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PAKISTAN COTTON MARKET UPDATECotton prices drop despite strong demandThe Spot Rate Committee of the Karachi Cotton Association on Monday decreased the spot rate by Rs 150 per maund and closed it at Rs 13100 per maund.The Spot Rate Committee of the Karachi Cotton Association decreased the spot rate by Rs 150 per maund and closed it at Rs 13100 per maund. The Polyester Fiber was available at Rs 222 per kg.The local cotton market remained bearish and the volume remained satisfactory. Cotton Analyst Naseem Usman told Business Recorder that Punjab Seed Council in its meeting gave approval to the five new varieties of Bt cotton and one variety of non BT cotton of Central Cotton Research Institute Multan.The rate of cotton in Sindh is in between Rs 12000 to Rs 12900 per maund and the rate of cotton in Punjab is in between Rs 12600 to Rs 12800 per maund.The rate of the new crop of Phutti in Sindh was in between Rs 4500 to Rs 5500 per 40 kg. The rate of Phutti in Punjab is in between Rs 4800 to Rs 5600 per 40 Kg. The rate of Banola in Sindh is in between Rs 1500 to Rs 1600 per maund. The rate of Banola in Punjab is in between Rs 1550 to Rs 1700 per maund. The rate of cotton in Balochistan is in between Rs 12700- 12800 per maund. The rate of Phutti in Balochistan is Rs 5800- 6500 per maund.

All India Weather Forecast for September 21, 2021Weather systems made across the countryThe Cyclonic Circulation lies over North Odisha. A low pressure area is persisting over eastern parts of Rajasthan and adjoining western parts of Madhya Pradesh. A trough is extending from Telangana to South Tamil Nadu across Rayalaseema at a low level.Weather movement across the country during the last 24 hoursDuring the last 24 hours, light to moderate rain at isolated places over Gangetic West Bengal, North Konkan and Goa, parts of Odisha and isolated parts of Gujarat, West Madhya Pradesh, Vidarbha, South Tamil Nadu and South Coast of Andhra Pradesh. But it rained heavily. Light to moderate rain occurred over remaining parts of Tamil Nadu, Gujarat, South and Southeast Rajasthan, parts of Madhya Pradesh, Uttarakhand, Himachal Pradesh, Chhattisgarh, parts of Jharkhand and parts of Bihar and Assam. Light rain occurred over North Haryana, Western parts of Rajasthan, isolated parts of Kerala, Coastal Karnataka, Telangana and Andhra Pradesh.Possible weather activity during next 24 hoursDuring the next 24 hours, Gangetic West Bengal, parts of Odisha, Vidarbha, Marathwada, parts of Telangana, Konkan and Goa, parts of Madhya Pradesh, Gujarat, south and southeast Rajasthan, Andaman and Nicobar Islands and Uttarakhand Light to moderate rain with isolated heavy rains may occur at some places.Sub-Himalayan West Bengal, Northeast India, parts of Bihar, Jharkhand, Uttar Pradesh, Chhattisgarh, Madhya Maharashtra, Coastal and North Interior Karnataka, Coastal Andhra Pradesh, parts of Tamil Nadu, Punjab, Haryana, parts of Delhi and Himachal Pradesh Light to moderate rain may occur. . Light rain is possible over South Interior Karnataka, Kerala, Lakshadweep, Saurashtra, Kutch and Western parts of Rajasthan.

Today evening, the rupee depreciated by 26 paise to close at Rs 73.74 against the dollar.Sensex fell, closed after breaking 525 pointsToday the stock market closed with a fall. Today, where the Sensex closed at the level of 58490.93 points, down by about 524.96 points. On the other hand, Nifty closed at 17396.90 points down by 188.30 points.  

Cotton Corporation India, Navi MumbaiAppeal to Cotton BuyersCCI is extending attractive lifting period of 90 days on buying of just 5000 bales for MSME mills category, 10,000 bales for other spinning mills and 50,000 bales for Cotton Traders. The benefit of the scheme is available upto 30th September 2021. Therefore our esteemed buyers are advised to plan their purchases accordingly.

