Traders are hopeful that very soon trading will resume on the cotton market as both provincial and federal governments had allowed different sectors to start their operations phase by phase.
Market sources said that ginners were under pressure because they were unable to sell 5 lac bales of cotton because of the lock down due to the coronavirus.
Cotton Analyst Naseem Usman told that stakeholders should decide the support price of cotton without going into any controversy because it is the long standing demand of cotton farmers that government should announce the support price of cotton in the same way as they announced the support price of wheat and rice.
He said that according to well informed sources ministry of National Food Security and Research and ministry of commerce are not on the same page regarding the announcement of support price of Phutti.
Sources said that ministry of National Food Security had proposed that support price of Phutti should be Rs 4224 per maund which was opposed by ministry of commerce.
It is expected that there will be hot debate between the officials of ministry of commerce and ministry of National Food Security on the price of Phutti in the up coming meeting of Economic Coordination Committe. Naseem said that ministry of National Food Security had proposed the price in order to encourage the farmers and to increase the production of cotton.
However ministry of commerce had opposed it on the ground that if the local prices are more than international market then it will be difficult for the textile value chain to compete it with international market.
He also said that spot rate remained unchanged at Rs 8700 per maund. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8800 per maund.
The polyester fiber was available at Rs 160 per kg.
Source: This News has been taken from www.brecorder.com
