960413

Cotton import bookings commence

DR ZAFAR HASSAN

LAHORE: According to leading cotton commission house in Karachi, a few contracts for the import of medium staple cottons have already been drawn up and executed. It has now become quite clear that the domestic mills in Pakistan would have to import considerable quantities of raw cotton soon to tide over from the current 1995-96 to the next 1996-97 season. Weather conditions in southern Sindh are being described as not being very conducive for early arrival of the new crop (1996-97). Due to dry Quetta winds now blowing over southern Sindh, considerable resowing has been necessitated there. A progressive cotton grower in lower Sindh stated that Dakkan winds are required for the cotton fields there for proper sprouting. Moreover, he added, that due to prolonged picking of cotton plants in Sindh, much of the area was not prepared for sowing the 1996-97 crop earlier. Thus, though some arrival of Sindh crop may be expected in June or July, 1996, it would not be till August of 1996 that cotton crop from lower Sindh may arrive in satisfactory quantities.

Due to current tightness of cotton supplies at hand, lint values are increasing without let or hinderance, viz. a reported transaction of 300 bales of MNH-93 having transpired at Rs 2500 per maund. On the other hand, the cotton ginners are not easy sellers, the domestic spinning mills are also buying cotton gradually. Furthermore, the cotton exporters are also said to be disposing some their cotton stocks locally. One more lot of new crop (1996-97) cotton from Mirpurkhas was said to have sold at Rs 2300 per maund a couple of days ago for end June/early July, 1996 delivery.

Thus the cotton ginners are holding their cotton stocks tightly, while the textile mills are also not rushing too frantically. But certain pointers are now leading to prospects of import of several hundred thousand bales of cotton, mostly from the CIS. However, if the USA cotton rates become competitive, mills here would also wish to import raw cotton from the USA, which has fine colour and quality, but is slightly neppy.

In actual transactions, 200 bales from Sakrand sold at Rs 2200 per maund on Saturday. An exporter sold 100 bales each from New Saeedabad, Kazi Ahmed and Shahdadpur, also at Rs 2200 per maund, but on ex-Karachi basis. The idea for lint price from the Khairpur district ranged from Rs 2300 to Rs 2325 per maund. The price idea for lint from upper Sindh (K-68) ranged from Rs 2375 to Rs 2400 per maund on Saturday.

In the Punjab, 400 cotton bales from Mailsi, 1500 bales from Yazman Mandi and 3,000 bales from Bahawalpur, all are said to have sold at Rs 2350 per maund. However, 3,400 bales from Rahimyar Khan are said to have been sold at Rs 2450 per maund. Last but not least, 300 bales of cotton from Chak Jhumra near Chinniot sold at the season's highest rate, namely Rs 2,500 per maund.

While almost all of this year's (1995-96) cotton production, except for a few hundred thousand bales, has been sold out, the vice-chairman of the Pakistan Cotton Ginners Association has recently been demanding from the government to arrnage with the Cotton Export Corporation (CEC) to buy out the balance output lying with the ginners to save the ginners from colossal losses". On the other hand, local lint prices have shot up by at least Rs 600 per maund (37.32 kgs) over the past few weeks, now touching Rs 2500 per maund.

On the other hand, the textile mills are demanding that further exports of raw cotton be banned. However, the chairman of Karachi Cotton Association (KCA) has stated recently that "any ban (on the export of raw cotton) will seriously disturb the smooth marketing of cotton and cause decline in (cotton) prices" at home. Thus the matrix of cotton marketing contains the interplay of intricate variables where all the sectors claim for immediate redress of their setbacks or adversities, even if they are of provisional or short-term in nature.