Cotton

Cotton prices ease down on slow buying

KARACHI (July 28 2008): These days, it is raining in cotton areas of Punjab province while it is anticipated in cotton belts of Sindh province as clouds are hovering over the sky. Reports from Punjab indicate generally cloudy weather with sufficient to high humidity percentage which is responsible for bearing pest and diseases such as mealy bug, white fly and Redling which are damaging cotton plant and hindering its growth more than last season.

The Federal Ministry of Food, Agriculture and Livestock is yet to release its figures about the area sown to cotton. Field reports indicate that cotton sowing has already been finished and area sown to cotton may be approximately between 85 percent and 90 percent of the sowing target of 3.2 million hectares.

Initial production target of 14.10 million bales has been officially reduced to 12.6 million bales which works out to 10.64 percent short but on the basis of private estimate of 15 percent short fall of area sown, cotton production works out to 12.0 million local weight bales. If the possibility of estimated 15 percent damage to cotton by pest / diseases attack and by inclement weather is taken into account, the crop size would shrink to 10.2 million bales.

Cotton harvesting is increasing day by day in Sindh province where some 8 to 10 ginning units have resumed operation in new crop while arrivals of seed cotton are decreasing in Punjab forcing closure of ginning operation in 10 to 15 factories. As reported earlier, in Central Punjab cotton was sown in March / April months in replacement of potato crop on some 70 thousand hectares which was almost completely damaged due to pest / disease attack.

That non-seasonal crop stated maturing in June month and picking started and by the last week some 80 factories commenced ginning operation, producing some 200,000 bales and approximately producing another 100,000 bales from this non-seasonal cotton crop. The regular seasonal crop is likely to start maturing from September month and by the end of August month most of the factories will be forced to close their operation because of drastically reduced arrivals. However, some of the factories may bring up seed cotton from Lower Sindh, where regular crop is maturing, to continue their ginning operation.

Lint prices remained firm during the last week and increased to season's highest level of Rs 4,200-4,250 per maund of 37.324 kg ex-gin but retreated to Rs 4,000 level in last two working days of the week. Reportedly, local exporters and international merchants have made export sales of more than 50,000 bales of new crop mostly to India and Bangladesh and Indonesia at the level of USC 70 and 78 / lb. Press reports indicate that the Apparel Forum is demanding of banning exports of raw cotton to save the existence of value added textile sectors of Pakistan.

Some others are also making demand of banning exports of cotton to India. As a matter of fact, to meet our shortfall of raw cotton in 2007-08 season, Pakistan is reported to have imported cotton equivalent to more than 4.0 million 170-kg bales from different countries of the world of which more than 50 percent is from India. Although, we are importing millions of cotton bales every year but we also export up to 400,000 bales each year; mostly to Bangladesh, Indonesia and other Far Eastern countries.

In view of over export sales of cotton, Indian mills are deficient in cotton these days and have bought from Pakistan some 25-30 thousand bales. Why we should not export cotton to India when India is Pakistan' single largest cotton supplier in 2007-08 season. Our exports and imports of raw cotton are zero-rated and same is the position in India. For reducing our trade deficit with India, we should make more and more exports to India.

USA produced 18.355 million 480-lb bales in 2007-08 season, consuming some 4.6 million bales and making export sales of 15.559 million bales of which 12.913 million bales have already been shipped. The most prominent buyers of US cotton are: China 5.190 million bales (33 percent share), Turkey 1.976 million bales (13 percent), Mexico 1.897 (12 percent), Indonesia 1.353 (9 percent), Thailand 0.887 (6 percent), Pakistan 0.552 (4 percent), Vietnam 0.483 (3 percent), Taiwan 0.449 (3 percent), Korea Rep. 0.425 (3 percent) and Japan 0.340 million bales (2 percent). Thus top-10 countries have total share of 88 percent in the exports of US cotton. Season's average yield of lint cotton is USA is kgs 864 per hectare; with California highest at kgs 1608 per hectare. Four States have yield of more than 1000 kgs while three states below 600 kgs of the total 19 states producing cotton in USA.

