Cotton

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rakeshmalik

Well-Known Member
Good turn over observed on cotton market

KARACHI (September 11 2008): Good trading was seen on the cotton market on Wednesday as mills and exporters continued forward buying, dealers said. The official spot rate was unchanged at Rs 4100, they said. Phutti prices in Sindh were unchanged at Rs 1900-1925 for the third session and in Punjab, the rates were also same at Rs 1800-1900, they said.

According to the market sources, fresh arrival of phuitt pushed the rates lower slightly and it is expected that the prices would show softness in the near future. On the other hand ginners were trying to dispose off all the unsold stock, they added.

The exporters were making deals but in small volume apparently because of slight fluctuations in the dollar rates, they said. On Tuesday, the NY cotton futures finished softer on investment fund liquidation and tumbling commodity markets, with analysts saying the glum mood may lead to further losses this week. Key December cotton futures fell 1.32 cents to finish at 64.28 cents per lb.

Based on the weekly second position daily charts, it was the lowest close for cotton since late in 2007. The contract traded from 63.90 to 65.82 cents. Volume traded in the December contract stood at 15,563 lots at 2:38 pm (1838 GMT).

The following deals were reported: 3600 bales of cotton from Shahdadpur sold at Rs 4100-4125, 2000 bales Tando Adam at Rs 4100-4125, 1600 bales from Sanghar at Rs 4100,100 bales from Shahpur Chaker at Rs 4075-4100, 1000 bales from New Saeedabad at Rs 4075-4100, 1800 bales from Mirpurkhas at 4075-4100, 800 bales from Khipro at Rs 4090-4125, 800 bales from Vehari at Rs 4050-4075,400 bales from Arifwala at Rs 4075, 1000 bales from Burewala at Rs 4100, 1000 bales from Mian Channu at Rs 4075-4100, 800 bales from Chichawatni at Rs 4075-4100, 600 bales from Haroonabad at Rs 4075-4100 and 600 bales from Bhawalnagar at Rs 4075, 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 4,100.00 50 4,200.00
Equivalent-------------------------------------------------
40 Kgs 4,394.00 50 4,494.00
===========================================================
 

rakeshmalik

Well-Known Member
New York cotton futures lower

NEW YORK (September 11 2008): Cotton futures finished easier on Wednesday as players began adjusting positions before release of a government crop report at the end of the week, brokers said. Key December cotton futures fell 0.24 cent to finish at 64.04 cents per lb. The contract traded from 63.63 to 64.87 cents. Volume traded in the December contract stood at 11,350 lots at 2:41 pm (1841 GMT).

Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia, said futures "took the day off after being down so much yesterday." Cotton had tumbled to its lowest level since the end of 2007 on investment fund liquidation, with weak commodity markets also putting pressure on the market.

The trade had been fretting that global economic turmoil would hurt cotton demand despite low production in major producers like the United States and China. "It got down on follow-through sales, stabilised when some trade buying came in and that was pretty much it," a dealer said.

The market will take a look at total US cotton sales in the weekly US Agriculture Department's export sales report. Cotton brokers expect US cotton sales from 30,000 to 100,000 running bales (RBs, 500-lbs each), compared with 24,600 RBs in last week's report. US cotton export shipments are seen hitting 200,000 RBs from 228,400 RBs in last week's data.

Brokers Flanagan Trading Corp pegged support in the December contract at 63.75 and 62.90 cents, with resistance at 64.50 and 65.40 cents. Volume traded Tuesday was 24,117 lots, according to exchange data. Open interest in the cotton market rose 299 lots to 218,631 contracts as of September 9, the exchange said.
 

rakeshmalik

Well-Known Member
Downward trend seen on cotton market

LAHORE (September 12 2008): Low demand of textile goods with stocks piling up in several mills, paucity of bank credit, better supply reports both local and globally for cotton fibre and deepening economic recession in almost all corners of the globe have also put pressure on cotton prices.

Moreover, despite substantial fall in many other commodities including crude oil in recent months, bank failures, wars in Iraq and Afghanistan and lack of business confidence is slowing the economies in a continuous way almost every where.

