Cotton

Cotton lint collapses on re-selling
3 Jul 2008 1:08 pm

Mumbai - Cotton lint prices tumbled sharply by Rs 600-Rs 1,000/candy as exporters resorted to heavy re-selling in the market Thursday. Sentiments have also been worsened on rumours that the government was considering banning cotton exports from the country, market participants say. Moreover, traders are shying away from spot deals due to the ongoing nation-wide strike of transporters.

Traders say, the sharp overnight decline in cotton due to fund selling in the international market also had its adverse effect on the domestic market.

Meanwhile, the report on sowing of cotton is expected to be released soon. And since rainfall has been good so far in cotton-growing areas, the report is more likely to show some good figures. Therefore, stockists are looking to clear their stocks, market participants add.

Spot rate lower by Rs 50 on cotton market

KARACHI (July 04 2008): Sharp arrival of phutti pushed the prices lower on the cotton market on Thursday, dealers said. The Karachi Cotton Association (KCA) official spot rate was down by Rs 50 to Rs 3,650, dealers said. Phutti prices in Punjab were at Rs 1,550-1,600 and in Sindh prices were at Rs 1,650-1,700, dealers said. Cottonseed was at Rs 675, they added.

According to the market sources, phutti arrival was strong and quality is also good, but one disappointing factor appeared that the number of buyers are not increasing after the imposition of gas taxes. Taxes on gas and cost of productions are also hurting textile sector, they said. According to some reports, textile industry, its biggest source of exports and manufacturing employer, may collapse due to surging fuel prices and chronic power cuts.

Textiles accounts for about 70 percent of country's exports and the sector contributed 8.5 percent to gross domestic product in the first eight months of the 2007/08 fiscal year to February. On Wednesday, cotton futures extended a losing streak to end at a fresh three-week low and analysts are looking for signs the market may hold its lows and possibly stabilise over the coming sessions.

Some mills were also on the sidelines and hoping for further decline in the prices, brokers said. The key December cotton contract fell 1.04 cents to finish at 75.29 cents per lb, dealing from 74.97 to 77.12 cents. Based on the third position closing charts, it was the lowest close for cotton since June 10.

Spot July cotton eased 0.66 cent to close at 68.12 cents. Volume traded in the December contract stood at 10,955 lots at 2:37 pm EDT (1837 GMT). The following deals reported as some 497 bales of cotton from Khanpur Mehar sold at Rs 3,725, 200 bales from Haroonabad at Rs 3,700, same figure from Chichawatni at Rs 3675 and 1000 bales of cotton from new crop sold at Rs 3,600 for 8th July delivery, dealers said.

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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 3650.00 50 3700.00
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Equivalent
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40 Kgs 3912.00 50 3962.00
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New York cotton futures settle shade up
NEW YORK (July 04 2008): Cotton futures finished slightly firmer Thursday, after late trade and consumer buying erased losses before a holiday break, but the weak tone of fibre contracts may spill over into next week, brokers said. The market will be shut Friday for the US Independence Day holiday. Trading resumes on Monday.

The key December contract rose 0.06 cent to finish at 75.35 cents per lb, dealing from 74.26 to 76.13 cents. Volume traded in December was 8,881 lots at 2:35 pm EDT (1835 GMT). "Technically, the market looks weak," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia. He said fiber contracts, basis the benchmark December contract, have tumbled sharply since ending above 81 cents late last month.

"After four consecutive down days taking prices 727 points below Monday's highs, the market was ripe for a bounce," said Mike Stevens, analyst for brokers SFS Futures in Mandeville, Louisiana. With the market again trading so poorly, Brown believes December may decline further after the holiday break. For the moment, traders said, the market managed to hold the bottom of the downside target at 74 cents, after some trade and possibly mill buying came in.

Traders said some pressure in cotton was also felt from news the International Cotton Advisory Committee forecast world demand would fall to 26.6 million tonnes in 2008/09 from 26.75 million in 2007/08. ICAC said this was due "to projected slower global economic expansion and higher prices of cotton relative to polyester." Brokers Flanagan Trading Corp sees support in the December contract at 75.25 and 74.40 cents, with resistance at 76 and 76.85 cents. Volume traded Wednesday hit 14,875 lots, exchange data showed. Open interest in the cotton market fell 728 lots to 216,862 lots as of July 2, exchange data showed.

