Panic buying from leading Indian spinners fearing cotton shortage this season
On rumours that India has deferred cotton exports until its crop size is finalized. There was panic buying from leading spinners to replenish their stocks fearing shortage of cotton due to short crop this season. Cotton market witnessed brisk trading on September 20. 2016 in Pakistan, where contamination is impeding cotton yields
The expected move from the Indian government has already pushed cotton prices high in India as this strongly indicates that the crop would also be short in India this season, broker said.
Despite the fact that spinners are distributed over government’s indifference to their issues, they continue to meet their cotton demand in order to keep the industry’s wheels moving.
Due to short crop last year spinners imported around 2.8 million cotton bales from India. The crop is expected to be short this season, too, due to less area coming under cotton sowing.
Meanwhile, reports coming from interior of Sindh suggested that some cotton growing belts are under pink bollworm after recent rains. There was urgent need that the government should arrange pesticide spray on a war footing. Similarly, many cotton growing areas in central Punjab are facing the attack of white fly.
Last year the cotton crop was extensively damaged by pest attack and there was no proper arrangement from the government.
The arrivals of phutti (seed cotton), particularly in Punjab, have improved a lot and around 50000 to 6000 bales are reaching ginneries per day. In the coming days, phutti flow is expected to see further improvement.
Major deals on the ready counter were seen changing hands as per dealeINR: 2600 bales from Sanghar done at INR 5950 to INR 6000, 2000 bales Sahadadpur done at INR 6000, 1400 bales Hyderabad done at INR 6000, 3000 bales from Tando Adam done at INR 6050, 1600 bales Nawabshah done at INR 6050 to INR 6100, 2000 bales Rohri done at INR 6100, 1000 bales Hasilpur done at INR 6100 to INR 6200, 1200 bales Burewala done at INR 6200, 800 bales Tonsa Sharif done at INR 6200, 1,400 bales Vehari done at INR 6200 to INR6250 and 600 bales Rahimyar Khan done at INR6250.
The Karachi Cotton Association raised its spot rate by Pakistan Rupee 50 to Pakistan Rupee 6000 a maund (around 37 kilograms).
Pakistani cotton yields decreasing at high rate due to contamination
Pakistani cotton, the most important cash crop and a major source of foreign exchange earnings which also provides livelihood to millions of people in Pakistan, Due to contamination its production is decreasing at higher rate and one of the critical issues for spinners to maintain first grade yarn quality.
Agriculture Information Assistant Director Naveed Asmat Kahloon said that Pakistani raw cotton is being traded at low cost due to lack of quality-based pricing system and non-practicing of the cotton standardization system. In Pakistan, the contamination proportion is 20 grams per bale, while the international market standard is only 2.5 grams per bale.
Kahloon said that Pakistan’s cotton has large impurity content with high level of foreign matter, trash water contents and is considered poor as per international standards.
These impurities have been reducing beneficial effect of improved cultivators and impairing not only the quality of raw cotton itself but also effect the subsequent processes of the textile products.
Contamination produces low quality lint cotton, yarn and manufactured goods. Generally, the quality of cotton is determined by its colour, fibre length, strength and finesse. Thus among others, one of the important factors which makes the quality of raw cotton low, is contamination.
A number of impurities like pieces of leaves, immature and empty bolls, stems, flowers, sticks and weeds, trash and dust, mix with cotton due to carelessness of pickers.
He said that it is advisable to avoid contamination, picking should be started at the time when 50 percent fully matured bolls are opened. Lady pickers may be pursued to cover their heads to reduce the possibility of contamination of human hairs.
APTMA estimated over USD 1.4 billion loss due to cotton quality whereas National Textile University in a study estimated over USD 4 billion loss because of cotton contamination.