 775.00
28/1
Abdullah Textile 840.00
30/1
Amin Tex. 840.00
Al-Karam 850.00
Jubilee Spinning 840.00
Apolo Tex. 830.00
GulAhmed (G.Lite) 860.00
Shadman Cotton 830.00
32/1
Abdullah Textile 850.00
20/2
GulAhmed 780.00
Amin 780.00
Indus Dyeing 780.00
Bajwa 740.00
Shadman Cotton 770.00
42/1
Abdullah Textile 870.00
52/1
Abdullah Textile 950.00
20/1 SLUB
Abdullah Textile 775.00
30/1 SLUB
Abdullah Textile 900.00
60/1
Abdullah Textile 1100.00
70/1
Abdullah Textile 1225.00
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COTTON AUTOCORO
---------------------------------
7/1
Dostsons Coro 580.00
8/1
Dostsons (Soft) Coro Kni 580.00
10/1
Dostsons Coro 600.00
Dostsons (Soft) Coro Kni 600.00
22/1
Dostsons Coro 740.00
---------------------------------
CONES COMED HOSIERY CHEES CONES
---------------------------------
10/1
Kasim Tex. 550.00
Latif Tex. (Latif) 460.00
Super 460.00
Abdullah Textile (O.E.) 460.00
16/1 (O.E.)
Kasim Textile 600.00
Masal 560.00
---------------------------------
RATES OF PAKISTANI
---------------------------------
POLYESTER YARN (PER LBS)
---------------------------------
50/36 FLAT
Rupali 75.00
Gatron 77.00
75/72/INT FLAT
Rupali 64.00
Gatron 64.00
75/48/0 DTY
Rupali 70.00
Gatron 70.00
75/36/0
Gatron 70.00
Rupali 70.00
75/108 DTY
Gatron 84.00
Rupali 83.00
300/96/INT DTY
Rupali 64.00
Gatron 65.00
300/96/0 DTY
Rupali 61.00
Gatron 61.00
75/24/0 DTY
Rupali 70.00
Gatron 70.00
75/24/INT DTY
Rupali 75.00
Gatron 75.00
150/48/0 DTY
Rupali 63.00
Gatron 63.00
150/48/INT DTY
Rupali 67.00
Gatron 68.00
---------------------------------
RATE OF BLANDED YARN
IN RUPEES (PER LBS)
---------------------------------
P.V. CONES
---------------------------------
18/1 P.V.
A.A. Textile 78.00
Salfi 78.00
20/1 P.V.
A.A. Textile 79.00
24/1 P.V. BRIGHT
A.A. Tex. 80.00
Sana 79.00
Salfi 159.00
26/1 P.V. Bright
A.A. Tex. 82.00
Sana 80.00
36/1 PV (S.D.)
A.A. Textile 89.00
Salfi (90/10) 86.00
Salfi (80/20) 88.00
46/1 PVB
Ibrahim Fibre 94.00
40/1 (PVB)
Salfi 88.00
Sana 90.00
46/1 PVSD
A.A Textile 95.00
30/1 PV SLUB
A.A. Clock Tower 101.00
Sana 101.00
20/1 PVT
Sana 84.00
30/1 PVT
Sana 90.00
20/1 P.P
Sana 76.00
30/1 P.P.
Chakwal 74.00
Sana 80.00
Anwar 72.00
Diwan 76.00
60/1 (P.P.)
Anwar 97.00
Agar 91.00
Rawal 93.00
60/2 P.P.
Salfi Embriody 112.00
Anwar 104.00
---------------------------------
P.C. COMBED
---------------------------------
10/1
Gani (four square) 48.00
16/1
Gani (four square) 52.00
A.A. SML Carded 71.00
20/1
Khawja 64.00
Bilal 64.00
A.A. SML Carded 75.00
Zainab Tex (Combed) 75.00
---------------------------------
P.C. CARDED
---------------------------------
22/1
Gani OE (GSM) 54.00
A.A. Spinning 73.00
24/1 PC
A.A. SML Combed 78.00
A.A. PC Carded 75.00
26/1 PC Carded
A.A. SML 77.00
30/1
Zainab Textile (combed) 81.00
Gani Spinning (four squa 72.00
Island 75.00
Khawaja 73.00
K. Nazir 74.00
Al-Karam 74.00
Diwan 74.00
30/1 PC Carded
A.A. SML 80.00
36/1 PC Combed
A.A. Textile 88.00
40/1 PC
Khawaja (Carded) 83.00
A.A. Textile (Combed) 91.00
---------------------------------
VISCOSE 100%
---------------------------------
30/1
Salfi 120.00
35/1
Salfi 110.00
Sana 129.00
40/2
Salfi 120.00
45/1 PC (Carded)
Zainab Textile 98.00
---------------------------------
SEWING THREAD YARN
---------------------------------
Salfi
21/2 PP 90.00
21/3 PP 90.00
21/4 PP 91.00
30/2 PP 92.00
40/2 PP 100.00
50/2 PP 109.00
50/3 PP 109.00
Sana
21/2 PP 89.00
21/3 PP 89.00
21/4 PP 90.00
34/2 PP 91.00
40/2 PP 97.00
50/2 PP 108.00
50/3 PP 108.00
---------------------------------
READY RATES OF STAPLE FIBER
IN RUPEES
---------------------------------
POLYESTER K.G.
---------------------------------
I.C.I. 1.2 (SD) 120.00
I.C.I. Bright - T 122.00
P.S.L. 1.2 (SD) 120.00
Rupali 1.2 (SD) 120.00
Ibrahim 1.D 121.00
Dewan 1.D 121.00
I.C.I. 1.D 121.00
P.S.L. 1.D 121.00
Rupali 1.D 121.00
---------------------------------
POLYESTER K.G
---------------------------------
Dewan Salman (SD) 120.00
Bright 122.00
Trilobal Bright 122.00
Ibrahim Fiber (SD) 120.00
Trilobal Bright 122.00
Bright 122.00
---------------------------------
ACRYLIC FIBER K.G.
---------------------------------
Acelon Korea 2Dx51 200.00
Monty 1.2x51 200.00
Acelon Korea 1.2x51 200.00
---------------------------------
VISCOSE K.G
---------------------------------
FCFC 44 MM 185.00
FCFC 51 MM 183.00
Graysun India 183.00
Tahaire 51 MM 183.00
S.P.V. Ind. 51 MM 183.00
Pak Rayon (RnR) 170.00
=================================

