Cotton Sowing (Water Irrigation countrywide canal irrigation network for sowing Kharif
In Sindh region growers are busy in sowing cotton and
Punjab Irrigation department has closed all major and water availability in Sindh districts are in normal
minor canals of central Punjab to divert nearly 70,000 condition.
cusecs water towards its southern part for the purpose
of sowing strategic cotton crop over an area of 4 million
acres of land.
Rs 148.19 million for seven agricultural
research projects approved
Upper Jhelum Canal, Lower Jhelum Canal, Upper
Chenab Canal, Lower Chenab Canal, Lower Barri and Punjab Agricultural Research Board (PARB) has
other canals of central Punjab have been closed to meet approved an amount of Rs 148.19 million for
requirements of irrigation water for south Punjab.
funding 7 high-priority research projects.
30, 000 cusecs water from Mangla Dam on river
Jhelum, 20,000 cusecs water from Marala headworks An amount of Rs 17.476 million was approved for
on River Chenab and 19,000 cusecs water from River "Development of Drought Tolerant Cotton
Indus command zone is being released into South Variety" with the objective to develop 20% higher
Punjab Irrigation Thal canal, Muzaffargarh Canal, Dera yielding cotton variety than all other traits in
Ghazi Khan Canal, Havelian, Sindhnai, Rangpur, desirable limits under drought conditions.
Mailsi, Lower Bahawalpur Canal, Punjnad and other Moreover, an amount of Rs 22.406 million was
canals for the month long cotton sowing season. allocated for "Genetic Improvement of Sugarcane
for Herbicide Tolerance" to develop transgenic
River Jhelum and River Chenab command canals versions of Sugarcane varieties HS-240, SPS-234,
irrigate Kharif crops mainly rice, sugarcane, maize,
SPF-213 & CPF-240.
fodder and vegetables over millions of acre of central
Punjab districts - Jhelum, Gujrat, Gujranwala, Sialkot,
Narowal, Sheikhupura, Faisalabad, Sargodha, and An amount of Rs 25.00 million was approved for
Okara. "Development and Commercialization of
Indigenous BT and Herbicide Tolerant Maize
Twelve cotton growing districts - D.G. Khan, Rajanpur, Hybrids" with objective to develop one local maize
Bhakkar, Layya, Muzaffargarh, Multan, Khanewal, hybrid equal or better than the elite maize hybrids
Lodharan, Vehari, Bahawalpur, Bahawalngar and in market.
Rahimyar Khan provides about 70% of the country's
total cotton production to run its textile industry. Minister for Agriculture said agriculture is the top
priority of Punjab government for which adequate
According to the river flows and reservoirs level report resources are being provided to conduct researches
of Water and Power Development Authority, about
1,25,000 cusecs water is flowing into the four live
according to international standards for enhancing
rivers of the country - Indus at Tarbela 35,900 cusecs, productivity on sustainable basis. An efficient
Kabul at Nowshera 25,200 cusecs, Jhelum at Mangla monitoring and evaluation system is being
43,900 cusecs and Chenab at Marala headworks 21,300 introduced for smooth functioning of projects and
cusecs. Of these flows Indus River System Authority ensuring that the objectives of projects are being
(IRSA) is releasing 1,20,000 cusecs water into the fulfilled.
COTTON / SEED‐COTTON PRICES in and exports continue unabated, thousands of
export oriented units would close down resulting in
Subdued business was seen on cotton market in a loss of billions of dollars in foreign exchange.
absence of fresh leads. Karachi Cotton Association
(KCA) official spot was unchanged at Rs 6700. All Pakistan Textile Mills Association (APTMA)
have charged the value added sector of spreading
Lint rates ranged between Rs 6,500 to Rs 6,800 per misleading propaganda and that yarn exports from
maund (37.32 kgs) showing relative easiness in India/neighboring countries are under no
market. restriction. Moreover, yarn exports of value under
US dollars 3.50 per kilogram are under quota
In ready business only a deal of 1059 bales from restraints. Above all, yarn imports into Pakistan are
Nawabshah was done at Rs 6750 and sales duty free. APTMA continues to endorse free trade
included 200 bales from Khanpur in Punjab and policies which they believe are in overall interest
2,529 bales from Rahimyar Khan both being sold of the country.
at Rs 6,800 per maund on Thursday 29-4-10.