With new arrivals, cotton rates above MSPTrade estimates prices to fall by Nov as more bales hit the market The new cotton crop has begun arriving in northern markets, Karnataka and Telangala with prices of kapas (raw cotton) ruling at least 10 per cent higher than the minimum support price (MSP) levels fixed by the Centre for the new season starting October.The trade estimates the daily market arrivals at over 10,000 bales, bulk of it mainly in the North. Modal prices (rates at which most trade in the natural fibre takes place) of raw cotton are hovering between ₹6,400 and ₹7,000 per quintal across various markets, depending on the quality and moisture content. Prices are higher than the MSP of ₹5,726 per quintal.“Overall, the crop looks good in North India. The prices are in the ₹6,000-7,000 range, depending on moisture, which is 12-14 per cent,” said Sushil Phutela, Director, Indian Cotton Association Ltd in Bhatinda.The trade expects the North India crop to be better than last year’s 65 lakh bales. “The crop won’t be less than last year. The rains are seen boosting yields, while in some areas there has been some impact. Overall, we expect the crop to be 1-2 lakh bales higher than last year,” Phutela said.Cotton acreage this year is lower by 5.75 per cent at 119.66 lakh hectares, as per Agriculture Ministry’s latest data. “The overall crop condition is good as on date and, based on the feedback from the 10 growing States, the yield will be much higher this year and quality very good,” said Atul Ganatra, President, Cotton Association of India (CAI), the apex trade body. CAI is expected to come out with crop projections by the month-end.Sporadic arrivalsCAI had earlier estimated closing stocks for the crop year 2020-21 as on September 30 at 82.50 lakh bales of 170 kg each. Sporadic arrivals have also started from Karnataka, Andhra Pradesh, Telangana, Maharashtra and Gujarat. “Kapas prices are ₹6,900-7,500 per quintal, while cottonseed trades in the ₹3,700-4,000 range. Arrivals will increase after October 15 and there are chances of prices coming down, but unlikely to go below MSP till November-end. It all depends on the crop size and market arrivals,” said Ramanuj Das Boob, a sourcing agent for spinning mills and multinational companies in Raichur.Phutela said the demand is slow as most of the spinning mills have covered their needs till December. If the moisture comes down, demand may improve over the next couple of weeks. “I think by mid-November, the Cotton Corporation of India (CCI) may enter the markets in half growing regions. Many feel that the CCI may not get a chance to enter the market as minimum prices are above MSP. However, with cottonseed prices coming pressure, raw cotton may also come down below MSP by mid-November,” Phutela said.

All types of footwear, most textile products to have GST of 12%Council decides to do away with inverted duty structure All footwear, irrespective of prices will attract Goods & Services Tax (GST) at 12 per cent while barring cotton, all textile products including readymade garments will have GST at the rate of 12 per cent. This will be possible as GST Council has decided to do away with inverted duty structure (IDS). It could result in rise in prices of low-priced products.An ‘Inverted duty structure’ means a higher duty on inputs and a lower levy on finished products. This results in a higher refund to industry which affects the cash flows for companies and revenue collections for the government. Also, consumers do not gain anything,In its meeting on Friday, the Council decided: “GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, as was discussed in earlier Council Meeting and was deferred for an appropriate time, will be implemented with effect from January 1, 2022.” However, post the meeting, rates were not announced.Textile sectorAn official said that with the correction of inverted duty structure in textile sector the rate on cotton yarn will continue to be 5 per cent while it will be 12 per cent on mandmade fibre, yarn, readymade garment, fabric and dying. As of now for garments and made-up articles, rate is 5 per cent of the sale value not exceeding ₹1,000 per piece and 12 per cent for articles of sale value exceeding ₹1,000 per piece. Here on, all will have GST at the rate of 12 per cent.

Rupee depreciates against dollar, loses 27 paiseRupee opened with weakness today against the dollar in the foreign exchange market. Today the rupee opened with a weakness of 27 paise at Rs 73.74 against the dollar. At the same time, on Friday, the rupee closed at Rs 73.48 with a strength of 4 paise against the dollar.Today the stock market opened with a fall.Today the BSE Sensex fell by about 383.15 points and opened at 58632.74 points. On the other hand, the Nifty of NSE opened with a decline of 159.00 points at the level of 17426.20 points.  

