Tag Archives: Karachi Cotton Association

Karachi Cotton Association expresses serious concern over reports of inducting TCP in the market to procure Lint Cotton from the ginneries at support price

Karachi, July 15, 2016 (PPI-OT): The Karachi Cotton Association has expressed its serious concern on the reports appearing in the section of Press on 12-07-2016 that the Government is considering to induct the Trading Corporation of Pakistan (TCP) in the market to procure Lint Cotton from the ginneries at support price with a view to extend benefit to cotton growers.

The KCA is of the view that any intervention by the Government/Public Sector Organization would not only create distortions in the cotton market but also place adverse repercussion on exports of cotton and its allied products. This would also negate the policy of free trading in cotton being followed very successfully since over a decade which safeguard the interest of all the stakeholders of the cotton economy including the cotton growers.

The KCA believes that sustainable future of all stakeholders of cotton economy depends upon the continuation of a non intervention policy of the Government in the cotton trade so as to safeguard the interest of cotton growers as well and ensure them fair price for their produce over the long run. Under the demand and supply mechanism, the market forces themselves determine the price level of the commodity.

It may be recalled that in the past, the Government through TCP intervened in the cotton market to procure raw cotton from the ginneries at higher than market price but the desired benefit could not be passed on to the cotton growers.

The KCA is of the view that an efficient and effective way to compensate the cotton growers in adverse conditions would be to provide direct subsidy to them by subsidizing electricity, fertilizer and pesticides to reduce their cost of production. This would not only ensure direct benefit to the cotton growers without any middlemen or malpractice but also help to lessen losses to the Government as was the case in the past. Many of these incentives have been covered through Kissan Package and further through the Budget of 2016-17.

The KCA, therefore, strongly urges upon the Government not to make any intervention in the cotton market through Public Sector Organization and continue with the free trading policy of cotton to safeguard the interest of all stakeholders of cotton economy and keep all of them competitive as otherwise, the intervention of the TCP in the cotton market would create unnatural shortage of quality cotton, inflate prices of cotton unnecessarily, render the textile and down-stream industry uncompetitive, accelerate the decline of cotton exports, cause industry closure/unemployment and incur losses of billion of Rupees to the exchequer.

Further, the KCA urges upon the Government to withdraw 4% Customs Duty on import of cotton. This will help the local textile mills to meet their balance requirement of raw material from abroad in the backdrop of shortage of cotton crop at home and make their business competitive in the international market to earn valuable foreign exchange for the country through exports of value added products of cotton.

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: + (92)242-5007, + (92)241-2570, + (92)241-6497
Fax: + (92)241-3035, + (92)241-2580
Email: contact@kcapak.org

Karachi Cotton Association expresses its deep concern over devastating cotton crop failure in cotton season 2015-16

Karachi, July 04, 2016 (PPI-OT): The Karachi Cotton Association has expressed its deep concern over the devastating cotton crop failure in cotton season 2015-16 and expected shortfall in cotton crop 2016-17 season due to which, all stakeholders of cotton economy are badly effected.

Keeping in view of the situation stated above, the local textile industry is compelled to import raw cotton from abroad to meet its requirement of basic raw material and to ensure its contribution towards achieving the target of exports fixed by the Government through exports of valued added products as well as earning much needed foreign exchange for the country.

However, due to payment of 3% Custom Duty and 1% Additional Duty on import of cotton, cost of the basic raw material of the textile industry i.e. imported cotton is considerably increased due to which the local textile industry is unable to compete in the international markets.

Reiterating its firm stand to ensure free trading policy in cotton i.e. free export and free import of cotton without any quantitative and qualitative restrictions, the KCA strongly urges upon the Government to waive all duties and taxes on import of cotton immediately in order to provide an opportunity to the local industry to meet their requirement of raw material from abroad in the backdrop of shortage of cotton crop at home and make their business competitive.

The KCA also urges upon the Government to take concrete and effective measures in all directions to increase cotton production in the years to come so as to meet the rising requirement of the local industry as well as leave adequate surplus cotton for exports to keep the presence of Pakistan cotton in the international market and earn much needed foreign exchange for the country. The provision of export surplus will ensure international price of cotton to the Pakistani growers.

