19 percent increase in 2011-12 cotton arrivals
Last Updated on Tuesday, 30 November 1999 05:00
Thursday, 19 January 2012 09:57
Weekly Updates -
Despite earlier apprehensions of low cotton production during 2011-12 cotton season in Pakistan due to damage to cotton crop in lower Sindh by heavy rains and floods, the Pakistan Cotton Ginners Association has reported a 19 percent increase in cotton arrivals in factories till 15th January, thanks to 3.173 million bales' increase in cotton production of Punjab province.
In its consolidated statement of cotton arrivals as on 15th January, PCGA said 12.82 million bales have arrived in factories against 10.76 million bales of last year (an overall increase of 2.069 million bales).
Of the total arrivals, 12.53 million bales have been pressed, 613,014 bales sold to exporters, 10.76 million bales sold to textile mills while 1.15 million bales remain unsold while 290,172 bales remain unginned in the factories, according to PCGA.The consolidated statement based on data collected with joint co-operation of PCGA, APTMA and KCA indicated that Punjab produced 3.139612 million bales more than the prevision year's figures of 7.13 million bales as on 15th January 2011.
The report indicated that there was a 30.48 percent decrease in cotton production of Sindh province this year.
Sindh managed to pick 2.51 million bales as against 3.62 million bales of 2010-11 season.There constituted a 42.13 percent decrease in cotton production of Hyderabad district, 58 percent in Mirpur Khas, 51.59 percent in Sanghar and 43.37 percent in Nawabshah district.
However, Ghotki district managed to increase cotton production by 40.82 percent and Sukkur by 17.28 percent against last year's production.Meanwhile, our correspondent from Multan adds:
Addressing a joint press conference in Multan on Wednesday PCGA chairman Amanullah Qureshi alongwith Mukhtar Ahmed Baloch Vice Chairman (north) Group head Haji Muhammad Akram, and Shehzad Ali Khan said that Crop assessment Committee should maintain its credibility and it should not play a game on the behalf of All Pakistan Textile Mills Association (Aptma) and that it should avoid to cut the throat of farmers who made Pakistan a self-sufficient in cotton and saved foreign exchange of billions of dollar.
He said that the cotton arrival to date had confirmed the claim of PCGA and contradicted the speculations of APTMA, KCA and PCAC.They said that the government should acknowledged the ground realities and it should allow Trading Corporation of Pakistan (TCP) to purchase one million bales of cotton dumped at the ginneries.
They warned that any delay in this regard would ruin farmers and they would not grow cotton and opt the alternate crops in the next season.
This would require the country to export cotton from different countries by spending more than 100 billion dollars.
They said that farmers had incurred a huge loss of Rs 24 billion in cotton trade and they would have to incur another loss of Rs 5.5 billion if the prices were not fixed in accordance with the international market trends.They claimed that prices of cotton in New York market surged to Rs 7500/maund but textile millers in Pakistan wanted to purchase cotton at maximum price of Rs 5700/maund.
They also appealed to ginners not to sell their stock at throwaway rates.
Cotton analysts predict that despite higher crop estimates, price outlook is expected to be on the higher side during the coming months, as apart from increase in mills demand private sector exporters of lint are also active on the reports of higher global rates and demand.Arrival of phutti at ginneries is said to be now normal, as prices of phutti are also showing a progressive increase.
They said that New York market showed prices at 96.87 to 97.28 cent/lb as cotton has been additionally supported by Chinese purchases, as one of the world's largest consumers.PCGA leaders alleged that Textile millers had established a cartel to fleece the cotton growers as well as ginners.
The official spot rate was lowered by Rs 100 to Rs 5,400, they said.
In the absences of foreign buyers' participation in daily business, local traders are in lethargic mood, waiting for a decision of the Economic Co-ordination Committee (ECC) meeting about the procurement rates of cotton, but its meeting could not be held due to some unavoidable reason.
Courtesy: Business Recorder