Thus both local lint prices and fibre futures values in New York have moved down further this week to present a clearly bearish outlook for the present time.

Moreover, with a super bumper cotton output now projected for India following heavy monsoon rains and also Pakistan crop for the current season (2008-2009) now expected to exceed twelve million domestic size bales, cotton prices have taken a dip this week.

Furthermore, with daily cotton arrivals now estimated to be exceeding 30,000 local size bales and also the quality of Punjab lint showing improvement, mills feel that supply of domestic cotton will become comfortable for the foreseeable future. Weakness of cotton prices is also attributable to the estimates that Pakistan can produce between twelve to 12.5 million local size bales this season (2008-2009) which is higher than originally envisaged. Domestic consumption by the mills in Pakistan is being given at about 15.5 million bales.

According to one observation, Pakistani cotton today is the cheapest in the world keeping in mind its fibre attributes and is generally priced around 64 US cents per pound on an ex-gin basis. The supplies to back up any possible deficit later on which may be imported from India or other origins assures Pakistani spinners.

A number of Pakistani spinners are also capitalising on the weaker value of the rupee which is wallowing at its lowest level of about 77 against the US dollar which should make exports more workable. With pleadings from the textile and other made-up goods and converters, government has promised to give more assistance and incentives to prop up the textile industry. Moreover, officials also promise to improve the power supply position following recent rains which should augment its availability with increase in hydro generation.

Both seedcotton (kapas/phutti) and lint prices were thus lower on Thursday due to continuation of price declines from the very beginning of this week. Seedcotton prices in Sindh reportedly ranged from Rs 1850 to Rs 1900 per 40 kgs. While in the Punjab they were said to have ranged from Rs 1800 to Rs 1850 per 40 kilogrammes. Lint prices in Sindh reportedly ranged from Rs 4025 to Rs 4050 per maund (37.32 kgs) while in the Punjab they ranged from Rs 4000 to Rs 4050 per maund. Total arrivals of the current crop (2008-2009) till this time are estimated to exceed 1,200,000 local size bales.

Later in the evening Punjab brokers also indicated offers for lint around Rs 4000 per maund. The weakness in the ready market is also exemplified by the drop in fixation of ex-gin price of grade three cotton by the Karachi Cotton Association (KCA) which has been reduced from Rs 4125 per maund (37.32 kgs) on last Monday to Rs 4025 per maund on Thursday, a fall of Rs 100 per maund.

President Asif Ali Zardari took oath of office on last Tuesday (9th September 2008) and thus became head of state. Though the economic and business condition of Pakistan essentially remains in the doldrums, at least a section of society looks forward to a gradual settling down of the day to day working of the government which could impart at least a modicum of normalcy against the uncertainty which had been prevailing in the country over the past several months. However, there remain too many social, and political problems in the country which require prompt and serious attention.

Sale of 400 bales of cotton each from Shahdadpur and Tando Adam were reported at Rs 4025 per maund (37.32 kgs) in the evening while earlier in the day 1200 bales from Tando Adam and 2000 bales from Shahdadpur had also sold at Rs 4050 per maund. In Punjab styles, 400 bales from Bahawalnagar reportedly sold at Rs 4025 per maund and 400 bales from Gojra had sold at Rs 4050 per maund.

In the evening, brokers from Punjab informed that ginning outturn (got) was remarkably higher this season (2008-2009) and thus it would not be surprising if the total ex-gin output of lint in Pakistan may touch 13,000,000 domestic size bales. Such a situation would benefit the entire textile economy extending from the grower and the ginner down the chain to the spinner, the weaver and the garment maker.
 

rakeshmalik

Well-Known Member
Phutti arrivals push rates down on cotton market

KARACHI (September 12 2008): Panic selling was witnessed on the cotton market on Thursday as ginners adopted flexible attitude towards prices as a result of increase in phutti arrivals, dealers said. The official spot rate was lowered sharply by Rs 75 at Rs 4025, they said.

As a result, phutti prices in Sindh dropped modestly by Rs 25 to Rs 1875-1900 and in Punjab, the rates also came under pressure at Rs 1800-1850, they said. Market sources said that despite the firm dollar rate, the exporters were on the sidelines on anticipation of more decline in prices.