New York cotton futures decline
NEW YORK (July 04 2008): Cotton futures were pounded by investment fund sales to finish Tuesday at a three-week low, but consumer buying may come in and blunt fibre contract losses this week, brokers said. The key December cotton contract fell 2.29 cents to finish at 76.33 cents per lb, dealing from 75.53 to 79 cents. Based on the third position closing charts, it was the lowest close for cotton since June 10.

Spot July cotton slid 2.62 cents to close at 68.78 cents. Volume traded in the December contract stood at 20,319 lots at 2:41 pm EDT (1841 GMT). Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia, said that based on the way the market wound up, fibre contracts may lean lower but that mill buying may show up overnight and stabilise the market.

Johnson added that automatic programmed orders at the end of and the beginning of a month likely added to the pressure felt by cotton contracts. Fundamentally, the market has already digested the US Agriculture Department's annual planted acreage report on Monday. USDA showed US 2008 cotton plantings at 9.246 million acres, down from 9.39 million it estimated in March and trade belief it would range from 8.45 and 9.2 million acres.

Johnson and other analysts said there were also lingering jitters over the impact ever-escalating crude prices will have on world cotton consumption. Analysts are now content to monitor cotton growing conditions in the US cotton belt. Most market sources said the actual amount planted to cotton by US farmers is much lower than the USDA estimate.

They said Texas, the top growing state where half of all American cotton is sown this year, may see more losses after howling wind, heat and dry conditions stressed the plants in the area. Investment fund sales kept market under pressure throughout the session, traders said.

Brokers Flanagan Trading Corp sees support in the December contract at 76 cents, with resistance at 76.85 and 77.60 cents. Volume traded Monday hit 15,543 lots, exchange data showed. Open interest in the cotton market fell 453 lots to 215,451 lots as of June 30, exchange data showed.

Cotton lint steady in north India
4 Jul 2008 5:01 pm

Abohar - Cotton lint prices remained steady at major markets across north India Friday.

Meanwhile, Joint Secretary to the Textile Ministry J N Singh said that the government was not considering imposition of ban on cotton export, but import duty might be cut to increase supplies.

Across Punjab, cotton lint traded at Rs 2,850-Rs 2,880/maund at Fazilka, Kotakpura, Muktasar and Bathinda; Rs 2,850-Rs 2,880/maund at Malot and Gidarbha; Rs 2,850-Rs 2,880/maund at Abohar; Rs 2,850-Rs 2,880/maund at Manasa; and at Rs 2,850-Rs 2,880/maund at Rampura, Barnala and Budhaldha.

Cotton lint traded at Rs 2,850-Rs 2,875/maund in Haryana and at Rs 2,650-Rs 2,735/maund in Rajasthan.
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Cotton lint stable in west India
4 Jul 2008 5:04 pm

Mumbai - Cotton lint prices remained at major markets across western India Friday.

Joint Secretary to the Textile Ministry J N Singh said that the government was not considering imposition of ban on cotton export, but import duty might be cut to increase supplies.

Meanwhile, the report on sowing of cotton is expected to be released soon. And since rainfall has been good so far in cotton-growing areas, the report is more likely to show some good figures. Therefore, stockists are looking to clear their stocks, market participants add.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 27,300-Rs 27,600/candy while average-grade traded at Rs 26,400-Rs 26,800/candy.

At Sendhwa market in Madhya Pradesh, the 28-mm cotton lint traded at Rs 27,500-Rs 27,800/candy; 29-mm cotton lint traded at Rs 28,000-Rs 28,500/candy; and 30 mm cotton lint at Rs 29,000/candy

US cotton weekly export sales highlights
WASHINGTON (July 05 2008): USDA cotton export sales highlights for latest reporting week: Net Upland sales of 42,500 running bales were two and one-fifth times the previous week, but down 84 percent from the prior 4-week average.