In 2007-08, India produced a crop of 31.5 million 170-kg bales and exported some 8.5 million bales; 75 percent of which to China and some 18.5 percent to Pakistan and almost balance to Bangladesh. India will have the lowest end stock, which is only 4.3 million bales. In 2008-09, some cotton area has been diverted other crops mainly to rice which covers an area of 4.88 million hectares against 12.12 million hectares last year. In 2008-09, India's projection for cotton production is 34.0 million 170-kg bales and hope to use domestically some 26.5 million bales and export 5.9 million bales for export. For the last five years, Indian crop has been increasing year to year and Pakistan cotton decreasing year to year.

In the world, crude oil prices have shed from US$ 147 to 123 per barrel - the decline is over 16 percent. Oil pundit forecast further sizable decline if US-Iran relations improve further. Also prices of corn, foods-grains and soybean have receded on strength of US dollar.

Pakistan's economy is confronted with adverse world market developments and also domestic problems such as deteriorating law and order situation, power crisis, liquidity crunch, high rising commodity prices, uncertain political situation and tension on borders which are badly affecting Pakistan economic and social performance. We may face even harder time further. Local industries specially that of all textile sectors are confronting tough competition from other countries specially India, China, Bangladesh, Sri Lanka and Vietnam because of comparatively high production cost.

In the past, of course development was made but mainly in service sector while real economic growth comes from development in industries and agriculture. Our foreign trade deficit is more than our total exports in 2007-08, which is US$ 21 billions. Our foreign exchange reserves are decreasing fast. Our economy requires pumping of huge amount of foreign exchange funds to revive our economy certainly with good improvement in political and law and order situation. We have to work hard in the right direction to avoid hard days in future.

Prices leap on cotton market, lint to Rs 4250, spot rate to Rs 3925

KARACHI (July 28 2008): The lint prices leaped higher to Rs 4250, reports about pest attacks in Pak cotton areas and production in most cotton growing countries remaining hazy. The spot rate with four consecutive rise was at RS 3925 but was brought down to Rs 3900.

WORLD SCENARIO:

The New York cotton futures entered the week on softer note as investor sales in line with lower grain markets. The players wait continued for any inspirational report to give a positive direction.

On Monday the December contract lost 0.46 cent to 72.28 cents a pound. Meanwhile worries about world economy and consequent effect on textile manufacturing and cotton use lead the list of bearish cotton. The Indian weather activity is also being watched lest monsoon does not perform as it typically does, the world's second largest cotton producer and exporter may turn into an importer and that could change cotton's supplies and demand picture, experts said. The trade is already looking towards the first detailed look at the cotton harvest in the US and elsewhere in the August monthly supply/demand report from USDA.

On Tuesday substantial losses were marked in cotton futures, which market observes hoped will stay range-bound at least for the time being. Analysts said that contract seemed to run out of gas every time it hits 73 cents but then runs into commercial support around 72 cents regions. Thus they said the trading range helping small investors. Concern on tropical storm dolly and condition in China and India. Much now hinges on August monthly supply/demand report being the first detailed forecasts. Weather pundits see weather dry for the time being.

On Wednesday futures were strongly supported by trade buying and investment fund short covering leading to December gain of 1.36 cents to 72.92 cents a pound. The market players are now expected to watch if move in cotton can be sustained. Initially, analysts said strong buying and then fund short covering over ran 72 cents.

On Thursday cotton futures turned higher on investor buying and short covering, besides adverse effect on cotton crop in S Texas from hurricane Dolly, market operators said. However, they said the loss was small. The players took note of weekly export sales, which stood at 151,000 RBs (running bales) 500 lb each, while shipments stood at 258,000 RBs. The new crop sale was expected to have been sold.

On Friday follow through investment fund buying and observers predicted the rising streak was likely to spill over into next week, an element that players welcome. They quoted news that cotton prices could surge to a 14-year top next spring. They said cotton prices may rally 30 to 40 cents. However December settled up 0.64 cent to 74.50 cents a pound on the last trading day of the week.

LOCAL TRADING:

The trading reported tight right from the beginning of the week, as prices of lint turned firmer owing to primarily surge sustaining in oil prices, seedcotton supply turning short and sellers holding back remaining stocks in hope for better return.

