Stories in the
Thursday, 28 September 2017
SPEECH BY THE OUTGOING CHAIRMAN, THE KCA
SPEECH BY THE OUTGOING CHAIRMAN, THE KCA,
MUHAMMAD ATIF DADA
AT THE ORDINARY GENERAL MEETING OF THE MEMBERS
OF THE KCA HELD ON 26.09.2017
My Colleagues on the Executive Committee
Distinguished Members of the Association,
It gives me great pleasure to welcome you to the Ordinary General Meeting of the Members of the KCA. A brief is given below about Cotton Situation and activities of KCA during our tenure.
LOCAL COTTON SITUATION FOR 2016-17:
The target of cotton production in Pakistan for 2016-17 (in terms of bales of 375 lbs. each) was initially fixed at 14.10 million bales (Punjab 9.50 million bales, Sindh 4.50 million bales, Baluchistan 0.098 million bales and KPK 0.003 million bales) from an area of 3.009 million hectares.
According to the final Report of the PCGA for the year 2016-17, the total arrivals of cotton in ginneries were 10.727 million bales as on 15.04.2017.
According to Pakistan Bureau of Statistics, the exports of cotton during the year 2016-17 (Aug.-July) was recorded about 23,300 M.T, imports of cotton about 466,000 M.T. and Mill consumption at about 16.09 million bales as per Textile Commissioner’s Organization.
COTTON SITUATION FOR 2017-18:
The target of cotton production for 2017-18 was fixed by the Federal Committee on Cotton (FCC) in its meting held on 25.03.2017 at 14.04 million bales (Punjab 10.00 million bales, Sindh 4.00 million bales, Baluchistan 0.038 million bales and KPK 0.002 million bales) on an area of 3.11 million hectare.
According to latest updates, the crop has been sown on an area of 2.753 million hectare (Punjab 2.145 million hectare and Sindh 0.608 million hectare) as on 10.07.2017. The Official Cotton Crop Assessment Committee in their first meeting held on 10.08.2017 assessed the cotton crop size for the year 2017-18 as 12.60 million bales (Punjab 8.80 million bales, Sindh 3.70 million bales and Baluchistan & KPK 0.10 million bales). As per PCGA’s Report, 2.36 million bales of cotton have been arrived in ginneries as on 15th September, 2017.
INTERNATIONAL COTTON SITUATION (2016 -17 AS ON AUGUST 2017):
According to the USDA, the world cotton production in 2016-17 had been increased to 106.48 million bales (480 lbs. each) from 96.761 million bales in 2015-16 due to increase in production in Australia, Brazil, China, India, Pakistan and USA. Production increased in Australia to 4.20 million bales from 2.85 million bales, Brazil to 6.80 million bales from 5.90 million bales, China to 22.75 million bales from 22. 00 million bales, India to 27.00 million bales from 26.40 million bales, Pakistan to 7.70 million bales from 7.00 million bales and USA to 17.17 million bales from 12.88 million bales.
The world cotton consumption slightly increased to 113.63 million bales from 111.255 million bales in 2016-17. The ending global stocks for 2016-17 declined to 89.986 million bales from 97.22 million bales in 2015-16 i.e. 7.24 million bales less than the previous year.
INTERNATIONAL AND NATIONAL PRICE FLUCTUATION:
The New York Cotton Futures latest delivery month recorded at US˘ 74.17 per lb at the beginning of the season on 01.08.2016, increased to the highest level of US˘ 85.32 per lb on 15.05.2017 and recorded as US˘ 70.50 per lb as on 31.07.2017 at the end of Cotton Season. However, during the month of August 2017, the New York Cotton Futures latest delivery month recorded as US˘ 71.47 per lb. as on 30.08.2017.
During the year of 2016-17, the local farmers got fair price for their produce as the Ex-Gin price of cotton recorded between Rs.6,200/- to Rs. 6,800/- per maund on an average basis.
GUESTS AND OTHER ACHIEVEMENTS:
Mr. Jurg Reinhart, President and Mr. Kai Hughes, Managing Director of International Cotton Association visited the KCA on 10.02.2017 and held a meeting with the Executive Committee and senior members of the Cotton Trade and discussed matters of mutual interest.
In the meeting referred to above, the President ICA informed that the main objective of his visit to Pakistan was to increase Membership of the ICA. He further informed that the ICA had offered incentives to increase Membership and invited the cotton traders and industrialists to become member of the ICA. He explained, in detail, the Arbitration facility available at the ICA and informed that the Management of ICA was considering the proposal to reduce the Arbitration Fee suitably for the benefit of South Asian Countries like Pakistan, India and China etc.
IMPORT OF HVI 1000 M1000
On the request of the Karachi Cotton Association and recommendation of the Ministry of Textile Industry, the Board of Administrator of Export Development Fund (EDF), Ministry of Commerce sanctioned Grant/Donation out of Export Development Fund (EDF) for import of One Uster HVI 1000 M 1000 (the Fibre Classification and Analysis System) by the KCA so that much needed cotton testing facility could be provided to the cotton exporters/traders/merchants and textile mills with a view to increase/boost export of cotton and its valuable products and earn much needed foreign exchange for the country.
Upon release of Grant/Donation from the Government, the Karachi Cotton Association had imported One Uster HVI 1000 M 1000 (the Fibre Classification and Analysis System) for installation in the KCA’s Fibre Testing Laboratory.
The KCA intends to get its Fibre Testing Laboratory certified under the ICA Bremen International Laboratory Certification Programme. In this regard, the negotiations with the suppliers/contractors are under way. As soon as the KCA Fibre Testing Laboratory is revamped as per required criteria of the ICA Bremen International Laboratory Classification Programme, the Uster HVI 1000 M 1000, imported by the KCA, would be installed in the KCA’s Fibre Testing Laboratory to provide cotton testing facility to the members of the Association and the cotton trade.
Before closing my speech, I congratulate the new Executive Committee on their election for the year 2017-18 and hope that the new Committee would meet the day to day challenges, problems which might come during their tenure, effectively in the best interest of the Association and cotton trade.
I express my deep thanks to Mr. Humayun Zafar, Senior Vice-Chairman and Mr. Rizwan Iqbal Umer, Vice-Chairman, the KCA for the dedicated and devoted services rendered by him to run the affairs of the Association effectively. I also express my deep thanks to my colleagues on the Executive Committee and members of the Association for providing all assistance,co-operation and guidance during my tenure as Chairman.
I record my appreciations for the efficient and devoted services rendered by Mr. Aftab Alam, Secretary General, Mr. Muhammad Ali, Assistant Secretary (Statistics), Mr. Hassan Haider, Account Officer, Sh. Abdul Qadir Ahmed, Building Administrator / Maintenance Officer and Other Officers and staff of the Association during the year under review.
I also express my thanks to the Press for extending their full co-operation in covering the activities of the Association during my tenure as Chairman, The KCA.
I thank all of you once again.
(Muhammad Atif Dada)
The Karachi Cotton Association