Firm prices in the cotton market amid slowing trade – Markets
LAHORE: The local market on Saturday remained stable and trading volume remained satisfactory.
Cotton analyst Naseem Usman said the cotton rate in Sindh is between Rs 20,800 and Rs 21,000 per maund. The cotton rate in Punjab is between Rs 20,500 and Rs 22,000 per maund.
1200 bales of Tando Adam were sold at Rs 20,700 to Rs 20,900 per maund, 400 bales of Shahdad Pur were sold at Rs 20,700 to Rs 20,800 per maund, 400 bales of Sanghar were sold at Rs 20,600 to Rs 20,750 per maund, 400 bales of Hyderabad were sold at Rs 20,600 to Rs 20,800 per maund and 100 bales of Burewala were sold at Rs 21,500 per maund
Winder’s Kappas was available at Rs 9500 to Rs 9550 per 40 Kg. Sakran’s Phutti rate was between Rs 9500 and Rs 9600 per 40 kg. New Kappas rate of Vehari was between Rs 9500 and Rs 10,200, Kappas rate of Mian Channu was between Rs 9600 and Rs 10,000, Kappas rate of Khanpur was Rs 8890 while Kappas of Chichawatni was Rs 9600 to Rs 10,000 Kappas was Rs 9400 to Rs 10,600.
Textiles and apparel exports rose 28.26% year-on-year to $17.62 billion in the first 11 months of this fiscal year (11MFY22), mainly due to a massive depreciation in the value of the rupee and a steady increase in global demand.
According to data released Friday by the Pakistan Bureau of Statistics (PBS), the year-on-year growth rate in May was 56.02 percent, the highest monthly growth rate.
PBS data showed ready-to-wear clothing exports jumped 30.63% in value and 49.70% in quantity between July and May, while knitwear exports edged up 36. 44% in value but fell 4.34% in quantity. Bedding exports increased by 21.68% in value and 15.19% in quantity.
Exports of towels increased by 21.66 pc in value and 7.17 pc in quantity, while those of cotton fabrics increased by 26.81 pc in value and 7.14 pc in quantity.
Among the basic products, exports of cotton yarn increased by 24.18 pc and that of yarn made from materials other than cotton increased by 109.68 pc. Exports of made-up articles excluding towels increased by 15.19 pc, while those of tents, canvas and tarpaulins fell by 2.16 pc during the period under review. During the period under review, exports of art, silk and synthetic textiles increased by 29.36%.
Imports of textile machinery rose 47.24 percent year-on-year to $722.605 million in July-May, reflecting the expansion or upgrading of the textile industry.
To make up for the deficit in the domestic sector, the industry imported raw cotton in July-May value, which showed an increase of 25.28 pc, while the value of imports of synthetic fibers showed a growth of 19.29 pc. pc, followed by the import of man-made fibres. silk yarn, which posted a gain of 28.80 pc during the months under review.
In 11MFY22, imports of used clothing increased by 46.90 pc compared to the same period last year.
During the 11-month period, the country’s overall exports recorded a year-on-year growth of around 27.90% to reach $28.87 billion, compared to $22.57 billion in the same period last year. last year. The government has set a target of $31 billion for 2021-2022.
The government already unveiled a textile and clothing policy last month with various measures to promote the production as well as the quality of textiles and clothing. In the 2021-22 budget, the government drastically reduced duties and taxes on imports of several hundred raw materials to lower the cost of inputs for exportable products. Liquidity issues have also been largely resolved through the timely release of refunds, customs rebates and the payment of cash grants.
Saqib Naseem, President of Pakistan Yarn Merchants Association (PYMA), and Muhammad Junaid Teli, Vice President, Sindh and Balochistan Region, have drawn the attention of Finance and Revenue Minister Miftah Ismail to anomalies in the 2022-23 federal budget.
They explained that polyester filament yarns (HS codes 5402.3300, 5402.4600, 5402.4700 and 5402.5200), also known as synthetic yarns, are the basic raw material of Pakistani textile industry. Cotton’s share of global fiber consumption fell from nearly 70% in 1960 to just 27% at the end of 2020. Its place has now been captured by man-made or man-made yarns.
“A very large SME in the Pakistani textile industry (more than 500,000 looms and knitting machines) consumes polyester filament yarn. Commercial importers of polyester filament yarn act as financiers of this SME sector and meet the demands of this sector using their own capital and resources,” they said.
Saqib Naseem, Junaid Teli added that we have seen in the past that whenever the difference in WHT is greater than one percent between commercial imports and industrial imports, the majority imports of polyester filament yarns shift to the industrial imports, which leads to corruption and misuse of this facility and the public treasury.
They further stated that Polyester Filament Yarn falls under the Commodity Category (SRO 1125) and in the previous budget of FY 2021-22, the government imposed WHT at the import stage, one for cent for industrial importers and two per cent for trade. However, in the 2022-23 Federal Budget, the government maintained WHT at 1% for industrial imports under SRO 1125, while commercial importers will be charged WHT at 3.5% with MTR and 4% with FTR . The tariff on polyester filament yarn already exists in the cascading system of the polyester value chain and it is already higher.
Saqib Naseem, Junaid Teli urged Finance and Revenue Minister Miftah Ismail to please continue with two percent WHT with FTR on commercial imports on items falling under SRO 1125. From reliable sources, it has been learned that the government may impose ACD&RD on polyester filament yarns (HS code: 5402.3300, 5402.4600, 5402.4700 & 5402.5200).
Since these are basic raw materials of the textile industry, we request that you do not impose ACD and RD on these HS codes. We also ask that you streamline the tariff of duties for Poy (5402.4600) and Polyester Filament Drawn Yarn (PFDY) to seven percent from the current 11 percent.
The new cotton spot rate remained unchanged at Rs 20,600 per maund. Polyester fiber was available at Rs 310 per kg.
Copyright Business Recorder, 2022