The very first days trading saw spot rate rising by Rs 50 to Rs 3750/ seedcotton prices too rose to Rs 1950- Rs 2000 in Punjab, while in Sindh it was changing hand in Rs 1950 and Rs 1975. Around 3000 bales were bought by most needy keeping an eye on prospect during next few months. The oil prices are keeping firm world-wide and that neutralises the fear of snatching edge. The rates ruled between Rs 3990 and Rs 4000 per maund. On Tuesday sustained rise lopped to Rs 100 in the spot rate, after it had hit Rs 50 a day before. The amusing thing seen was rise in purchases, though small, around 5000 bales.

Consumers perhaps knew what they are doing, under compulsion, certainly. The ginners perception has started paying them dividends. The phutti prices achieved new heights in Punjab at Rs 2000/2100 and in Sindh at Rs 1950 and Rs 2000 per 40 kg. In ready buying cotton was seen doing generally at Rs 4100, highest thus far. The expected attack of pests have prompted all to lift as after attacks substandard quality cotton will be available or will not be on sale any more. In this case import remain the only way out, which will be still higher than at prices cotton is available now.

On Wednesday there was no respite in price surge, and, a strange spectacle to observe spontaneous return of cotton consumers without grudging cotton at Rs 4200 the highest so far, hauling around 10,000 bales spot by Rs 25 to RS 3875. The rush buying was seen for yarn making, which according to market sources was ensuring good return.

On Thursday in ready off take price hit another peak at Rs 4250 per maund. The consumers expressed fear about shortfall in production and imports were not to be any cheaper for similar reason. Spot rate rose by another Rs 50 to reach 3925. As is usually with the psychology of the buyers, laid hands on nearly 8000 bales around Rs 4200 per maund. Phutti peaked at Rs 2025 to Rs 2150 in Punjab and Rs 2000/Rs 2050 in Sindh.

On Friday cotton in local markets dived down as some thought rise was more unnatural rather on specific calculations. The spot rate indicative of value dipped by Rs 25 to Rs 3900, phutti in Punjab came down to Rs 1975/2050, while in Sindh seen at Rs 1950/1075. Rates in ready ruled between Rs 4100 and Rs 4150, cotton changed hands around 6000 bales.

On Saturday prices remained firm in modest trading. In the ready business, phutti prices were mostly same at Rs 1975-2025 in Punjab and in Sindh rates were unchanged at Rs 1950-1975. According to the market sources, the exporters have finalised the deals of nearly 40,000 bales of cotton till now, the major part was imported by India. But there are speculations that the government may impose export duty to discourage the export.

In the meantime, the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and All Pakistan Textile Mills Association (APTMA) are opposing the export but on the other hand, ginners and exporters were in favour of the same in view of better return. The chief executive of a leading firm dealing in cotton said prices may rally to its highest level in 14 years in the 2009/10 season because the world will harvest more food crops.

Besides, influential industry analyst Cotlook also said that poor growing, weather will reduce output in major grower countries, the US, China and India, but this would not be offset by slowing demand due to global economic turmoil.

Around 3700 bales changed hands within the price range of Rs 4000-4150.

COTTON TARGET BEING SLASHED?

There is too much talk about increasing deficit and efforts to check it. Textile machinery, petrochemical plants cannot be made possibility for the last 60-year because, plausibly, investment is what nobody willingly wants to make. Even multi-nationals, who rule the world, because of petro-chemical industries and plastic plants import secondary products of their mother plants.

Pakistanis read a couple of times that Pakistan is contemplating to set up naphtha cracker but the low voice float goes into air and melts in due course. A supplement on chemical and allied industry reached Pak industrialists and authorities on January 1, 2008, which in one place states "chemical built nations by building the economics, particularly from two ends of Asia, Japan in the East and Europe in the West. The advancement in chemical research made it possible for man to land on the moon" unfortunately it adds further "Pakistan not yet really started on the road, we are forced to imports all chemicals for most of our (textile sector) needs." This all adds to Pak exporters need causing deficit to bulge and authorities to indulge in all time elegy.

Once again, when cotton sowing probably has not ended in some place, talks are in air that the federal government is likely to slash the cotton production target by 10 percent for high input costs, substandard seeds, heavy pest attacks and water shortage. The easiest way is to slash acreage, production, as Pakistanis cannot fight odds triumphantly. Last year according to reluctant sources cotton imports cost rupees one billion. This season standard seeds will have to be imported, pesticides import and nothing can be said about water availability. Any body can be sure that at least cotton production and for that matter any crop like wheat, rice or sugarcane should meet local needs.