All India Weather Forecast for September 20, 2021Weather systems made across the countryThe Monsoon Trough now passing through the center of a low pressure area over Jaisalmer, East Rajasthan and West Madhya Pradesh, Sidhi, Daltonganj, Jamshedpur, Digha and then moving in a southwesterly direction towards Northeast Bay of Bengal. Is. A Cyclonic Circulation is persisting over Northwest Bay of Bengal. It is inclined towards southwest with elevation. It will move in the west direction. A trough is extending from Telangana to South Tamil Nadu across Rayalaseema at lower levels.Weather movement across the country during the last 24 hoursDuring the last 24 hours, isolated heavy to very heavy rainfall occurred at two places over southeast Rajasthan, western parts of Madhya Pradesh, sub-Himalayan West Bengal and Andaman and Nicobar Islands. Light to moderate rain over Northeast India, remaining parts of West Bengal, Jharkhand, parts of Odisha, remaining parts of East Rajasthan, parts of Gujarat, isolated parts of Chhattisgarh, Madhya Maharashtra, parts of Coastal Andhra Pradesh and Rayalaseema Hui. Light rain occurred over parts of Himachal Pradesh, Uttarakhand, Bihar, East Madhya Pradesh, parts of southwest Rajasthan, Coastal Karnataka, Kerala and parts of Tamil Nadu.Possible weather activity during next 24 hoursDuring the next 24 hours, light to moderate rain with isolated heavy falls at isolated places over Odisha, parts of Chhattisgarh, isolated parts of Gangetic West Bengal, Jharkhand, parts of South Rajasthan and Vidarbha and Telangana Might be possible. Light to moderate rain is possible over Sub-Himalayan West Bengal, Sikkim, Northeast India, parts of Bihar, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Gujarat, Konkan and Goa, Andaman and Nicobar Islands and North Coastal Andhra Pradesh. Light rain is possible over Madhya Maharashtra, Rayalaseema, Coastal Karnataka and Kerala.

Abolish reverse charge mechanism on cotton: Harish RaoFinance Minister Harish Rao has requested the GST Council to take steps to abolish reverse charge mechanism on cotton.He wanted the GST Council to discuss the issue with other cotton growing States like Maharashtra and Gujarat and address the concerns with the fitment committee for fresh view. He made this request during the 45th GST Council meeting held in Lucknow on Friday.According to a release, the issue of bringing petrol and diesel into the GST fold was raised. The GST Council chairman clarified that the issue was brought into the agenda due to directions issued by the Kerala HC and it was decided to continue the present status.When Mr. Harish Rao informed the Council meeting about the IGST amount that was transferred into consolidated fund of India and Telangana yet to get ₹210 crore due, the chairman assured that the issue would be resolved at the earliest.The release said that the joint secretary Revenue made a detailed presentation on the revenue position and options and it was found that Telangana’s revenue gap was the lowest.

PAKISTAN COTTON MARKET UPDATEModerate trading activity on cotton marketThe local cotton market on Friday remained stable and the volume remained satisfactory.The Spot Rate remained unchanged at Rs 13250 per maund. The Polyester Fibre was available at Rs 222 per kg.The rate of cotton in Sindh is in between Rs 12400 to Rs 12500 per maund and the rate of cotton in Punjab is in between Rs 13300 to Rs 13500 per maund.The rate of the new crop of Phutti in Sindh was in between Rs 4500 to Rs 5800 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5000 to Rs 5800 per 40 Kg. The rate of Banola in Sindh is in between Rs 1650 to Rs 1750 per maund. The rate of Banola in Punjab is in between Rs 1650 to Rs 1800 per maund. The rate of cotton in Balochistan is in between Rs 13100- 13200 per maund. The rate of Phutti in Balochistan is Rs 6000-6800 per maund."The exports report was pretty good, especially with more sales to China, but a stronger dollar index is not helping," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

ICE COTTON SUMMARYCotton heads for third straight weekly fall on firmer dollar"The dollar is on the rise again. But the demand has been pretty good, issue is merchants don't have their hands on the crop yet, and cotton at 90 cents is a rich price," said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi. "On the technical front, cotton prices have good support around 92 cents and we have strong resistance at 95 cents." The dollar rose to a near four-week high against its rivals, potentially limiting demand for the natural fiber by making it more expensive for buyers holding other currencies.On Thursday, the U.S. Department of Agriculture's weekly export sales report showed exports of 237,500 running bales (RB) of cotton, up 53% from the previous week. Sentiment on the Wall Street remained subdued as U.S. stock indexes slipped with major technology firms weighing the most, while uncertainty over higher corporate taxes and an upcoming Federal Reserve meeting kept traders to the sidelines.Total futures market volume fell by 8,392 to 11,842 lots. Data showed total open interest fell 724 to 272,662 contracts in the previous session.Certificated cotton stocks deliverable as of Sept. 15 totalled 63,515 480-lb bales, down from 64,455 in the previous session.