The ginners were under pressure and indulged in panic selling of cotton, giving an impression that the price may continue falling in the coming days, they added. They said that the continued fall in the NY cotton futures, could be another factor behind the bearish rates in the local market.

On Wednesday, the NY cotton futures finished easier as players began adjusting positions before release of a government crop report at the end of the week, brokers said. Key December cotton futures fell 0.24 cent to finish at 64.04 cents per lb. The contract traded from 63.63 to 64.87 cents. Volume traded in the December contract stood at 11,350 lots at 2:41 pm (1841 GMT).

The following deals was reported: 3200 bales of cotton from Shahdadpur sold at Rs 4065-4075, 2200 bales from Tando Adam at Rs 4065-4075, 2600 bales from Sanghar at Rs 4050-4075,2000 bales from Mirpurkhas-Sultanabad sold at Rs 4025-4065, 600 bales from Shahpur Chakar at Rs 4075, 400 bales from Nawabshah at Rs 4075, 600 bales from Nawabshah at Rs 4050, 1200 bales from Hala at Rs 4075, 600 bales fro Hyderabad at Rs 4050, 1200 bales from Bhawalpur at Rs 4025-4050, 1000 bales from Burewala at Rs 4050-4075,1000 bales from Mian Channu at Rs 4050-4075,1200 bales from Chichawatni at Rs 4050-4075, 600 bales from Arifwala at Rs 4050, 800 bales from Pakpattan at Rs 4025-4050, 400 bales from Khanewal at Rs 4100 and 400 from Vehari at Rs 4050, 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 4,025.00 50 4,125.00
Equivalent-------------------------------------------------
40 Kgs 4,314.00 50 4,414.00
===========================================================
 

rakeshmalik

Well-Known Member
Selling pressure continues on cotton market

KARACHI (September 13 2008): Firmness prevailed on the cotton market on Friday as mills and spinners were busy in forward buying as prices were matching with their psychological levels, dealers said. The official spot rate was retained at the overnight level at Rs 4025, they said.

Phutti prices in Sindh were unchanged at Rs 1875-1900 and in Punjab, the rates also were unmoved at Rs 1800-1850, they said. Some brokers said that interesting thing was that the mills were making strong buying in anticipation of low production during the current season.

This factor is helping the ginners as they are on the safe side not on the losing side because prices are not so much down, they observed. Soft trend during the last several sessions on the market was due to fresh arrival and partly because of continued fall in cotton prices in the international market, as well, they said.

One thing is clear that if the exports of textile items improved, the prices of cotton may come up, they said. On Thursday, the New York cotton futures finished with small losses on Thursday as players tweaked positions before Friday's release of a government crop report, brokers said.

Key December cotton futures shed 0.18 cent to finish at 63.86 cents per lb. The contract traded from 63.64 to 64.47 cents. It was an inside day since the range was within Wednesday's 63.63 to 64.87 cents band. Volume traded in the December contract stood at 10,520 lots at 2:38 pm EDT (1838 GMT).

The following deals were reported as some 4200 bales of cotton from Shahdadpur sold at Rs 4025-4050, 4000 bales from Tando Adam sold at Rs 4000-4050, 2600 bales from Sanghar at Rs 4000-4050, 2400 bales from Mirpurkhas-Sultanabad at Rs 3975-4025, 1000 bales from Shahpur Chaker at Rs 4000-4025, 1200 bales from Hala at Rs 4025-4050, 1200 bales from Khipro at Rs 4000-4025,200 bales from Oderolal at Rs 4050, 200 bales from Punjmoro at Rs 4052, 800 bales from Khanewal at Rs 4040, 1600 bales from Burewala at Rs 4000-4050, 1000 bales from Chichawatni at Rs 4025-4050, 600 bales from Mian Channu at Rs 4025-4050, 200 bales from Arifwala at Rs 4040, 800 bales from Garhmarja at Rs 4025-4050, 200 bales from Hasilpur at Rs 4025, 200 bales from Pakpattan at Rs 4025, 400 bales from Gojra at Rs 4000 and 200 bales from Fort Abbas 4025, 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%
===========================================================
37.324 Kgs 4,025.00 100 4,125.00
-----------------------------------------------------------
Equivalent
-----------------------------------------------------------
40 Kgs 4,314.00 100 4,414.00
===========================================================
 