If authorities surrender to every small or big odds where on earth Pakistanis have men to get things right. The change of government every now and then could console for being relieved has proved a dismal achievement in ten decades. Who then will take the goal of successes to the peak the founders had dreamed of.

NO CURBS ON NATIONALS:

In the post election days friends who had restrained imports of textile products, have perhaps realised enough is enough. They have been opening up blocks they had build in the way nationals to visit to Pakistan for the sake of choosing import products especially of textile. One such example is that of UK, which announced it has not barred nationals to do the shopping in Pakistan. The textile manufacturers and exporters have been casing lustful eyes on approaching birth day of Jesus Christ generally called X'mas, when day is celebrated and gifts are exchanged. Days before buying is started and mores are spent.

The other day the US announced Senate will okay bill to sanction money to finance projects in tribal areas aimed at engaging unemployed young generation so that they don't indulge in activities against humanity. Despite some positive changes here and there situation remain worrisome.

Some officials expressing satisfaction at the measures taken by Pakistan, while leading paper reporting differently. The year 2007-08 is well known to all how badly Pakistan exports have done registering decline. The result was trade deficit budge to create a record. A country hell lot of odds and ailing, needs to make up shortfalls as early and quickly as possible. But scores of issues lie flat in the absence of priority and political will. The country as a whole has been still away from measured and big violence. The knowledgeable circles pray patience and discipline to be observed so that worse that Pakistan know in the hearts of heart stay away until coalition comes to grip before long.

PAKISTAN: AN IMPORT HOUSE:

For 60 years seems no one bothered to think for a moment courage and firm determination can turn this country into a net exporter. According to some industrialist, hurt by privatisation preferred to shift to some other country or transfer wealth for investment (joint ventures). And since then even powder luxury goods continued to be imported. Many will remember the fashion items produced by Tibet were quite welcome in most countries.

Unfortunately money for last many years streamed out from country without least thinking Pak raw material exported were paying for imports of costlier stuff made from raw materials. Even cotton was preferred to be exported despite foreign visitors who advised to add value to cotton was adroitly ignore and things have not changed to this day. The bold and people with vision and wisdom engaged in adding value felt starved of yarn, which was exported without check despite voices raised.

Those who suffered for some ones export ventures used to tell authorities yarn fetch few cents, while garment, bedwear, Knitwear, towel etc fetch forex in ten to 12 billion dollars. But indifference forth came as answer. That practice of exporting raw and semi-raw materials earning few cents a pound against liberal imports of value added goods costing 10 to 12 billion dollars. Will this coalition government take heed, the trade policy however not voiced against so much as much was required way trade deficit has surged year after years. The trade policy following budget was expected imports will strictly be restricted and manufacture of some, if not all what other industries need should locally be produced.

Trade policy has not changed years of myopic look at imports of machinery, which has been deliberately imported and ignored to produce locally. Imports, according to sources, not only enjoy that way but other ways naturally hitting hard this poor country, which has come to stay by grace of God, but to stay poor for! for some reason sources left sentence incomplete.

Mineral oil to be imported from Egypt to tackle mealy bug Pakistan will grow cotton god willing till eternity and import mineral oil? Pakistan can't produce mineral oil, textile machinery, petro-chemicals, should not somebody venture in producing all what our export industrial need as raw material.

NOW GINNERS THREAT TO GO ON STRIKE:

All know if WTO deal is struck, exports will expand. Pakistanis in that case will have to produce more. More cotton, better and dirt free cotton will have to be made available. But the preparation seems half, hearted. The way the textile sector has fared during 2007-08, lamenting all along about high cost of doing business seems unlike better performance could be expected.

The authorities have shown signs of total surrender from making available good seeds, pesticides and adequate water. A 10 percent cut has already been announced, while ginners have threatened to shut down their 1200 units Pakistan wise and a move in this respect has started with contracts inter provincial. They had been not happy with imports much before ginners had exhausted their stocks.