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: + (92)242-5007, + (92)241-2570, + (92)241-6497
Fax: + (92)241-3035, + (92)241-2580
Email: contact@kcapak.org

The Karachi Cotton Association opposes the proposal to impose sales tax on raw

Karachi, June 04, 2015 (PPI-OT): Mr. Amin Hashwani, Chairman, the Karachi Cotton Association has expressed great concern over the intention of the Government to impose Sales Tax on Raw Cotton in the Federal Budget 2015-16 in order to generate its revenue.

The KCA has always strongly opposed the proposal to impose Sales Tax on raw cotton, as it discourages production and inhibits the smooth flow of exports and runs counter to the laid down Government policy of encouraging cotton trade in the country. It is worthwhile to mention here that nowhere in the world Sales Tax is imposed on Raw Cotton. Any hindrance in the smooth exports of cotton will prevent the growers from getting a fair price for their produce, which is a key objective of the Government.

It may be realized by the Government that nearly 80%-85% of the Cotton Crop is exported in the form of Raw Cotton, Cotton Yarn, Cotton Fabrics, Garments and Cotton made-ups and Sales Tax, if levied on Raw Cotton, would be refundable thereon at the export stage. Taking into consideration, substantial expenses involved in Tax collection, administration and in the refund process, the balance available amount to the Government would be comparatively insignificant.

In addition, Exporters of Raw Cotton usually operate on narrow margins Hence, they cannot afford to keep substantial borrowed amounts struck-up by way of payment and refund of Sales Tax for a 6-7 months, or even longer, as was the case in the past. Due to delay in refund of Sales Tax, serious liquidity problems would be created for the cotton exporters resulting in exports of cotton would adversely suffer and compromise the interests of the cotton Growers and Ginners.

The KCA, therefore, strongly urges the Government NOT TO IMPOSE SALES TAX ON RAW COTTON in the forthcoming Federal Budget and keep Raw Cotton exempted from the Sales Tax in order to avoid adverse repercussions for all stakeholders and the general public.

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: + (92)242-5007, + (92)241-2570, + (92)241-6497
Fax: + (92)241-3035, + (92)241-2580
Email: contact@kcapak.org

Karachi Cotton Association Official Spot Rate for Local Dealings in Pak Rupees of 01-06-2015

Karachi, June 01, 2015 (PPI-OT):

                                                       CROP 2014 - 2015
                                                         PART - I
                                                        SPOT RATES
                                        KCA Official Spot Rate for Local Dealings in Pak Rupees
                                        FOR BASE GRADE 3 (THREE) STAPLE LENGTH 1-1/16"
                                        MICRONAIRE VALUE BETWEEN 3.8 To 4.9 NCL

Rate                     Ex-Gin Price      Up-country        Spot Rate          Spot Rate            Difference
for                                         Expenses         Ex-Karachi         Ex. KHI. As on         In Rs.
                                                                                30.05.2015           Ex.Karachi
37.324 kg                      5,450          150                5,600
Equivalent                                                                         5,600                NIL
40 kgs                         5,841          160                6,001             6,001                NIL

Valid for the day established by the Rates Committee at 12:00 Noon.

The Grade and Staple Margins Charts and the percentage allowances for Micronaire blow:

GRADE                                                       S  T   A   P   L   E
                                               (for the period from June 01, 2015 to June 30, 2015)

                   31/32"               1                  1-132"              1-1/16"             1-3/32"            1-1/8"
            37.32kg - 40 kg     37.32kg - 40 kg        37.32kg - 40 kg     37.32kg - 40 kg   37.32kg - 40 kg      37.32kg - 40 kg
Super       -400       -429     -300      -322        -100      -107       +300      322       +450     482       +550      589
1           -450       -482     -350      -375        -200      -214       +250      268       +400     429       +500      536
2           -500       -536     -400      -429        -250      -268       +200      214       +350     375       +450      482
3           -900       -965     -700      -750        -500      -536            BASE           +175     188       +275      295
4          -1350      -1447    -1150     -1232        -950     -1018       -450     -482       -275    -295       -175     -188
5          -1450      -1554    -1250     -1340       -1050     -1125       -550     -589       -375    -402       -275     -295