 

[rakeshmalik]

cotton yarn export
Yarn export from India declined 7% in April 2008 from the March 2008 levels. A total of 55.97 thousand tons of yarn was exported during the month, of which, cotton yarn was around 43 thousand tons. Thus, cotton yarn accounted for over 70% of total yarn export..


Count-wise, 30/1 was the highest amongst all counts with 12,551 tons being exported in April at an average unit price realization of US$ 2.66/kg.

 

[rakeshmalik]

New York Close (vs. previous week)
Oct08 70.35 -28 May09 80.38 -36
Dec08 73.24 -35 Jly09 81.63 -44
Mch09 78.64 -39 Oct09 83.93 + 6
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Cotlook A Index (FE)
2007/08 77.25 +0.20
2008/09 79.30 +0.05
U.S. Exports Net Sales
Accumulative 15,050,800
Weekly 58,100
China 15,300
Hong Kong 8,700
Taiwan 7,000
Wkly Shipments 261,900
CCC Loan Outstanding
5,228,748 -276,221
NYK Open Interest
219,147 -2,310
Net Speculators’ Position
Long 3.0% -3.2%
NYK Certificated Stocks
1,715,082 +23,131
Awaiting review 18,042
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U.S. Crop 2008/09 – Harvesting of the South Texas crop is just getting
underway. Scattered showers fell over most parts of the cotton belt last
weekend and earlier this week. West Texas received wide spread coverage,
but it was very light rain, the benefit came from a slight reprieve from the
heat. USDA’s drought monitor as of Tuesday shows the area abnormally dry
to normal. Overall, the U.S. crop showed some improvement this week, up
1% in the good-to-excellent rating at 46%, but still well below last year at 55%. The crop is behind the
five year average as percent squaring is 71% (versus 74%) and boll setting 27% (31%).