Increases reported for South Korea (16,400 RB), Thailand (10,800 RB), Colombia (4,100 RB), and Turkey (4,000 RB), were partially offset by decreases for Hong Kong (2,200 RB). Net sales of 65,900 MT for delivery in 2008/09 were primarily for Mexico (27,800 RB), Indonesia (21,600 RB), and South Korea (13,600 RB).

Exports of 378,500 RB-a marketing-year high-were up 34 percent from the previous week and 36 percent from the prior 4-week average The primary destinations were China (170,000 RB), Indonesia (32,900 RB), Turkey (29,900 RB), Mexico (26,900 RB), and Peru (16,700 RB).

Net American Pima sales reductions of 11,000 RB resulted as increases for India (600 RB) and Japan (500 RB), were more than offset by decreases for Indonesia (12,100 RB) Exports of 6,300 RB were mainly to India (3,000 RB), Pakistan (1,000 RB), Bangladesh (600 RB), and Japan (600 RB).

New York Close (vs. previous week)
Jly08 67.51 -620 Mch09 80.77 -604
Oct08 72.20 -591 May09 82.43 -595 4
Dec08 75.35 -605 Jly09 83.63 -593
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Cotlook A Index (FE)
2007/08 76.85 -3.55
2008/09 80.80 -4.10
U.S. Exports Net Sales
Accumulative 14,942,900
Weekly 31,600
South Korea 16,400
Thailand 10,800
Colombia 4,100
Wkly Shipments 384,800
NYK Open Interest
216,862 +130
Net Speculators’ Position
Long 7.2% +2.7%
NYK Certificated Stocks
1,675,404 +30,553
Awaiting review 36,922

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U.S. Crop and Planted Acreage – Overall crop condition continues to
decline for the good-to-excellent by 2% this week to 45%, compared to last
year at 54%; whereas, the percent squaring (at 47%) and setting of bolls
(10%) advanced nicely. USDA’s acreage estimate was close to its March
Prospective Plantings, down 143,600 acres. With the reduction of 1.6 million
from last season, preceded by the 4.4 in 2007/08, the estimate represents a
decline of over 39% in just two years. Our in house crop estimate is around
14.0 million bales. It was established by applying a 5-year average after
dropping the high and low figures for both abandonment and yields by state,
except for Texas where abandonment was set at 700,000 acres. Below is a
comparison to the March estimate and final figures for the last two years:
(in million acres) June 30, 2008 March 31, 2008 % Change 2007/08 2006/07
Southeast 1.867 2.022 -7.3 2.255 3.353
Delta 1.960 1.960 -6.2 2.750 4.235
Southwest 4.935 4.935 -12.0 5.122 6.835
West .282 .269 - 0.5 .408 .525
Total Upland 9.044 9.186 -9.2 10.535 14.948
Pima .202 .204 +2.1 .292 .326
Total 9.246 9.390 -9.0 10.827 15.274

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Zimbabwe – Harvesting, at 60-70% complete, is continuing under favorable weather. The earlier
estimates have been reduced from 145,000 tons of lint to about 125,000. Due to the lack of liquidity and
a high inflation rate, the flow of seed-cotton from farmer to the ginner is very slow. There are also internal
logistic problems, such as the lack of fuel to transport seed-cotton from the collection centers to the
ginneries. Another problem for exporters is the wide difference between converting foreign exchange into
local currency, which is mainly determining the seed-cotton price to the producers.


Zambia – Ginning has just started and is at least 3-4 weeks behind normal. At the beginning of the
harvest, the farmers were reluctant to deliver seed-cotton, but since ginners have raised their initial
prices, the flow has increased. However, due to the strong Kwacha, ginners cannot improve their prices
any further. Another ginner concern is the crop size, with estimates between 30,000-45,000 tons of lint.
It has to be recognized that each ginner has his own way of providing inputs and credit to the farmers.