All above margins are based on Micronaire value between 3.8 to 4.9 NCL for Grades Super, 1, 2, and 3 and Micronaire value between 3.5 to 4.9 NCL for Grades 4 and 5. Approval of Government for Grade Super and Micronaire value 3.8 to 4.9 NCL is awaited.
The discount on the basis of low or high Micronaire is stated below which is applicable in addition to the above mentioned margins:


                    Micronaire below 3.8 in           Percentage               Micronaire in             Percentage
                    Grades Super,1,2 and 3             Allowance               Excess of 4.9             Allowance
                     and Micronaire below 3.2
                       in Grades 4 and 5

                               0.1                        0.5                      0.1                      0.5
                               0.2                        1.0                      0.2                      1.0
                               0.3                        2.0                      0.3                      2.0
                               0.4                        3.0                      0.4                      3.0
                               0.5                        4.0                      0.5                      4.0

                                                            PART -II
                                                     (DOMESTIC TRANSACTION)
                                                     Dated; June 01, 2015
                                                          2014-2015 CROP

Bales     Station                     Rate              Bales           Station                       Rate
1000      Jahanian                    5500              800             Fort Abbas                    5550
1600      Rahim yar Khan              5550              800             Yazman Mandi                  5575
1200      Khan Pur                    5550

                                                              PART - III
                                                              (EXPORTS)
Registration:-                                                          Shipments:-
PERIOD - (MY 2014-15)              CROP                BALES            PERIOD- (MY 2014-15)            CROP             Bales
01-08-14 to 23-05-15            2013 - 2014            10,073           01-08-14 to 23-05-15           2013-14           10,170
01-08-14 to 23-05-15            2014 - 2015           595,752           01-08-14 to 23-05-15           2014-15          504,602
                                   Total:-            605,825                                           Total;-         514,772

Source: Trade Development Authority of Pakistan

                         PART -IV                                          PART - V
                         (IMPORTS)                               (Mills Consumption of Raw Cotton)
                                                                   Cotton Season 2014-2015

PERIOD - (MY 2014-15)           Qty. in MT            Month                         Bales
Aug., 14 to March., 2015        109,239               Aug., 14 to Feb.,2015       9,322,435
April, 2015                      12,545               March, 2015                 1,346,706
                                134,784               Total:-                    10,669,141

Source: Pakistan Bureau of Statistics

                      (ARRIVAL CROP 2014-15)                                         (COMPOSITE EXCHANGE RATES)
                      As on May 01, 2015 (Final)                                          Date; June 01, 2015
                                                 In Bales
                               Punjab             Sindh              Pakistan         Country     Selling    Buying       Sight
Total Arrivals              10,896,647         3,974,500           14,871,174
Sales to TCP                    59,200            35,700               94,900
" to Exporters                  78,218           396,956              474,174           USA        101.95    101.75       101.54
" to Mills                  10,604,062         3,469,133           14,073,195
Unsold Stocks as on 01-05-2015                                        227,905
Source: National Bank of Pakistan
Source: PCGA

                                          SUMMARY OF COTTON ARRIVAL IN 2014-15 AND 2013-14 AS ON 01.05.2015 (Final)

                                                            2014-15                                               2013-14
                                           PUNJAB            SINDH                TOTAL           PUNJAB           SINDH                TOTAL
Total Arrival:                           10,896,674        3,974,500            14,871,174       9,631,362       3,760,332            13,391,694
Difference in bales                       1,265,312          214,368             1,479,480
%                                             13,14             5.70                 11.05
Flow during this fortnight                    7,211                0                 7,211
Sales to TCP                                 59,200           35,700                94,900
Sales to Exporters                           78,218          396,956               475,174         123,826         275,556               399,382
Sales to Mills                           10,604,062        3,469,133            14,073,195       9,230,582       3,353,914            12,584,496
Unsold stocks                                                                      227,905                                               407,816

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: +(92)242-5007, +(92)241-2570, +(92)241-6497
Fax: +(92)241-3035, +(92)241-2580
Email: contact@kcapak.org

Karachi Cotton Association Official Spot Rate for Local Dealings in Pak Rupees of 29-05-2015

Karachi, May 29, 2015 (PPI-OT):

