The cotton import from India has been detrimental to the interests of Pakistani local growers and farmers, as the shipment of Indian cotton through the road has triggered the Pakistani millers and buyers into not buying local cotton on asking rates.
The traders on Monday said that the shipment from the road-route was fast and could be a cheaper option for spinners. Although it would hurt the interest of local growers and farmers cultivating cotton in hope of having good rates of their produce, they added. A senior trader, Ghulam Rabbani said that several growing areas have already been hit by pest-attack and it might cause the supply of seed cotton into ginneries to fall down soon.
Mr Rabbani said that the purchase of quality lint is a serious question these days and as a result of the lower revised target against the actual position the textile millers have started importing the lint. This is harming to the growers and ginners, he said.
He said that growers have expressed their apprehension that the cotton crop output in cultivation areas in parts of Punjab including Multan, Khanewal and Vehari would not cross 75-80 percent of the last year s figures.
He said that according to the Pakistan Cotton Ginners Association, the government has not revised the support price of lint from Rs 2269 to approximate Rs 2400 per maund.
He said that the government has already revised the phutti support price from Rs 975 to Rs 1025 per 40 kg. He said that about 300 bales or 50 metric tones of Indian JS-34 type cotton entered Pakistan by Wagah-Lahore border by road for the first time last week, and was withheld immediately by the customs authorities due to the incompliance of the due fumigation on it.
He said that the size of the trade is on a higher stage about 100,000 bales changed hands everyday last week as millers are now buying in full swing. The rates are established and ranging between Rs.2350 to Rs.2450 per maund. The sellers are now asking with a little higher rates of Rs 2475 per maund but the buyers are not taking interesting yet to buy cotton on such higher rates.
He said the world cotton scenario is little bit different than the local cotton where in US the New York futures are sliding every day and maintaining the 49/50 cents per pound level but the physical rates are higher than the future contractual rates.
He said that China and India are in more or less in similar position where local demand is higher and rates are in state of the steadiness even new crop arrivals are on its peek but demand acceding the supplies.
