TCP offloads cotton as markets turn the heat

08 Jul '05

2 min read

Past couple of weeks witnessed active market participation by Trading Corporation of Pakistan, which has reportedly sold cotton between Rs 2301 to Rs 2441 per maund (37.32 kgs), depending on its quality.

The nation's sole market intervention body has so far liquidated almost 1.6 million bales (170 kgs) reducing its stocks procured during the 2004-05 to almost half of 800,000 bales showing evidence of mills consuming stocks for local production.

Mills have reportedly purchased nearly 715,000 bales of the 800,000 bales sold by the Trading Corporation of Pakistan (TCP), with 85,000 bales purchased by traders.

The Chairman of All Pakistan Textile Mills Association (APTMA) Arif Saeed has been quoted in media stating cotton consumption will reach 15 million bales (170 kgs) during this season.

Some traders speculate the country's annual cotton consumption over 16 million bales during the forthcoming season (2005-06) as spinning capacity showed marked increase and demand for special imported lint going up to produce dedicated textile products for the export market.

TCP is slated to float another tender for sale bids for 85,000 bales next Monday, July 11, 2005.

Monsoon, currently on in most parts of the country has led to water logging in certain parts, but standing crops have been spared. In case flood losses are coming in, then the country may have to import long staple variety of cotton, sources said.

Official sourcesinform cultivation of cotton on 3.2 million hectares of land showing 2.1 percent rise compared to same time last year. This is 98.7 percent of the overall target of 3.247 million hectares set by the Federal Agriculture Committee (FAC) for the year season 2005-06.

Meanwhile, the International Cotton Advisory Committee (ICAC) has forecast global surge in cotton consumption by 2 percent reaching 109 million bales (4870 lbs) during the next season.

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