                                                       CROP 2014 - 2015
                                                         PART - I
                                                        SPOT RATES
                                        KCA Official Spot Rate for Local Dealings in Pak Rupees
                                        FOR BASE GRADE 3 (THREE) STAPLE LENGTH 1-1/16"
                                        MICRONAIRE VALUE BETWEEN 3.8 To 4.9 NCL

Rate                     Ex-Gin Price      Up-country        Spot Rate          Spot Rate            Difference
for                                         Expenses         Ex-Karachi         Ex. KHI. As on         In Rs.
                                                                                28.05.2015           Ex.Karachi
37.324 kg                      5,400          150                5,600
Equivalent                                                                         5,550               + 50
40 kgs                         5,787          160                6,001             5,947               + 54

Valid for the day established by the Rates Committee at 12:00 Noon.

The Grade and Staple Margins Charts and the percentage allowances for Micronaire blow and in excess of the limits will be published in the DMR of the Association every Mondy or on Tuesday.if Monday happens to be a closed holiday.

                                                            PART -II
                                                     (DOMESTIC TRANSACTION)
                                                     Dated; May 29, 2015
                                                          2014-2015 CROP

Bales     Station                     Rate              Bales           Station                       Rate
1000      Mill to Mill                5600              200             Bahawal Pur                   5400
2000      Mehrab Pur             5600 (Condition)       724             Ali Pur                       5550
200       Lodhran                     5150              400             Khan Pur                      5625

                                                              PART - III
                                                              (EXPORTS)
Registration:-                                                          Shipments:-
PERIOD - (MY 2014-15)              CROP                BALES            PERIOD- (MY 2014-15)            CROP             Bales
01-08-14 to 23-05-15            2013 - 2014            10,073           01-08-14 to 23-05-15           2013-14           10,170
01-08-14 to 23-05-15            2014 - 2015           595,752           01-08-14 to 23-05-15           2014-15          504,602
                                   Total:-            605,825                                           Total;-         514,772

Source: Trade Development Authority of Pakistan

                         PART -IV                                          PART - V
                         (IMPORTS)                               (Mills Consumption of Raw Cotton)
                                                                   Cotton Season 2014-2015

PERIOD - (MY 2014-15)           Qty. in MT            Month                         Bales
Aug., 14 to March., 2015        109,239               Aug., 14 to Feb.,2015       9,322,435
April, 2015                      12,545               March, 2015                 1,346,706
                                134,784               Total:-                    10,669,141

Source: Pakistan Bureau of Statistics

                      (ARRIVAL CROP 2014-15)                                         (COMPOSITE EXCHANGE RATES)
                      As on May 01, 2015 (Final)                                          Date; May 29, 2015
                                                 In Bales
                               Punjab             Sindh              Pakistan         Country     Selling    Buying       Sight
Total Arrivals              10,896,647         3,974,500           14,871,174
Sales to TCP                    59,200            35,700               94,900
" to Exporters                  78,218           396,956              474,174           USA        102.05    101.85       101.64
" to Mills                  10,604,062         3,469,133           14,073,195
Unsold Stocks as on 01-05-2015                                        227,905
Source: National Bank of Pakistan
Source: PCGA

                                          SUMMARY OF COTTON ARRIVAL IN 2014-15 AND 2013-14 AS ON 01.05.2015 (Final)

                                                            2014-15                                               2013-14
                                           PUNJAB            SINDH                TOTAL           PUNJAB           SINDH                TOTAL
Total Arrival:                           10,896,674        3,974,500            14,871,174       9,631,362       3,760,332            13,391,694
Difference in bales                       1,265,312          214,368             1,479,480
%                                             13,14             5.70                 11.05
Flow during this fortnight                    7,211                0                 7,211
Sales to TCP                                 59,200           35,700                94,900
Sales to Exporters                           78,218          396,956               475,174         123,826         275,556               399,382
Sales to Mills                           10,604,062        3,469,133            14,073,195       9,230,582       3,353,914            12,584,496
Unsold stocks                                                                      227,905                                               407,816

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: +(92)242-5007, +(92)241-2570, +(92)241-6497
Fax: +(92)241-3035, +(92)241-2580
Email: contact@kcapak.org

Karachi Cotton Association Official Spot Rate for Local Dealings in Pak Rupees of 28-05-2015

Karachi, May 28, 2015 (PPI-OT):