ELS - Prices for ELS cottons have increased since the middle of December by 20% for Egyptian Giza 88,
26% for U.S. Pima and as much as 43% for Egyptian Giza 86. During the same time, the difference
between Cotlook’s A Index and Giza 86 prices has risen from 18.85 cts./lb or 28% over the A-Index to
47.25 cts./lb, equivalent to 61% over the A-Index. Looking at the more recent past, a Giza 86 premium of
61% is, however, nothing very spectacular; for example, back in November 2005 the premium had been
75.00 cts./lb equal to 130%. What made the situation difficult for many to understand are the rather
abrupt changes from December 2007 (when the premium was at a record low) and the current high level.
Looking at the ELS supply and demand side, the situation will not change quickly and the premiums for
ELS cotton over the A-Index are expected to grow further.
For Egypt, most experts at this stage expect a 2008/09 crop of around 130,000 tons. This compares with
225,000 last season. In 2008/09, only two varieties have been planted for export, Giza 86 and Giza 88.
For Giza 86, the production is estimated at 80,000 to 85,000 tons, a reduction of close to 50,000. For
Giza 88, first estimates point to a crop of roughly 20,000 tons, which compares with 37,000 in 2007/08.
Carryover into 2008/09 will be close to nil. In order to have at least some cotton left for export, the local
Egyptian textile industry will have to drastically step up upland imports. At this stage, we think that
imports may well reach over 120,000 tons, leaving around 50,000 to 60,000 of Egyptian Giza 86 and
Giza 88 for export. This is the smallest exportable surplus in more than a dozen years and compares
with export sales of 135,000 tons in the current season 2007/08.
Other ELS growths do not offer a remedy either! In the U.S., there are quite a few experts who are
estimating that the Pima crop might well be below 400,000 bales U.S.-wide. Even if the crop should yield
slightly more at the end, this is one of the smallest crops ever and compares with 850,000 bales in
2007/08. Available export surplus will be drastically reduced during 2008/09 as it begins the season with
practically no carryover stocks. In China, ELS is not faring any better. According to most experts, the
acreage has been lowered by 30 to 40%. Chinese mills will have to increase imports again during the
2008/09 season, further aggravating the very tight supply and demand situation. In Central Asia, ELS
planting has also taken a big hit. Instead of 47,000 tons produced in 2007/08, the coming 2008/09
season may not yield more than 25,000, a reduction of 47%. No better news is forthcoming from Israel
where the 2008/09 Pima crop will be around 5,000 tons as compared with 17,000 last season.

 

[rakeshmalik]

Lint prices stable at Rs 3900-4000, spot rate raised to Rs 3700

KARACHI (July 21 2008): Expectation that timely rain with no major pest attack will yield good cotton, backed also by PM's assurance that textile sector problem will shortly be solved consumers returned to market. Spot rate was at Rs 3650 on the opening day. It stood at Rs 3700 on the last of the week on July 19, 2008.

WORLD SCENARIO:

The cotton futures on NYSE came under impact of investment fund, and, indeed, grain reports from Chicago and other markets that led to fall. The leading players saw futures to stay infirm as low prices discouraged sowing in cotton growing countries. The key December contract shed 1.56 cents to 72.03 cents a pound. On the opening day futures could not hold firm owing to weakness as sales by investment fund hit it.

On Tuesday against general belief that next few sessions will experience depressed going futures rose sharply on oil prices encouraged buying leading to surge in cotton value. A leading analyst said run-up came after option related buying took market into buy stops overhead over 73.39 cents basis December. The close in December contract represents a technical signal that may lead to further buying over the next few sessions. They saw support in December contract at 73.60 and 72.50 cents, while resistance at 74.40 and 75.25 cents.

On Wednesday follow through purchases continued by investors aggressively leading to consecutive three days rise. Players said the market has managed to build on its gains from previous session enjoying support around 72 cents basis December. However, leading analysts hinted that fundamental outlook for cotton will depend on 2008-09 cotton crop despite threat to global economic growth.

On Thursday trend retreated as futures submitted to investors sales besides declining trend in grains also aided downward drift. Crop situation is under continuous monitoring, rise and fall will dictate market trend. However, in August US production along with production world-wide will present reliable data.