rakeshmalik

Well-Known Member
September 12, 2008
cotton market position

Cotton prices collapsed this week under the weight of losses in other commodities. However, the bearish record U.S. and world carryover levels should carry part of the blame. With prospects for the world crop size to increase, coupled with stagnant consumption around the globe, carryover levels became far to heavy for not only the market to hold the 67 cent level, but to fall through its 65 cent support and back to the year ago level just above 63 cents. Support at 63 cents, basis the New York December contract, should prove to be very significant.

As if the market knew a very bearish USDA world supply demand report was forthcoming, prices broke early in the week and fell to near 63 cents before finding support. Friday morning’s USDA report then provided the news behind that very strong break in prices. Yet, the market rebounded on the USDA report, making a very strong statement that prices have actually bottomed, albeit some four cents below expectations.

USDA increased its estimate of the world crop to 112.17 million bales, up only marginally. However, 2008-09 usage was reduced some 840,000 bales, down to 123.70 million bales. Incorporating a slight increase in beginning stocks, USDA now estimates 2008-09 carryover will be 52.32 million bales, up 1.34 million bales from last month’s estimate. Chinese production was left unchanged at 35.5 million bales. However, consumption was lowered to 53 million bales, down 500,000 bales from the prior estimate. More importantly, China’s absence from the world import market was noticed forcing USDA to lower its estimate of Chinese imports to 12.0 million bales, down 1.0 million from its August estimate.

Other notable changes included a decrease in the Pakistani crop, down 500,000 bales to 9.0 million. However, that was offset by an increase in the Indian crop, up 500,000 bales to 24.5 million. The U.S. crop was increased 80,000 bales, up to 13.85 million. The one million bale reduction in Chinese imports led to a 500,000 bale reduction in U.S. exports, with that estimate now at 14.5 million bales for the 2008-09 marketing season. U.S. carryover is now estimated at 4.9 million bales, up 300,000 from USDA’s August estimate.

Other potential near term bearish news lies in the weekly Cotton On-Call report and indicates the unfixed call purchases (futures needing to be sold) versus the unfixed call sales (futures needing to be bought) shows that December purchases out number sales. This has the tendency to be bearish. However, the report suggests that large quantities of call sales exist for the March, May and October 2009 period.

The weekly export sales report made it clear why USDA reduced its estimate of U.S. exports. Net export sales for the week ending 9-4-08 were 140,200 RB with Upland sales totaling 138,300 RB and Pima 1,900 RB. Primary destinations for Upland were Turkey, (34,400 RB); Mexico and Indonesia. The primary destinations for Pima were Japan (900 RB) and Peru. Shipments were only 235,300 RB. Upland shipments were 233,700 RB and Pima shipments were 1,600 RB. Primary destinations for Upland included China, (81,900); Mexico and Turkey. Thailand (1,000 RB) and South Korea were the primary destinations for Pima.

You can access an excellent discussion of the report next Tuesday (Sept. 16) on the monthly Ag Market Network live broadcast at 7:30 AM Central time. Call 1-888-889-5345 to listen over the telephone. Additionally, the conference will be aired live over radio station KFLP 900 AM, Floydada Texas. The program will also be aired live at www.AgMarketNetwork.net and a recording of the discussion will be at the same website the remainder of the month.

If it seems anticlimactic to you, then know it is very anticlimactic to me. This week’s 63 cent low should be the low for the year. However, if the world crop escalates any further, then the 60 cent mark could be tested. I do not believe it will, but…… Nevertheless, the bullishness surrounding the crop to be planed tin 2009 still holds.
 

rakeshmalik

Well-Known Member
Mealy bug traced in cotton: agriculture department claims crop is robust

LAHORE (September 14 2008): Compared with cotton production last year when it was severely damaged by the mealy bug attack, a healthier cotton crop sown over 5,800,000 acres in Punjab is growing robust and healthy, claims Agriculture Department, Punjab. Cotton output is expected to be better this year, according to agri field officers but the overall crop picture is not as rosy and promising as claimed by the Department.