Tanzania – Since the official buying-season started on June 16, the farmers have sold only small
quantities to the ginners. As in the past, farmers are hoping ginners will increase their offering price of
Tsh 400.00/kg per lb. for seed-cotton (35 cents/kg). Last year, the ginners started with prices at Tsh
350/kg and paid up to 500/kg by the end of the season. Due to the heavy losses of last year and an
expected crop of 110,000-120,000 tons of lint compared to 65,000 last season, ginners are not willing to
increase the price. Fewer buyers have applied for buying-licenses, as the local banks are stricter in
granting credit lines to buy seed-cotton. Some sales have been concluded since the beginning of the
season and together with the earlier sales, it is expected that the majority of the crop is still unsold.
Logistics in East Africa – There are also huge problems in the ports. Most of them are heavily
congested and, as a result, the shipping lines have reduced their frequencies. In Dar-es-Salaam, which
is probably the most problematic port, they are trying to improve the situation by establishing small
bonded container terminals outside of the port area. The situation has a great impact on the availability
of empty containers and space on the vessels sailing from Mombasa, Dar-es-Salaam and Durban.

Higher dollar rates propel exporters to buy phutti

KARACHI (July 06 2008): Trading activity showed further improvement as higher dollar rate diverted the exporters to buy phutti on the cotton market on Saturday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650, dealers said.

Phutti prices in Punjab were Rs 1600-1650 and in Sindh was at Rs 1700, they said. Since the phutti arrivals started, the prices were on the downside but exporters' entry into the market stabilised rates, they said. Besides, hovering speculations about the Indian ban on cotton exports may also help in bring more stability in the prices, they said.

To meet the local demand, cotton import may be banned but it is very likely that Indian government may turn down this demand by the concerned circle, Naseem Usman said.

Explaining the prevailing trend in these days, leading analysts Naseem Usman said that price of phutti declined sharply from Rs 2200 to Rs 1600 in Punjab during last few days.

He also said that it is another factor that phutti supply will increase further in next few weeks, which could be a reason behind the destabilising trend in the prices. Pace of arrivals indicating that the production figure may improve from the last year's, they said.

The New York cotton market was closed on Friday for the US Independence Day holiday. Trading resumes on Monday. The following deals reported: some 200 bales of cotton from Sanghar sold at Rs 3750, same figure from Chichawatni at Rs 3700, same number of bales from Burewala at the same prices, same figure from Dipalpur at the same rate, 400 bales from Arifwala ad Rs 3690-3700 and 1200 form Sahiwal at Rs 3700, 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 3,650.00 50 3,700.00
Equivalent-------------------------------------------------
40 Kgs 3,912.00 50 3,962.00
===========================================================

No plans to cut import duty, ban cotton exports: Pillai

New Delhi, July 06: Government is not planning to slash import duty on cotton or ban its exports as demanded by the textile industry for boosting supplies and easing prices in the domestic market.

"At the moment, there is no plan to cut the import duty on cotton," Commerce Secretary Gopal Pillai said.

At present, there is a 10 percent customs duty and four percent import tax on cotton.

He also ruled out any plans to ban cotton exports as being demanded by textile mills since cotton prices in the global market were ruling lower than those in the country.

There is no point in banning exports at a time when the international prices are lower than the domestic prices, he said.

The domestic cotton textiles industry has been demanding duty-free import of cotton to boost supplies and bring down prices that have increased by over 35 percent in the last one year across varieties.

While the prices of Punjab cotton have shot up by 60 percent, those of Gujarat variety increased by about 50-55 percent.

According to the confederation of Indian textile industries, India has exported about 85 lakh bales of cotton, which can go up to 100 lakh bales in the next 3-4 months.

Pillai added that the commerce ministry is holding discussions with the textile ministry to work out plans to help the labour-intensive sector.

The textile industry, one of the worst hit by the over 13 percent Rupee appreciation last year as well as rising input costs, has witnessed 3.5 lakh job losses this year.

"Textiles is a cause of worry. We are now trying to see what we can do," Pillai said.

Cotton crop under threat

MULTAN (July 07 2008): Different crops especially cotton is under threat due to unfavourable weather conditions, which led to increase in different pests' attacks on the crop. On the other hand, agriculture experts are advising against pesticides spray on the crops in the prevailing conditions.

According to the sources, the rising temperature has badly affected the cotton crops due to impacted for the last couple of weeks.

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Phutti prices after volatile start at Rs 2200 but settle at Rs 1600-1650, spot rate at 3650

KARACHI (July 07 2008): The much awaited monsoons splashes have touched part of cotton belt in Punjab as initially their impact on crop was not taken seriously but hurdle in the way to seedcotton supply was apprehended during the week ended on July 5, 2008. The spot rate was curtailed to Rs 3650, while rates in ready ruled between Rs 3690 and Rs 3900 plus.