On Friday session futures bounced back on support from late investor buying. Futures ignored grains across the board decline said to be due to fundamentals remaining strong. The December rose on the day by 0.13 cent to 73.24 cents a pound. The players now, besides other numbers watch cotton productions and progress in the US, China, India and Pakistan.

LOCAL TRADING:

Generally small lot sales were marked on the cotton market despite the fact that target at 14.1m bales were revised to 12.6 million bales. Nearly 5000 bales were sold on the first day's trading at Rs 3950 to Rs 3975 per maund. The rains are behaving well but growers were apprehensive if such gainful rains will continue. The feeling that farmers have already opted for other crops naturally tell on the cotton crop.

But the low prevalent price may not be only reason for low acreage but farmers common fear that Pak millers and spinners soon turn to heavy imports from any country. The trend in Pakistan could be stopped if authorities ensure that growers would get good returns without creating for them problem by lifting at late intervals. Phutti in Sindh was costing Rs 1850/1900, while in Punjab Rs 1750/1800. The current season should act as reminder how cotton consumers spent nearly Rs 1 billion on imports of 4 million bales from India and elsewhere.

On the second session spinners and millers returned to cotton market believing in bumper crop, which ensures low prices. It was also perhaps, textile millers meeting with PM that led to Faisalabad strike call off. The exporters of cotton however, were on the sideline. Total sales were determined around 5,000 to 6,000 bales.

The market operators pessimistic for past sometime have been enlivened by increased buying. On Wednesday millers renewed buying interest was marked. The growers stepped up supplies of seed cotton, naturally pulling prices down and increased buying support. But ginners were adamantly holding prices generally firm leading to decision by consumers to keep buying strictly per their needs. The total buying was around 7000 bales between Rs 3800 and Rs 3875.

On Thursday buyers took a rest for they had done good buying, besides, on the day some firm trend kept them away from market, spot rate holding firm for some days was pushed higher by Rs 25 to Rs 3675. The buying thus was restricted to over 1000 bales at prices ranging between Rs 3900 and Rs 4000. Phutti in Punjab was selling at RS 1900/2000, while in Sindh it was seen put at Rs 1900 per 40 Kg.

On Friday another Rs 25 rise was effected in spot rate to Rs 3700, phutti was by and large same as on previous day. The one day break had no effect on the sales, buyers returned with revenge and lifted some 3000 bales of cotton prices ranged between Rs 3950 and Rs 4000 per maund. The market sources said they hoped spinners and miller will continue to lift owing to, though entirely satisfactory, indications from the government to give whatever coffer will allow to boost textile exports.

On Saturday persisting demand by the mills and exporters helped the prices to maintain the obtaining levels. The Karachi Cotton Association (KCA) official spot rate maintained the overnight level at Rs 3700. Phutti prices in Punjab were at Rs 1925-1975, while rates in Sindh were firm at Rs 1900-1925. Market sources said that it is first time in the history of country that during the months of June-July phutti arrivals have started in the Punjab. As a result of good arrival figure, Pak exporters finalised a deal to sell 10,000 bales of cotton, market sources said.

Indian importers were in the country and seeking fine quality of cotton, but not ready to pay beyond their psychological levels, reports said. Some 4400 bales of cotton changed hands as 200 bales from Hayderabad sold at, 200 bales from Shahdadpur at Rs 3985, 400 bales from Shanghar at Rs 3985-4000, 600 bales from Khanewal at Rs 3985-4000, 1000 bales from Burewala at Rs 4000, 400 bales from Gajjo at Rs 3975-4000, 200 bales from Pir Mahal at Rs 400, 200 bales from Arifwala at Rs 4000, 200 bales from Mian Channu at Rs 3975 and 1000 bales from Chichawatni at Rs 4000, dealers said.

PRODUCTION HALT, WORKERS LOSE JOBS:

Problems are for world-wide businesses and quite recent phenomenon. Making utter helplessness a ground for purchasing odds with government is to destabilise every conceivable strength the government, country, businesses, exports and economy stand on. Fact of the matter is that every government tries its level best to keep factories wheels running. After all government cannot run state without money, more particularly exports earning.