Chairman of APTMA of Punjab Zone, has warned
government that imposition of any regulatory duty
SUPPLY & DEMAND or restriction on exports would not only ruin the
spinning industry, it would be a retrograde step
After registering peak prices over the past several which would seriously impair the interest of the
weeks without any let or hindrance, cotton prices growers, Textile Ministry was pushing the spinners
took a pause to take stock of sundry variables to the wall despite the fact that spinners are facing
confronting the trade. First, barely an estimated a net deficit of three million bales of cotton which
floating stock of around 50,000 unsold cotton bales they can ill afford to import at exorbitantly high
from the current season (August 2009-July 2010) prices.
remains in market.
Other reports in market indicated that government
Secondly, apparently nascent in-fighting between has formed a committee comprising of four
the spinners and the value added sector of textile spinners and four representatives of value added
industry has erupted again leading to several sector which is scheduled to meet next Monday in
uncertainties regarding any possible government an attempt to find a solution to the sundry cotton
measures which may be taken to settle the issues and textile related problems which may be
plaguing the textile sector. acceptable to both parties.
In the mean time, rumors were afloat in market that Federal budget and trade policy for the next fiscal
fifteen percent (15%) export duty has been year are likely to be announced within a couple of
clamped on yarn exports, but any such news could months which could incorporate any measures
not be verified. Value added sector of textile government may deem necessary for smooth
industry has restarted a media campaign pleading performance of cotton economy of Pakistan
to the government that if yarn prices are not reined including manufacturing sector.
SUPPLY & DEMAND Government is considering either to impose
regulatory duty on export of yarn or ban exports
Lint trading activity was at low ebb because for the remaining period of the on-going season to
market was guessing as to what would be the protect local value-added sector.
outcome of meeting between the spinners and the
value added sector starting next week which would Textile Ministry has expressed concerns over non-
discuss several issues including advisability or availability and rising prices of cotton yarn in local
otherwise regarding change in yarn export quota, market and to evolve a strategy to save the sector
its abolition or institution of any export duty or from soaring input cost.
levy on yarn exports.
Two options would be considered either to ban
Cotton veterans were of the considered view that yarn export, or impose 15% regulatory duty on
the most desirable solution would be leave the free export--to overcome the commodity's shortage and
market mechanism to play its role to sort out the to bring down prices in local market.
different complexities which creep into smooth
functioning of trade and industry. Ministry has invited representatives of All Pakistan
Textile Mills Association (Aptma), Pakistan
Prices are still on upward march and may go up Hosiery Manufacturing Association (PHMA),
further in coming days. In fact, the matter is Pakistan Denim Exporters Association, Pakistan
shortage of stuff and how the export commitments Bedwear Exporters Association, Karachi Cotton
are going to be met. Association, Pakistan Cotton Fashion Apparel
Exporters and all other stakeholders, to find
Country may need to import some 1.5 million solution for stabilizing the prices of yarn.
bales to meet the demand but despite that here
some experts says they are not sure how much they Value-added sector has proposed ban on export or
will lose in foreign exchange if they fail to supply to impose 25% regulatory duty on export of
commodity. However, ministry is likely to impose
the export orders.
15% duty on export of yarn. Action was taken after
all the value-added textile associations have been
India is giving permission to its cotton exporters to
approached through a letter to Prime Minister
sell cotton to Pak importers, which was contracted
seeking ban on export of cotton yarn.
before the ban. How the prices move after the
Indian move, it will depend on development in
Government has reduced yarn export quota twice
during current fiscal year but failed in evolving a
long-term policy to overcome the crisis
Yarn Export (Government considering permanently and now it is rethinking to further
ban or RD on yarn export) restrict yarn export quota.