WORLD SCENARIO:

The both ways movement was hallmark of the week, as modest sales and lifting could hardly lead to something convincing in view of the other commodities values report and cotton planting expected bearish as ever in recent past but final sowing report will make shape of things clearer.

The opening day's contract value was key December dropped sharply by 2.78 cents to 78.62 and July gave away 2.01 cents to 71.40 cents a pound. However, the Monday session saw some investors who had bought earlier decided to unload pulling thus contracts down. The wait for planting report ended as USDA once again showed nearly same figure at 9.246 million acres sowing down from 9.39 million estimated in March, however trade put acreage between 8.45 to 9.25 million acres.

On Tuesday decline continued owing to investment fund sales despite the ground reality that development beyond cotton exchange could have given a different colour. However, the players spoke of optimism that coming weeks looked set for a rebound in contracts. Meanwhile planting report had no impact on the growers and traders, as figures were not unexpected to them. The crude oil prices are likely to behave adroitly. How the crop particularly develops mattered to relevant people.

On Wednesday trend sustained, while players looked for ways that will end the losing streak. They expected better outlook will develop before long, brokers said they are hoping to get some direction from weekly export sales. Meanwhile support in Key December was seen at 75.25 and 74.40 cents a pound.

On Thursday cotton futures finished slightly firmer after late trade and consumer buying erased losses before a holiday break, but the weak tone of fibre contracts may spill over into next week, brokers said.

The market will be shut on Friday for the US Independence Day holiday. Trading resumes on Monday. The key December contract rose 0.06 cent to finish at 75.35 cents per lb, dealing from 74.26 to 76.13 cents. Volume traded in December was 8,881 lots at 2:35 pm EDT (1835 GMT).

LOCAL TRADING:

Rise in prices is world-wide phenomenon and cotton is exception nowhere. In Pakistan cotton has no meaning a recent innovative R&D subsidy is key to textile exports. Therefore there is open competition between the sellers and buyers of cotton-latter is also at loggers head for the above mentioned fact and several others will in due course.

Despite the fact that spot rate scaled into the week without any addition, The seedcotton arrival had begun. Rains too have, but perception regarding depend on the sellers and buyers who stand apart. Rains in the eyes of sellers are a boon, as they hinder seedcotton supplies, but buyers inevitably consider a windfall, because production rise is expected. Phutti rate obviously turned lower to, in Punjab, Rs 1600 while, surprisingly better in Sindh at Rs 1700 per 40 Kgs. Despite reservations about price two small lot deals were noted on Monday around Rs 3800/3900 plus.

The spot rate cut was most appealing as sellers had accepted the expeditions seedcotton supplies-no matter received setback due to rains. The spot slashed by Rs 50 to Rs 3700. The usual cheap cotton has not drawn the buyers as they always had some or the other problem, which related to government. The situation on ground seems to have been coaxing sellers; the result may cut some more prices.

On Wednesday expeditions seedcotton supplies put pressure on prices. The couple of deals were down at Rs 3700 and spot rate too was same.

On Thursday sharp arrival of phutti pushed the prices lower on the cotton market. The Karachi Cotton Association (KCA) official spot rate was down by Rs 50 to Rs 3650. Phutti prices in Punjab were at Rs 1550-1600 and in Sindh at Rs 1,650-1,700. Cottonseed was at Rs 675.

According to the market sources phutti arrival was strong and quality is also good, but one disappointing factor appeared that the number of buyers are not increasing after the imposition of gas taxes.

Taxes on gas and cost of productions are also hurting textile sector. According to some reports, textile industry, its biggest source of exports and manufacturing employer, may collapse due to surging fuel prices and chronic power cuts.

Textiles accounts for about 70 percent of country's exports and the sector contributed 8.5 percent to gross domestic product in the first eight months of the 2007/08 fiscal year to February. The g deals reported were 497 bales of cotton from Khanpur Mehar sold at Rs 3725, 200 bales from Haroonabad at Rs 3700, same figure from Chichawatni at Rs 3675 and 1000 bales of cotton from new crop sold at Rs 3600 for 8th July delivery, dealers said.

