Seed cotton prices hike by Rs 150/40kg

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RAHIMYAR KHAN - Due to apprehensions of lower domestic cotton production against earlier estimates for the current year, the cotton ginners have prompted with enhanced purchasing of seed cotton.

The prices of seed cotton (phutti) have risen by Rs 100 to 150 per 40 kg in various parts of the country and touched highest price of this season Rs 3,000 per 40 kg during last two days. It is expected that prices of cotton lint will also show corresponding upward trend. The upset in cotton prices due to announcement of cotton lint imports last week will eventually be again turn to upward trend.

Pakistan Cotton Ginners Association ex-Executive Member Ihsan-ul-Haq told that after devolution of Food and Agriculture Ministry to provinces there was no official estimate available for current season national cotton production however agricultural experts, Cotton Commissioner and Provincial Agriculture Ministries initially had estimated of 15 million bales for domestic cotton production during the year 2012-13. Afterwards due to crop losses in Sindh and Punjab caused by heavy rains forced experts to lower estimates to the tune of 14.5 million bales.

Sources said that at the start of sowing season of current cotton crop, the Meteorology Department announced 35pc more rains for July/August 2012 so most of the farmers in river areas of Sindh and Punjab opted for planting paddy instead of cotton hence reports of corresponding fall in cotton production are circulating in the market.

The arrival of seed cotton (phutti) in agriculture markets and in ginning factories is lower than expected so the ginning factories have accelerated their buying activities resulting in rise of seed cotton prices. He further told that USAID estimated for current year cotton production in Pakistan around 12.8 million bales.

Ihsan-ul-Haq further told that during start of current cotton season the cotton lint prices touched Rs 6,300 per maund but afterwards prices gone low however as Chinese buying of Pakistani yarn was increased and dollar appreciated in relation to Pak Rupee, the cotton prices gone up to Rs. 6,200 per maund and further rise in cotton lint price was expected but reports of large scale cotton lint import by domestic textile mills lowered prices to Rs 6,000 per maund. Now the reports of lower domestic cotton production have again set the upward trend of cotton price #

Courtesy: The Nation


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