Data gathered by the Directorate of Pest Warning from various cotton growing districts shows that spots of mealy bug have been observed over 49.78 per cent of the crop this week as compared to 48.50 percent traces of the pest observed last week, which obviously indicates that the bug is more widespread.

The directorate's report on the current cotton crop shows traces of mealy bug on 83.33 percent of the total area under cotton cultivation compared with 57.93 percent last year. The cotton crop area severely affected this year, however, is only 0.90 percent compared to 3.31 percent of the total crop area destroyed by the mealy bug last year.

Mealy bug attack is measured by the yardstick of (a traces b) (patches c) severely affected areas. Another healthy indicator of the current cotton crop is that only 15.76 per cent of the total acreage has 'patches' this year, compared to last year's 38.74 per cent, which may mean the crop had been partly affected or damaged.

According to the report, "A rising success in the bug's incursion on cotton crop as compared to past week and past year is due to its high rate of fecundity, adaptability of its population against high and very low temperature, short life cycle, protective layer on its body, and a high range of alternate hosts.

However, the overall intensity of infestation of the pest as compared to past year is low." Cotton experts feel the data indicates a healthier crop this year. However, they fear that the latent mealy bug can re-activate and multiply itself in the dry weather conditions in coming months.
 

rakeshmalik

Well-Known Member
USDA September crop report on cotton

NEW YORK (September 14 2008): The US Department of Agriculture released its monthly supply/demand report on Friday morning. The following are the key points for cotton. 2008/09 US crop - 13.85 million (480-lb) bales, from 13.77 million in last month's report. 2008/09 US cotton exports - 14.5 million bales, from 15 million in the August report.

2008/09 US cotton ending stocks - 4.9 million bales, from the previous month's 4.6 million bales. 2008/09 world production - 112.17 million bales from 112.16 million bales in the August report.

2008/09 world consumption - 123.70 million bales from 124.54 million bales in last month's data. 2008/09 world ending stocks - 52.32 million bales from 50.98 million bales last month. 2008/09 China production - 35.50 million bales from 35.50 million in last month's data.

2008/09 China cotton imports - 12 million bales from 13 million bales last month. 2008/09 China ending stocks - 16.68 million bales, from 15.94 million last month. 2008/09 India production - 24.5 million bales, from 24 million bales in last month's report.
 

rakeshmalik

Well-Known Member
Cotton lint unmoved in west India
13 Sep 2008 3:16 pm

Mumbai – Cotton lint remained unchanged amid steady arrivals but improved forward business at major markets across west India Saturday. There are reports that millers from Maharashtra and Gujarat and international trading companies have contracted deals.



At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,000-Rs 27,500/candy while average-grade traded at Rs 27,600-Rs 28,000/candy. Around 800 bales of cotton arrived in the State today.



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



At Sendhwa market in Madhya Pradesh, the 28+MM cotton lint traded at Rs 27,400-Rs 27,600/candy; 29MM cotton lint traded at Rs 27,700-Rs 27,900/candy; 30+MM cotton lint traded at Rs 28,000-Rs 28,300/candy; and DCH variety traded at Rs 31,500-Rs 33,000/candy. The State saw arrivals of 400 bales of cotton.
 

rakeshmalik

Well-Known Member
Cotton prices, spot rate turn lower on good crop expectations

KARACHI (September 15 2008): The cotton trading continued full of life and thrilling activity owing to sustained buying despite high rate though some fluctuations were seen in spot rate, coming down to Rs 4000 during the week's last session, phutti prices and asking prices in ready turning downwards during the week ending on September 13,2008.

WORLD SCENARIO:

The cotton futures on the NYCE was impacted by other markets and how the dollar behaved, besides investment fund sales/buying and debacle in financial markets. The market players were disappointed by losing futures and expected further glum.

However, the December futures closed down 0.24 cent to 65.60 cents a pound on Monday. March was down on the day as investment fund indulged in liquidation added to the trend by reports from other markets. The week saw bail out of the financial giants Fannie Mae and Freddie Mac. The market players were also watchful of signals from weekly export sales and monthly supply and demand and damages done to cotton quality and production size.