On Friday official spot rate resisted further decline in the process thing activity on the cotton market. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650. Phutti arrival was slow, which helped in stabilising the prices.

According to the market sources, several factors appeared on the economic front, which caused fall in the prices and it is most likely that the prices may come down as a result of the more increase in oil prices on the globe and locally further taxes by the government. People related to the textile are looking in crisis after imposition of taxes on gas and electricity charges. The textile sector is hoping that the government will take further measures to save them from disaster. The deals were 400 bales of cotton from Arif Wala sold at Rs 3685-3700, 400 bales from Pakpattan at Rs 3675 and 200 more bales from Chichawatni at Rs 3700.

On Saturday activity improved as higher dollar rate diverted the exporters to buy phutti. Phutti prices in Punjab were at Rs 1600-1650 and in Sindh was at Rs 1700.Since the phutti arrivals started, the prices were on the downside but exporters' entry into the market stabilised rates. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3650. Some 2400 bales changed hands. Prices ranged between Rs3690-3750.

ROZS TURNING A REALITY:

Late - very late not because change of government but Pakistan and Pakistan's under developed part intricate areas would have possibly come out of the centuries old rot. The delay was not necessary unless the sublime idea was to force some thing substantial in return.

Friends in need is what economically weak made this country looks around for Bush who could venture in giant action could have manipulated much before to see RoZs (Reconstruction opportunity Zones) started production for free of duty access to US markets besides encouraging investors to invest in the tribal zones. The current move has been introduced in the house of Representative for creating RoZs in Pakistan.

Earlier, a similar bill was moved in the US Senate in March last. Had it not been better that Bush has welcomed the proposed legislation because it will help stabilies an otherwise volatile region. However, a brief history of Pak efforts to gain permission of Bush and administration tons of money had to be spent on travels by relevant ministers and ever president for FTA and investment but all approaches were soundly ignored. The elections were due and results had to be weighed whether they had any touch of American desire.

For all these months top officials unmindful of security advice, which had hit exports from Pakistan, were dropping like rain water. The hectic efforts ultimately yielded in Administration's. The length of time has not been hinted. Four months hence American presidential polls are due, whether change in negative was possible has been negated by saying that if Barak Obama gets elected will not oppose the construction of the Iran - Pakistan - India gas pipeline. The report has been pretty late as Pak oil minister (and foreign minister) has already hinted at the fact that all is well on IPI pipeline front. The happiness that come in a chain like RoZs and IPI pipeline leave poor people in Pakistan feeling head dizzy?

KNOWLEDGE BASED SECTOR IS A MUST:

The textile sector may have been really hard up with local plus international factor. Late the oil, but a closer look in complaints needs to be looked into problem beset businesses and exports that should be tackled by the owners, approach authorities for all possible help, that mostly constitutes of tax payers blood and sweat. Noises are not anything be heard today, it's an old practice, sources close to cotton and textile sector remind.

But the rumpus is unique and more frequent than used to be. A clout, a friend and any close relative in authority in Islamabad is no harm, but take undue advantage by any one is not fair, circles said. But national touch should always be there so that advantage reaches to as many people, as possible they said.

They said that without being aware why road development, energy development and dams and canals have remained much less than the country and people needed. Even training institutes for labour, and textile related college could be cited.

The doors of importers are knocked for inquiry whether they have such and such dyes or chemicals, but have they ever approached authorities to stress importance of textile machinery and petro-chemical plants? No, perhaps never.

Questions quite often raised in these lines have never been answered. Annually billions of dollars worth dyes from China, India and four corners of the world are imported with taking a pinch why they are victims of high cost of business. If consumers pay little heed the lament of the experts could be eliminator and cause of doing high cost of doing business could be eliminated. The way out seems to be: set up textile towns and cities per plan and pay immediate heed to knowledge based export sector to shed pressure year after year. Their genuine problem be taken a care of.

WTO DOABLE BEFORE YEAR END BUT - LAMY:

The WTO chief Pascal Lamy was never so disappointed to repeat a deal is doable but chances of any breakthrough look to be dwindling. He appeared most optimistic once when one of the most important meeting be smelt nicely flavoured food being cooked next door to the meeting place. However, he stills feel the deal was likely.