Over and above, according to ginners they had been faced with Rs 5 per bale cotton standardisation fee, no renewal fee on working licence, non issuance of NOC by provincial government, 10 percent with holding tax on electricity bills and increased money on withdrawal of deposited money. They particularly have hinted bureaucracy doing problems that could easily be avoided.

The 1200 owners of ginneries have given nearly a fortnight to authorities to meet their demand or they effect shut down form August,1 2008. It is for the authorities to determine whether ginners threat has some substance and need to be resolved so that cotton supplies, which seems sure to be short during the 2008-09 season are maintained as smoothly as possible.

Anybody can have a look on daily newspaper and find flaws in laws, flaws in collection and huge duty scan detected. Why in Pakistan such headlines are not at least found in few and far between. A bit of thinking will, say relevant people associated with trade and business that return to ethical values alone can wash chain of weaknesses in the governance, instead cause are traced in.

WTO TALKS AT 11TH HOUR:

The cherished longing since 2001 November that Doha round was likely to see the dawn in 2008-09 sees differently. Those who have accumulated wealth to unmanageable extent planned WTO to be an institution philanthropic in nature par excellence. But gradually they started looking at it as opportunity of vast investment par excellence and have since 2001 insisted that what the rich have announced whatever they may be, even though majority of over 150, member don't behave, is enough and now it is turn of destitute of offer liberally.

How philanthropic ingredient was in WTO could be seen as soon as a couple of countries showed signs of reaching the level of emerging developing counties, they were separated from poor counties, to confuse the entire thinking. China, India and Brazil were made emerging developed countries, BD and other were made least developed countries to show the height of philanthropy.

Today among the leading members have the opportunity to sit in Geneva and elsewhere to give WTO a concrete shape end with comments like it is still doable or as the British PM said mind fellow leaders that talks were at the "11th hour." More nest week.

Japanese mills buy Brazilian (7:03 GMT 28th Jul, 2008)
China's Keqiao Textile Index falls (5:07 GMT 28th Jul, 2008)
China Cotton Index (4:48 GMT 28th Jul, 2008)
CNCE slid further (3:34 GMT 28th Jul, 2008)
Sales slip on The Seam exchanges (21:02 GMT 25th Jul, 2008)
Late rally takes ICE cotton higher (19:21 GMT 25th Jul, 2008)
ICE cotton futures near unchanged in light action (16:04 GMT 25th Jul, 2008)
Dolly remnants move across Texas into Southwest US (13:49 GMT 25th Jul, 2008)
India receives rain (10:38 GMT 25th Jul, 2008)
China’s ADB sets rules on cotton and grain purchasing loan (10:14 GMT 25th Jul, 2008)
ZCE mixed

Cotton lint bullish in north India
28 Jul 2008 3:50 pm

Abohar - Cotton lint was trading to a bullish trend at major markets across north India Monday. The estimates of sharp decline in production have boosted the market sentiments.

Sowing of cotton has reduced in northern part of the country while that in Gujarat, Maharashtra and Andhra Pradesh is lagging considerably. Therefore traders are expecting sharp decline in the production.

In Punjab, cotton lint traded at Rs 2,920/maund at Budhaldha, Taapa and Rampura; Rs 2,910-Rs 2,915/maund at Malot and Bathinda; Rs 2,900-Rs 2,905/maund at Abohar; and Rs 2,895/maund at Manasa.

Cotton lint traded at Rs 2,800-Rs 2,870/maund in Haryana and at Rs 2,770-Rs 2,830/maund in Rajasthan.

Cotton lint steady in west India
28 Jul 2008 5:59 pm

Mumbai - Cotton lint was quoted steady-to-higher at the spot market across western India Thursday despite the most-awaited rainfall in many parts of Maharashtra, Madhya Pradesh and Gujarat. Sentiment for cotton is bullish after the overnight gains in the international markets. Besides, prices are gaining on reports that sowing of cotton till July 25 has been lower compared to last year.

The Met Department has predicted rainfall central, western and southern India in the next five days. Sowing of cotton in these regions has not completed yet and the rains may help resume the process.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,000-Rs 28,500/candy while average-grade traded at Rs 27,600-Rs 28,000/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 28,000-Rs 28,600/candy; 29MM cotton lint traded at Rs 28,600-Rs 28,900/candy; while 30+MM cotton lint traded at Rs 29,100-Rs 29,300/candy; and 31+MM cotton lint traded at Rs 29,400-Rs 29,800/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 28,000-Rs 28,400/candy; 29/30MM cotton lint traded at Rs 28,500-Rs 29,900/candy; and 31MM cotton lint at Rs 29,100-Rs 29,500/candy; and DCH variety traded at RS 32,000-Rs 34,000/candy.