On Tuesday the overall picture of the trading was not different altogether. The players had little hitch in expressing that trading was borrowing trend from outside markets, while keeping attached to usual USDA reports for real direction.

The damages done to cotton crop quality and production wise were being keenly studied. But as a whole improvement in trading was not seen by them despite the couple of storms hit cotton-producing areas mildly or otherwise.

On Wednesday losing streak maintained on NYCE, as liquidation by players was seen ahead of USDA crop report just in few hours time. The primary wait on Thursday will end when weekly export sales were reported then supply and demand report, which traders expected will give them a direction showing rise in futures in coming days. The futures (Dec) was down 0.24 cent to 64.04 cents. Late trade buying support kept futures somewhat strong.

On Thursday the cotton futures stayed weak despite corn showing nearly steady trend but was impacted by rising dollar value and liquidity before USDA couple of reports to be released shortly. The market, which is keeping generally weak is waiting release of supply and demand report for some positive direction. The players are however expecting 2008-09 cotton estimate lower. The production sizes in China and India will however pull the estimate to reliable size. The global overall economic situation is causing worries among the traders. The last trading session saw up trend in futures as investors indulged in buying encouraged by losing value in dollar and boost in prices of grains. The market sentiment was supported by likely damage to cotton belts in Texas and other areas.

These areas would need hot and dry weather to offset some of the damages in Texas. Supply and demand report was just ignored. The world ending stocks was being raised to 52.32 millions (480 Lb) from 50.98 million bales. Consumption however was cut to 1237 from 124.54 million bales. December was up 0.66 cent to 64.52 cents.

LOCAL TRADING:

Strange spectacle is witnessed on the cotton market, which is not expected normally as was marked during the week under review.

On Monday cotton consumers were on rampage unmindful of the effect they lifted every available bale. The total came to nearly 22000 bales, around Rs 4100 and Rs 4200 while the spot rate held at weekend level at Rs 4125. The market operators were puzzled over the panic buying at Rs 4100/4200, perhaps due to some easing in oil and boosting dollar.

The Sindh phutti prices were held also at the previous day's level at Rs 1900 and Rs 1925. In Punjab phutti was being sold at unchanged levels at Rs 1800 and Rs 1900. As far as the authorities are concerned they are tightening up the ruling leniency such as liberal subsidy.

However, on Tuesday what happened much to the surprise of many that spot rate was dropped, though modestly from present point of view, by Rs 25, despite sustained buying coming without break for the last few days. The phutti prices, were not cut in line and stayed at same level as on previous day both in Punjab and Sindh.

The size of the buying was not as big as on Monday, but was hectic at 12000 bales by the end of the day on Tuesday showing that ginners had for reasons known to themselves why have they turned so lenient!. However, the traders visiting the market had following to say: The cotton production has been spared of some spectacular diseases and disaster and hence a bumper crop is expected. Any way if cotton production reaches the size of target 12.5 million bales, prayers will be on the lips of growers, ginners and indeed, the manufacture and exporters of textile products.

On Wednesday no respite form heavy buying was noted as the consumers lifted around 14000, bales, despite hope that cotton may sell at relaxed value. The sport rate and phutti prices in Sindh and Punjab were unchanged.

On Thursday the consumers fear that rising purchases will cost them has proved somewhat wrong. As growers who have been constantly in touch with the ginners restrained price hike as they know the cotton has good growth and arrivals will smoothen with weather remaining generally workable. Thus the spot rate was pulled down by Rs 75 to Rs 4025; phutti prices were reduced in Sindh by Rs 25 to Rs 1875/1900 and in Punjab price ruled between Rs 1800/1850.

On Friday consumers maintained forward buying as prices matched their psychological scale. Spot rate was unchanged at Rs 4025, phutti in Sindh was selling at Rs 1875 and Rs 1900, while in Punjab stayed put at Rs 1800 and Rs 1850, while in ready off take where over 18000 bales changed hands prices ranged between Rs 4000 and Rs 4050. While growers and ginners presume better harvest, cotton consumers indulged on Friday big lots buying perceiving production to remain below requirement.