The developing countries, which are constantly being asked to concede more ground, are increasingly discouraged. Brazil, which is at odds with the US over subsidies to cotton farmers and have approached WTO body for reconciliation and government verdict in its favour, along with India, complain that agri proposals at the WTO do not open up markets enough dimming the hope of a deal this year.

Every time at certain intervals meeting is held, participants even fix date when deal was likely to be concluded. But swirling snub come face to face even to most optimistic. The time period has been consumed on rigmarolling a simple issue which in its intrinsic sense seeks to make available two square meals to centuries deprived poor and consequently flash of smiles of ever long face.

But even the closest sponsor of not only WTO, but all such world scale institutions like League of Nations and even the UN are meant to stand in times of interest seem at stake downing the wrong or right to dustbin. The way dilly-dalling is being spun is nothing. But to come to terms of influential sponsors. To be sympathetic to someone and giving in alms what pockets contained but keeping tonnes of money in banks, stocks and in the shape of agricultural land.

The WTO seeking equal opportunities for rich and poor is like tell tale to children to go to sleep. Yes, the sources said deal is doable by the end of the year or after change over of govt in US, in EU and India but the posterity will smile why such big and sensible people create games majority just look on.

HIGH COST OF BUSINESS WHO IS RESPONSIBLE?

Had it been in any way related to foreign callousness Pakistanis and possibly the world interested quarters would have made hell the so-called high cost of doing business. The textile sector showed the way and then all sectors sprang up with voice hold up due to free exports. The gasoline's jump in prices apart for which no one seemingly appear to be directly responsible. The rest of issues pointed out by the so-called victims authorities and exporters should in all fairness share the blame.

Apart from oil and government and exporters should have talked over a decade back that WTO is coming and probably Pakistan will be a member and will have to face rules and regulation, terms and conditions. But the knowledgeable sources had no hesitation in blaming more the exporters who do not change every two or three year. The bureaucrats they said have their own story of carrying a host of henchmen just out from academics. The new coalition government is out to build a happy Pakistan.

Favouring a party member but with ability is not as bad as the past practices have demonstrated. Pakistan needs investment but the dream would come true if life moves not in days, months but years from one desk to another. In democracy, which is being talked so frequently and louder than ever, favouring exporters with 50,000 bales of cotton for gains in election is deceptive, the sources scratching their heads said.

High cost of doing business and losing edge in exports may be to some extent to some unfavourable condition but how many exporters, who do not change even now and then, know the rules and regulations. And if some know they think government of the day is to do the needful, the sources reminded.

Infrastructure is a must, but some donor banks are being sought to help in bettering it. Similarly, if a foreign investor gets vexed on time frame for receiving a licence he fondly wants to set up a project?

TEXTILE SUPPORT PACKAGE:

The official sources, who have been quoted in a report headlined textile ministry seeks support package, seem to have studied closely the textile manufacturers and exporters entirety have been shocked on fresh approach. Under new set up, textile ministry has once again been given under commerce ministry patronage, in perhaps keeping with tradition.

The textile ministry in its short span of life had been able to secure, according to sources huge packages that ran up to Rs 30 billion besides R&D subsidies. The new set-up had not found packages necessary any more, had not made it part in 2008-09 budget. But the textile ministry, which has lost its independent identity has now been engaged in seeking substantial package for what officials quoted by report and inefficiently run textile and clothing industry with the fully backing of powerful research and development (R&D) mafia kept solvent on rebates and refunds.

The report said, "the support, if approved would be a complete negative of the 2008-09 budgetary proposal to extend zero subsidy for R&D support to the textile sector. The next step the new set-up takes will determine whether, according to sources textile sector will never be strong enough to stand on its feet. They suggested the government should find out ways to back businesses and exports sectors equip themselves with necessary wherewithal to contribute for the development of this poor and vulnerable country.

The leaders have always dreamt of strong and prosperous, they argued, broadly meaning that Pakistan was meant for all have and have notes. Against this they pointed out that people on top in this country only talk without delivering. The new set-up is tightening belt. All should wish it well.