Weekly KCA Spot Rates
Date Ex Gin Price Rs. Up Country Total Price
PKR Rs. US c/lb
26-Apr-10 6,500 100 6,600 95.6
27-Apr-10 6,500 100 6,600 95.6
28-Apr-10 6,700 100 6,800 98.5
29-Apr-10 6,700 100 6,800 98.5
30-Apr-10 6,700 100 6,800 98.5
* 37.324 Kg
Textile unreasonable action taken by Textile Ministry had
jeopardized cotton import further escalating
All Pakistan Textile Mills Association (APTMA) domestic cotton prices.
Acting Chairman places on record that Ministry of
Textile Industry has convened a meeting of On numerous occasions, APTMA has explained its
stakeholders to finalize further course of action at position that Government must continue its policy
the behest of downstream sector wherein APTMA of free trade. Textile mills are facing raw material
has not been invited to attend this meeting and shortage and in view of escalating world cotton
present its viewpoint. prices, many mills will shut down and they
apprehend further closures. Imposition of restraints
APTMA strongly protests this discriminatory and other coercive measures will create further
action on the part of Ministry which tantamount to uncertainty, which will prevent imports of cotton
working against national interest. He further said and push the trade into crisis. APTMA urges the
any unilateral action on part of Textile Ministry Ministry of Textile Industry to avoid any
would be opposed and protested by APTMA, discriminatory action and play its positive role as a
largest stakeholder providing valuable foreign Ministry for the whole Textile trade of Pakistan.
exchange and millions of jobs. He added
Aptma fears cotton crisis industry is left with cotton stocks until May 30th,
followed by a severe crisis due to irrational
Chairman All Pakistan Textile Mills Association intervention in free market mechanism by Ministry
(APTMA) Punjab has feared that textile industry of Textile Industry.
would not be able to procure upcoming cotton crop
from farmers due to exorbitant international prices Only 30% of the mills are covered with 90 days
and irrational policies of Ministry of Textile stocks and 70% mills, mainly supplying yarn to
Industry. local market, are carrying 30 days cotton stocks.
Despite assurance by Ministry of Textile Industry
In a statement, Chairman APTMA Punjab said to support cotton import facilitation measures, no
rumors were high that Ministry of Textile Industry tangible step has so far been taken to deal with
was going to impose regulatory duty besides cotton crisis.
imposing ban on exports of cotton yarn from
country. According to him, any such situation Few vested interest groups were misleading the
would prove detrimental to rural economy where government as well as the public by misstating that
farmers are all set to sow cotton. a ban on yarn export would save jobs, which was
factually a wrong perception. There was surplus
It is not understandable as to why spinning yarns ie 15000 tones per month since February
industry is being pushed to the wall with every 2010 due to reduction in exports after undue
passing day. Ministry of Textile Industry was government intervention and many value-added
exerting pressure in a situation where spinning exporters have build up their yarn stocks
industry was already running short of 3 million accordingly.
bales to meet its annual 16 million bales of cotton
consumption requirement. International price of Therefore, the hue and cry made by the vested
cotton has already surged to $0.95 per pound, interest elements is out of place and it was the
making spinning industry unable to spin and sell spinning industry being grilled by Ministry at the
yarn to local ancillary industry on subsidized rate. whims of a few opportunists. APTMA Chairman
Punjab urged both President and Prime Minister to
70% of the $7 billion textile industry was at verge intervene and save the cotton farmers, textile
of collapse at a time when new cotton crop arrives. industry labor force and precious foreign exchange
Cotton farmers would be the ultimate sufferer in for country by stopping Ministry of Textile
such event. Textile Officials feared closure of 70% Industry from taking the industry to a blind alley.
of spinning industry by end May, as majority of
Weekly Sales Report
Crop Year 2009‐10
Punjab Stations Total Bales
Kabir Wala 600
Khan Pur 1540
Rahimyar Khan 3929
Shah Jamal 800
Sindh Stations Total Bales