On Saturday expectations for current season's production increased due to favourable weather. The official spot rate was lowered by Rs 25 Rs 4000. Phutti prices in Sindh were at Rs 1875-1925 and in Punjab, the rates moved both ways at Rs 1750-1900. Besides, continued fall in the NY cotton market was also a dominating factor in slide in the beginning of the week. Volume was down to 8000 bales, price range down to Rs 3975-4025.

TEX SECTOR WAY OUT FROM FRAGILITY:

The government has decided to convert textile specific research and development (R&D) support is to "draw back" for one year only (until June 2009) while textile subsidy will be completed from next fiscal. The sources said that Ministry of textile Industry has submitted a summary to ECC for R&D support for textile and clothing industry. The separation textiles and clothing is meaningful and will have desirable effect for all times to come.

The yarn and grey cloth exports are as good as semi textile production, which fetch negligible forex. which can be exported if they are surplus the rest should be for local consumption, which when added value yields 10 to 12 times more return and high desirable. The grey cloth and low quality yarn when exported adds to exports of Pak textile ready made garment and other products pretty competitive. Till late more stress was laid on exports of primary products, while local value adders of product begged producers to stop unbridled bulk of yarn and other primary goods but as it goes like this louder voices were heard in the country's capital.

Although the garment sector has not reacted quickly apparently the decision to pass on the draw back facility to garment industry with in house cutting and stitching facilities seems acceptable. This and other ready made products like towels, hosiery, bed-wear etc demand authorities attention better. The past had been stiff for them as a result a year or back so overall exports unfortunately have to import textile machinery, dyes and chemicals worth billions of dollars, which in fact adds to high cost of doing business.

REVENUE IMPACT OF FTAs:

Why our exports have been showing continued decadence, no doubt for lack of correct approach, and deficiency in infrastructure. The authorities probably hardly bothered to figure out two-way revenue impact. Every thing that glistened attracted Pakistanis but at the end of the day lamented on with trade deficit. The Federal Board of Revenue has awakened to the task and approached Ministry of commerce to figure out revenue impact of free trade agreements (FTA) between a couple of countries.

Pakistan signed FTA and PTAs. A loud roar by textile sector that only setback was high cost of doing business without going into the depth of problem, which indeed could have surfaced other facts behind for the apathy. The finding would then have given factors that have kept this sector in perpetual abyss. It is hoped the FBR's inquisitiveness would not end in traditional forming committees and holding conferences and putting the valuable finding on the back burner. If so the interested quarters, sources pointed out may, misguide and malign authorities against promise that inquest bring forth and unfurl the hidden truth.

Pakistan in the last few years have signed FTAs with China, Sri Lanka and Malaysia. The agreements can fetch if two-way trade matched and yielded the assumed benefits. If it was so, our trade and exports particularly textile sector could have been in far better shape. Table can still be turned if whatever is planned and aimed today or tomorrow is pursued diligently and full faith that new government set-up will deliver it has been promising to deliver.

The disappointments through out since independence had demoralised. A slight mistake or mishap that had occured some days back was met with stiff resistance by people who were asked to vote being the master of the land are showing signs of utter indifference. The changing ideas and new moves to mend ways give hope there is sparkle at the end of the tunnel.

COTTAGE INDUSTRIES GAP FILLER:

The large manufacturing units enticed away the rural cottage industrialists to man the big ones - in most cases away from remote corners. The menials would spin yarn from cotton and weave that into Khadis, which tailor made into wears of wide varieties. And, stem-full date trees' fiber and leaves were woven into baskets, bags, purses, ropes etc serving people not in rural areas but in cities and were even exported by entrepreneurs. But it was early in days when Pakistan was born over 60 years back.

The self made skilled workers and raw-hands rushed to get jobs in Jute mills, paper mills and textile mills. The rate of mills sprawling was slow. The cottage industries suffered hugely as they were void of people attached to them. Since they lost charm by illiterates and unskilled, the indelible mark it left on the minds of people still craws and headlines like setting up of mini-industrial estates in rural areas on the cards were meant for giving false hope to hungry and jobless.