The textile units have been trouble, as they have always been in the past. The genuine ails are always in view of the government that even today is give and take should be the motto. Every one should be reasonable to keep fighting odds to ensure other development and state of economy. The textile sector has to be kept going so that it in return pays back hefty forex to the government.

The time is so ripe as exporters must have been in full gear to supply Xmas orders, it is expected some viable solution emerges. The government is three/four months old with issues that seem insurmountable. So exporters should look beyond government help, if possible, so that scores are settled on some opportune moment.

On government's part, all relevant people know must be on way to find help it can render to them. When met with problems and country reaped full harvest during Xmas and beyond, both government and leaders from textile sectors should sit with clear mind and issues to discuss what led to recent drawback and those, which has possible stuff should be stopped. And, like China, big and small things should be produced for exports. Let the decade see Pakistan placed on tracts of exports and exports done.

TALKS DIM ABOUT COTTON TARGET:

The resounding call to do away with the constraints in production of cotton/textile exports encourages feeling that help will reach soon. The Xmas shopping calls for doing quickly to make up the shortfall being felt. The feeling is for short-term exports, but what about the coming days. Monsoons have broken in parts of India injecting hope of various types of good grain and other crops including cotton.

In Pakistan rains have been visiting but from farmers there are no words as to they are any useful. Even ginners have not been showing either way reaction. The market reaction too here is very difficult to get at. The week that ended showed spot rate down at Rs 3650 and rates in ready around Rs 3825/3900. The spinners and millers had started visiting and lifting lint showing that the quality and prices suit their disposition. In fact the exporters have been set coalition government was coming.

The textile minister has recently indicated that latest rise in gas and oil prices may be rationalised to enable them to compete ably with the regional rivals. For whatever reason they enjoy an edge. Along with this, authorities are cautioned to be sure adequate land is set apart for growing cotton 14.1 million bales, which is considered minimum requirement.

Gradual increase in the volume should be in view so that the mills keep going without break.

THREAT CARRIED OUT:

Let the authorities reach the bottom of real problem, which unfortunately had new set-up to chose. Slight understanding of the problem was achieved by the authorities in the previous government too who released a package but showed reluctance to yield further. The decision may have also been hit by fast approaching polls, which were hardly predictable.

The same patent approach was faced by the present authorities but budget failed to reflect the demand of the exporters and an ECC meeting considered possibly to discuss and debate further. The exporters however, were feeling the pinch of high cost of doing business and nearly impossibility to venture exports. Hence threatened to let mills cool down after July 11, 2008, and in fact the most of them stood by their decision and in most cases machines stopped making the pleasant sound they were determined to produce and help exports.

Why such a situation exists in Pakistan? There are some present set-ups trying to bring into light. Unnecessary or non-essential items will face curbs. Noise could be heard in the past that Tibet products are inferior to none but-Perhaps every successive government knew that imports are eating the vitals of this country and in many ways.

Imports are paid in foreign exchange, under invoicing and over invoicing are game also played under the cover, besides, in case of machinery who checked they once unloaded at Pak sea ports were actually new or the scrapped ones? After 60 years even today authorities have failed to fix the number of actual taxpayers. Do all pay taxes and what from--. The authorities should fix priorities, as gradually bring in line with today's developed countries - Exports too will be produced within the limits that will compete products without burdening the still unsettled government with packages!

OVERALL COTTON CROP CONDITION GOOD:

Almost initial report on various crop-datelined Lahore speaks so good as to hope from cotton to wheat, rice and sugar crisis was unlikely. However, the agricultural field staffs were active enough to locate some pest attacks here and there and troubled to inform farmers to maintain watch so that losses are avoided. The reaction of farmers was not given. It is hoped field workers will take care of the crop and keep asking farmers to be alert for their own sakes and for country's economy and strength.

While taking lightly the presence of mealy bug and emergence on the tender plants of cotton crop, care was advised. This would be enough in places where farmers apart all relevant people including the pesticides sellers are not only conscious but also honest. However, what question comes to mind right at the moment is it not carelessness that only a little effort can eliminate mealy bug attack of which has been announced in quiet tone.

