Prices of cotton likely to decrease in winter

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RAHIM YAR KHAN (By Bilal Habib) Unfavorable weather conditions affected the quality of cotton crop but its rates has been increased from Rs 400 to 700 per 40 kg during last couple of weeks due to less crop.
According to a trader of RYK Model Grain Market Haji Maqbool the season of Phutti (Cotton) wasted in the start of September and then its rate was Rs 3400 per maund. Steadily its rate increased which was Rs 4200 per maund.
He said that although the cotton yield was affected due to hot weather and pest attack, but the sowing of cotton has increased this year and its arrival at grain market is increasing.The
second reason of its increasing arrival was that the rates of sugarcane has annoyed the farmers during last few years and they had switched to cotton sowing.

He told that almost 6000 maunds phutti was arriving in grain market daily. It could be fast but many ginners buy cotton directly from farmers Rs 200 less than grain market rate,he
added. He said that    Former chairman Pakistan Cotton Ginners Association (PCGA) Haji Ibrahim  told that during last two months due to extreme hot weather the severe attack of Army Bollworm affected the yield.He said that almost 20 pc of the yield destroyed due to this attack.
Later during current month heavy rains in different areas of Punjab and Sindh also damaged the cotton crop. He further told that in the start of cotton season the farmers were very depressed because the rate of phutti was Rs 3400 per 40 kg. But later in September due to low arrival of phutti in the grain market, the demand by ginners enhanced which increased the phutti rate. Now its rate in the grain market is Rs 3700 to 4000 per 40 kg which had benefited the farmer.
Last year there were total production was 11.7 million cotton bales in the country and this year it could be reached at 10 million bales, he added.
Former president RYK Chamber of Commerce and Industry and a prominent ginner Sheikh Emmad Uddin told that till September 15 the figures of total produced cotton bales show that it was 800000 less than last year’s figure. He said that the unfavorable weather conditions damaged the quality of phutti.

He told that the purchasing of phutti was low because the textile mills were facing the issue of liquidity by imposing the sales tax.He said that in the month of August the rate of phutti was Rs 3400 to 3600 per maund. But recently the rate of phutti has increased up to Rs 3800 to 4100 per maund because of slow arrival of phutti due to less yield and quality.
The rate would increase up to Rs 4400 but it depends upon weather conditions. He further told that internationally the prices of cotton were depressed because there is a trade war between China and USA.
He told that the textile mills were purchasing the cotton in hurry because their need is high now a days.

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