The big industrial units are showing signs of tiredness and stagnation as investment local as well as foreign is shy owing to many factors including law and order situation, political will and sluggish movement of files from one table to the next. The need of the hours is that talks must replace action and that by removing the snags, which have resulted in turning this resource-potential country into dumping house of countries producing in tons.

Why only Punjab. Pakistan is an agricultural rich country. Its every inch of rural stretch rich with one or the other product but somewhere financial lag or skill deficiency is keeping people jobless and looking out for signal from areas establishing huge buildings to produce much less than capacity planned.

So with the change in new set-up authorities should project on priorities and move fast to give the project a practical shape at the time fixed. Textile industry should be given respite to plan better and contribute country better. And the mini-industrial units to supplement giant industrials lapses.

HMC REVERTED TO:

The ministry of Industries and Production succeeded in getting the Economic Co-ordination Committee (ECC) to reverse a decision to allow the strategic plans division (SPD) to handle the affairs of HMC, officials sources said. Whenever, HMC mention comes, the high cost of doing business in textiles comes resoundingly in mind. And, more prominently comes to mind Heavy Mechanical Complex must have been dream of some patriotic person to make Pakistan and exports strong.

The idea awakens why even unimportant deed by Pakistan receives prominent places in newspepers, why the achievements of such big project digested without making a hissing sound?

The latest report prominently mentioned that HMC was set up to manufacture industrial plants - all are mentioned by name such as sugar, oil, gas, cement, fertiliser, chemicals, and other industries (textile excluded?) and heavy machinery including construction machinery. Very simple every plant conceivable under the blues, which should have textile machinery making plants. But it is neither mentioned here nor ever made even by a mistake keeping in view that its imports from all the world over the great cost, which adds to high cost of doing business. When one was in quest for textile machinery plants in Pakistan, pleasant story was circulated in newspapers that sugar manufacturing plant was being (about to be exported) exported to Bangladesh. That was once which was not heard whether dream stood fulfilled.

Even the story on September 6, 2008, made passing reference, not giving slight idea plants, like other plants, were being exported to M Ecast, African countries, Bangladesh, Sri Lanka and Indonesia.

These days particularly is too much nagging about high cost of but for lack of plants, which manipulated in a way to tell people of Pakistan have no material and skill and technologies. The prevailing perception is utterly wrong and manipulation is to make few richer and block development of public interest as is evident from weaknesses all-round. Report mentions among others chemical where is chemical or more importantly petro-chemical industries in the absence of which tons of dollar worth dyes and chemicals for textile products are imported.

Yes, supplements do mention about some units producing chemicals, which serve the initial raw material purposes. The sources called upon democratic govt to look into claims of high cost of doing business, which hangs on deliberately, they said!

NO NEED FOR BINOCULARS:

When textile sectors in recent months nearly surrendered to export products matching regional rivals, some one among authorities whispered this to be replaced by any knowledge based sector. While the knowledgeable circles do not entirely agree with word to replace textile sector, propounded that exports must jump to save economy from collapse. It seems textile exporters have somehow managed to surmount local and foreign created road blocks and probably leniency shown by authorities to stand and force them to realise hinting textile sector replacement by other products is still difficult.

God gifted cotton, looked down by foreign importers, who rob this country of dollar one billion or more annually, and go by their idea is to deny the potency this gift of God offers.

What was the immediate and important need to look into the not so loud demand of the cotton growers and ginners, who give to meet their input cost and marginal profit to survive, much improved lint could be supplied to make up quality rather better than what seen as inferior. While improving the cotton production, reasonable gains of the suppliers, should authorities give importance of what wealth is being "dug out" by self-made "Karigars" of Sialkot.

Not long before reports about the great achievement by very much Pakistanis, other than textile sector's. The forex of course did not match its size, but promise showed stuffs being made in Sialkot and exported products need genuine interest of the new government to increase manifold, sports goods, musical instruments, gloves, martial arts uniforms, cutlery, surgical goods and military uniforms badges.

The textile sector could learn how "Karigars" in Sialkot boosted their exports and are looking forward to improve. The scintillating information the report gives to readers is that exporters are conscious of their city, beautification and comfort. Let the "Khushbu" spreads beyond Sialkot!
 
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