Mealy bug and CLCV are easy to keep watch on as allow to play havoc with the crop. The experts who have watched how the diseases or viruses have been controlled in developed countries hint at good and deep ploughing before sowing to ensure no sign of the same stick to the ground. As far as mealy bug is concerned it appears on the infant plants, which offer soft and sweetly food for them on which bugs survive.

The experts also warn that taking only cotton for breeding ground for the mealy bug is misconception. Dozens of crop, the ones are harvested in Pakistan are mealy bug target, as all have to undergo the infant period when tender leaves spring up being the 'staple food'. Once again danger is at the doorstep, so the agri department and farmers have to begin with effective fight if they possibly can do. Certainly, unfortunately the lack of necessary drugs at doorstep as and when required is immediate danger, which help flourish the pests and viruses.

Unfortunately this country is import house for fellow developing countries and developed countries. The new coalition government should keep watch on lints flow from left and right!

 

[rakeshmalik]

Cotton lint gains in west India
19 Jul 2008 3:18 pm

Mumbai - Cotton lint was quoted higher by Rs 100-Rs 200/candy amid fresh demand from millers at the spot market across western India Saturday. Earlier it was being assumed that cotton lint from other countries will arrive in the country following abolition of import duty, but the latest figures show that even the international markets are short of cotton stocks.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,500-Rs 28,000/candy while average-grade traded at Rs 27,300-Rs 27,400/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 27,500-Rs 27,800/candy; 29MM cotton lint traded at Rs 28,100-Rs 28,300/candy; while 30+MM cotton lint traded at Rs 28,400-Rs 28,700/candy; and 31+MM cotton lint traded at Rs 28,800-Rs 29,000/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 27,500-Rs 28,000/candy; 29/30MM cotton lint traded at Rs 28,100-Rs 28,800/candy; and 31MM cotton lint at Rs 28,900-Rs 29,000/candy; and DCH variety traded at RS 31,500-Rs 33,000/candy.
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Cotton lint steady in north India
19 Jul 2008 3:09 pm

Abohar - Cotton lint traded unchanged at the previous level amid sluggish business at major markets across north India Saturday.

Across Punjab, cotton lint traded at Rs 2,810-Rs 2,815/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,790-Rs 2,795/maund at Malot and Gidarbha; Rs 2,775-Rs 2,780/maund at Abohar; Rs 2,760-Rs 2,765/maund at Manasa; and at Rs 2,810-Rs 2,815/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,740-Rs 2,760/maund in Haryana and at Rs 2,620-Rs 2,700/maund in Rajasthan.

 

[rakeshmalik]

Spot rate raised by Rs 50 as phutti arrivals halt

KARACHI (July 22 2008): Official spot rate sent higher as phutti arrivals halted, dealers said on the cotton market on Monday. The Karachi Cotton Association (KCA) official spot rate was higher by Rs 50 Rs 3750, dealers said. Phutti prices in Punjab were at Rs 2050-2100 while rates in Sindh were firm at Rs 2000-2075, they said.

Some brokers said that phutti arrivals stopped for the time being as the early production in the Punjab appears. to have been exhausted. But the buyers were ready to lift, non-availability has caused sharp rise in the prices. The prices also went up partly because of continued rise in the oil rates in the international as well as local market, they said.

Commenting on the subdued business, they said that buyers were in the market but ginners have failed in availing the chance for better return. The following deals were reported: some 400 bales of cotton from Tando Adam sold at Rs 3990-4100, 200 bales from Hyderabad sold at Rs 4100, 1000 bales from Bhahawalnagar at the same rate, 200 bales from Chichawatni, 400 bales from Burewala sold at the same rate and 400 bales from Sahiwal sold at Rs 3975-4000 and 400 bales from Muridwala sold at Rs 4200, dealers said.

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The KCA Official Spot Rate for Local Dealings in Pak Rupees
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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Ex-Karachi
for Price Sales Tax @ 15%
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37.32 Kgs 3,750.00 50 3,800.00
Equivalent-------------------------------------------------
40 Kgs 4,019.00 50 4,069.00
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