                                                       CROP 2014 - 2015
                                                         PART - I
                                                        SPOT RATES
                                        KCA Official Spot Rate for Local Dealings in Pak Rupees
                                        FOR BASE GRADE 3 (THREE) STAPLE LENGTH 1-1/16"
                                        MICRONAIRE VALUE BETWEEN 3.8 To 4.9 NCL

Rate                     Ex-Gin Price      Up-country        Spot Rate          Spot Rate            Difference
for                                         Expenses         Ex-Karachi         Ex. KHI. As on         In Rs.
                                                                                27.05.2015           Ex.Karachi
37.324 kg                      5,400          150                5,550
Equivalent                                                                         5,550                NIL
40 kgs                         5,787          160                5,947             5,947                NIL

Valid for the day established by the Rates Committee at 12:00 Noon.

The Grade and Staple Margins Charts and the percentage allowances for Micronaire blow and in excess of the limits will be published in the DMR of the Association every Mondy or on Tuesday.if Monday happens to be a closed holiday.

                                                            PART -II
                                                     (DOMESTIC TRANSACTION)
                                                     Dated; May 28, 2015
                                                          2014-2015 CROP

Bales     Station                     Rate              Bales           Station                       Rate
200       Karror Pakka                5100              400             Sumandari                     5400
200       Mailsi                      5200              200             Multan                        5400
500       Tiba Sultan Pur             5350              400             Mian Chano                    5600

                                                              PART - III
                                                              (EXPORTS)
Registration:-                                                          Shipments:-
PERIOD - (MY 2014-15)              CROP                BALES            PERIOD- (MY 2014-15)            CROP             Bales
01-08-14 to 15-05-15            2013 - 2014            10,073           01-08-14 to 15-05-15           2013-14           10,170
01-08-14 to 15-05-15            2014 - 2015           594,961           01-08-14 to 15-05-15           2014-15          501,196
                                   Total:-            605,034                                           Total;-         511,366

Source: Trade Development Authority of Pakistan

                         PART -IV                                          PART - V
                         (IMPORTS)                               (Mills Consumption of Raw Cotton)
                                                                   Cotton Season 2014-2015

PERIOD - (MY 2014-15)           Qty. in MT            Month                         Bales
Aug., 14 to March., 2015        109,239               Aug., 14 to Feb.,2015       9,322,435
April, 2015                      25,545               March, 2015                 1,346,706
                                134,784               Total:-                    10,669,141

Source: Pakistan Bureau of Statistics

                      (ARRIVAL CROP 2014-15)                                         (COMPOSITE EXCHANGE RATES)
                       As on May 01, 2015 (Final)                                          Date; May 28, 2015
                                                 In Bales
                               Punjab             Sindh              Pakistan         Country     Selling    Buying       Sight
Total Arrivals              10,896,647         3,974,500           14,871,174
Sales to TCP                    59,200            35,700               94,900
" to Exporters                  78,218           396,956              474,174           USA        101.95    101.75       101.54
" to Mills                  10,604,062         3,469,133           14,073,195
Unsold Stocks as on 01-05-2015                                        227,905
Source: National Bank of Pakistan
Source: PCGA

                                          SUMMARY OF COTTON ARRIVAL IN 2014-15 AND 2013-14 AS ON 01.05.2015 (Final)

                                                            2014-15                                               2013-14
                                           PUNJAB            SINDH                TOTAL           PUNJAB           SINDH                TOTAL
Total Arrival:                           10,896,674        3,974,500            14,871,174       9,631,362       3,760,332            13,391,694
Difference in bales                       1,265,312          214,368             1,479,480
%                                             13,14             5.70                 11.05
Flow during this fortnight                    7,211                0                 7,211
Sales to TCP                                 59,200           35,700                94,900
Sales to Exporters                           78,218          396,956               475,174         123,826         275,556               399,382
Sales to Mills                           10,604,062        3,469,133            14,073,195       9,230,582       3,353,914            12,584,496
Unsold stocks                                                                      227,905                                               407,816

For more information, contact:
Karachi Cotton Association
The Cotton Exchange I.I Chundrigar Road,
Karachi, Pakistan.
Phone: +(92)242-5007, +(92)241-2570, +(92)241-6497
Fax: +(92)241-3035, +(92)241-2580
Email: contact@kcapak.org