Government to earn Rs 1 billion from export of cotton bales

ISLAMABAD (July 29 2008): Pakistan has decided to export 50,000 short staple cotton bales in 2008-09 that would add Rs 1 billion to the exchequer, sources told Business Recorder, here on Monday. Sources disclosed that out of 50,000 bales, India would get 30,000 bales while the rest 20,000 bales would be exported to Bangladesh and Indonesia.

"About 10,000 bales have already been exported to India," sources added. "In 2007-08, we exported 0.280 million bales of short staple cotton while imported 4.5 million long staple and extra-long staple cotton," sources maintained. With the decision of cotton export, its prices in the domestic market are getting higher by each passing day and the textile sector, already under the burden of higher cost of production, is strongly opposing the export decision of the government.

"We are already tackling the issue of high cost of production. Rapidly rising electricity and gas tariffs have also made the textile sector uncompetitive in the international market," a textile mill owner, requesting anonymity, told this scribe. He said the cotton prices were Rs 3100 per maund just a week ago but with the export decision; these have become skyrocketing at Rs 4100-4200 per maund.

"The government had promised to reduce the gas tariff rates from 68 to 31 percent for captive power plants but the SRO in this regard has still not been issued," he complained.

The situation may create shortage of cotton in the local market because of less production in 2007-08 ie, 11.6 million bales. "It has already been estimated that the country may face 20-25 percent shortfall in cotton production in 2008-09. Because of fear of mealy bug and Cotton Leaf Curl Virus (CLCV) attacks, growers have sown less cotton than the last year.

Ginners threaten to go on indefinite strike

KARACHI (July 29 2008): Cotton ginning factories have announced to go on strike for an indefinite period from Friday, as the ministry of textile has linked the renewal of license to payment of research cess. The decision was taken in the emergency general body meeting of Pakistan Cotton Ginners Association's (PCGA) held at Multan on Monday. Choudhry Muhammad Akram chairman PCGA presided over the meeting.

"The agricultural departments of Punjab and Sindh have refused to renew the working licenses of ginners without paying research cess and department of excise has been nominated for recovery," said Chaudhry Muhammad Akram talking to Business Recorder over the phone from Multan. He said that two years back the federal government imposed Rs 5 per bales research cess on the ginners, however ginners refused to pay side tax due to operational losses.

He said at present ministry of textile has strictly instructed to the agricultural departments not to renew the working license of ginning factories without non objection certificate (NOC) from excise department. Therefore, the agricultural departments of the provinces have refused renewal applications and forcing for payment of last two years' cess to the excise department, chairman said.

"We are not in a position to pay Rs 5 cess of last two years, therefore we have decided to go on strike for an indefinite period from August 1, as our working licenses have expired on July 30," he added. He said that only few of ginners are paying research cess, who have gained some extra benefits from the government under clean cotton programme.

"At present, over 122 ginning factories have started operation across the country, while in the peak season over 600 factories would resume working," he added. The operational factories would close down their operation from next Friday and would not purchase the phutti from the growers, he said.

Centre may limit cotton exports
29 Jul 2008 4:12 pm

– Looking at the shortage of cotton in the country after heavy exports, the Central government may impose limit on cotton exports from the next season.

Sources said, the government has proposed to allow export of 80 lakh bales of cotton. The proposal was discussed in a Secretarial-level meeting and has been forwarded to the Agriculture Ministry.

To control the exports, the government has already made registration of all kind of cotton export compulsory a few days back.

Cotton lint steady in north India
29 Jul 2008 4:38 pm

Abohar – After surging for last few days, cotton lint traded steady at major markets across north India Tuesday. The market is concerned over estimates of lower production, but the reports of limit of exports have stalled the prices.

Looking at the shortage of cotton in the country after heavy exports, the Central government may impose limit on cotton exports from the next season. Sources said, the government has proposed to allow export of 80 lakh bales of cotton. The proposal was discussed in a Secretarial-level meeting and has been forwarded to the Agriculture Ministry.

In Punjab, cotton lint traded at Rs 2,920/maund at Budhaldha, Taapa and Rampura; Rs 2,910-Rs 2,915/maund at Malot and Bathinda; Rs 2,900-Rs 2,905/maund at Abohar; and Rs 2,895/maund at Manasa.
Cotton lint traded at Rs 2,800-Rs 2,870/maund in Haryana and at Rs 2,770-Rs 2,830/maund in Rajasthan.

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Cotton lint unchanged in west India
29 Jul 2008 5:33 pm

Mumbai - Cotton lint was quoted stable at the spot market across western India Tuesday. The market is concerned over estimates of lower production, but the reports of limit of exports have stalled the prices.

Looking at the shortage of cotton in the country after heavy exports, the Central government may impose limit on cotton exports from the next season. Sources said, the government has proposed to allow export of 80 lakh bales of cotton. The proposal was discussed in a Secretarial-level meeting and has been forwarded to the Agriculture Ministry.

At Kadi market in Gujarat, cotton lint S-6 A-grade was quoted at Rs 28,300-Rs 28,500/candy while average-grade traded at Rs 27,700-Rs 27,900/candy.

In Maharashtra, the 28MM cotton lint traded at Rs 28,000-Rs 28,500/candy; 29MM cotton lint traded at Rs 28,600-Rs 28,900/candy; while 30+MM cotton lint traded at Rs 29,000-Rs 29,300/candy; and 31+MM cotton lint traded at Rs 29,400-Rs 29,800/candy.

At Sendhwa market in Madhya Pradesh, the 28MM cotton lint traded at Rs 28,000-Rs 28,400/candy; 29/30MM cotton lint traded at Rs 28,500-Rs 29,900/candy; and 31MM cotton lint at Rs 29,100-Rs 29,500/candy; and DCH variety traded at Rs 32,000-Rs 34,000/candy.

First-ever price peak seen in cotton business history

KARACHI (July 30 2008): The first-ever peak was seen in the history of cotton business as supply was tight during the strong demand by the mills, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3,900, they said. In the ready business, phutti prices gained Rs 25 to Rs 2050-2100 in Punjab and in Sindh prices were down by Rs 25 to Rs 1975-2000, they added.

Approximately, prices of 200 bales from Pakpattan touched the historical level at Rs 4300 due to heightened demand by the spinners. According to the market sources, cotton prices hit the new high due to short supply position and following the fear of rise in shortage in the near future. It is expected that short supply position may cause further rise in the cotton rates, they said.

In the meantime, the Pakistan Cotton Ginners Association (PCGA) is going on strike from Wednesday against the imposition of different taxes and charges over the electricity and gas. Under the prevailing situation, the ginners and growers were trying to hold back the stuff for better return after the fresh sharp rise, they said.

On Monday, the NY cotton futures settled lower on light investor sales and the market may drift while waiting for news to provide direction to fiber contracts this week, brokers said. The key December cotton contract slipped 0.65 cent to close at 73.85 cents per lb, near the bottom of its 73.75 to 74.80 cents band.

The following deals were reported : some 200 bales of cotton from Sanghar sold at Rs 4150, 300 bales from Shadadpur at Rs 4100-4150, 600 bales from Hyderabad at Rs 4100-4200, 200 bales from Renalakhurd at 4190, 200 bales from Haroonabad at Rs 4200, 400 bales from Pir Mahal at Rs 4200, 200 bales from Arifwala 4200, 200 bales from Chichawatni at Rs 4125, 200 bales from Bhawalpur at Rs 4150, 400 bales from Pakpattan at Rs 4150, 200 bales from Hasilpur at Rs 4150, 400 bales from Chichawatni at Rs 4250 exporter to Mill for Karachi delivery, 100 bales from Sahiwal at Rs 4250, exporter to Mill for Karachi delivery, 100 bales from Burewala at Rs 4250 Exporter to Mill for Karachi deliver and 200 bales from Pakpattan at Rs 4300 exporter to mill for Karachi delivery, 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 3,900.00 50 3,950.00
Equivalent-------------------------------------------------
40 Kgs 4,180.00 50 4,230.00
================================================== =========