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TRADE

Dec 03 - 09, 2001

TCP receives 16 bids for 10,000 bales of cotton

The Trading Corporation of Pakistan (TCP) has received 16 bids against its season's second tender for export of 10,000 bales of cotton, official sources said.

Contrary to low price quoted in the previous offer of equal quantity of cotton for export sale, the TCP on Wednesday received better price with the highest at 36.06 cents per lb.

The sources said Italian company - Indutech - has made a bid for purchase of 5,000 bales at 36.06 cents per lb. The same company has also made a bid for purchase of another 5,000 bales at 35.56 cents per lb.

The offers will be evaluated by the Price Evaluation Committee of TCP and its decision will be known on Friday, the sources said.

The price committee normally takes into consideration such factors, which become the basis for determining cotton price in the world market.

Consequently, the price committee will take into account the current price at New York cotton futures, the purchase price of TCP and the price level of similar deals made by other buyers.

The TCP on Nov 21, 2001, invited bids for export sale of 10,000 bales of cotton grade box-III staple length 1-1/16" of 2001-2002 crop.

The corporation has so far entered into purchase contracts for over 218,300 bales from Sindh and Punjab out of which 115,100 bales have already arrived in TCP's godowns at Karachi.

Others who participated in Wednesday's bids were Rally Bros of UK, Bering of Hong Kong, ECOM Agro Industrial Cooperation of Switzerland, First Texas Trading Co, Texas, Loades Trading In-Cooperation of UK, Allen Berg of US, L-Trfyfuf, Paul & Rein Sart of Switzerland and Meryon Trading Corporation. However, there is strong resentment in the textile industry against export sales being made by the TCP.

The All Pakistan Textile Mills Association (Aptma) has been opposing such sales alleging that the government was in a way subsidizing its overseas competitors by offering cheap cotton.

Exports from Multan dry port rise

Deputy Collector Customs, Sales Tax and Excise, Headquarters, Abdullah Maalik, on Thursday said that exports from Multan Dryport had gone up to Rs3 billion during the current fiscal.

He said that imports worth Rs569 million were handled by the port during this period and Rs46 million were deposited with the exchequer as export surcharge and customs duty etc.

The deputy collector said that during the current fiscal 2,772 containers were handled at the dryport, adding in the last FY2000-2001, the Multan Dryport handled exports and imports worth Rs9 billion, providing a revenue of Rs190m to the government through export surcharge and customs duty.

Exporters get Irri-6 orders

Pakistan's rice trade was weak on low export demand during the past week, but the market may pick up as Sri Lankan buyers show interest in Irri-6 variety, traders said on Monday.

"The market is likely to wake up in the coming weeks as Sri Lankan buyers are placing orders for Irri-6 variety of rice," said Khalid Ghori, an exporter in Karachi. He said exporters had received orders for 25,000 tons of Irri-6 rice from Sri Lanka, while crop arrivals from Sindh were likely to weigh on domestic prices and help exporters quote a more competitive price.

"We are expecting the new crop arrivals to pick up in December and then the market to slide down," Ghori said. Ghori said fresh arrivals from Punjab would start in December and after that low domestic prices could help exports.

PSO awards HSFO supply contracts

Pakistan State Oil (PSO) has awarded contracts for supply of 2.3 million tons of high sulphur fuel oil (HSFO) for 2002 to three bidders.

The contract has been split among three parties with a view to avoiding reliance on a single party and encourage more suppliers, PSO said in a statement.

Bakri International Energy Limited of Saudi Arabia got 50 per cent supply order while Hascombe Limited of London and Fal Oil Company of Sharjah secured 25 per cent each of the total shipment.

Onion exports

Bright chances existed for increasing onion exports this year as the country has reaped a good crop in Sindh and Balochistan.

President Fruits and Vegetable Processor and Exporters Association (FVPEA) Mateen Siddiqui said that onion was in surplus in both these provinces and was being shipped to Malaysia, Colombo and Dubai.

Palm oil imports may reach 220,000 tons

Pakistan's palm oil imports may reach 220,000 tons a month over the next few months because of the prospect of exports to neighbouring Afghanistan and a reduced cottonseed oil crop, traders said on Monday.

Pakistan normally buys 80,000 tons of palm oil a month from the world's largest producers, Malaysia and Indonesia.

"We expect strong demand to continue until March. When things are settling down, Pakistan will be exporting a lot of oil to Afghanistan," said one trader in Malaysia. "About 70 per cent of the oil shipped to Pakistan will come from Malaysia and I expect imports to reach 220,000 tons in November and December each," he added.

EU agrees to cut tariffs, raise textile quotas

The European Union and Pakistan government signed an agreement on Saturday to reinforce political cooperation. The two sides also signed a memorandum of understanding (MoU) for preferential trade package, envisaging a reduction in tariffs and increase in Pakistan's textile quotas.

"The European Union and Pakistan warmly welcome the signature of a cooperation agreement that will substantially contribute to strengthening their relationship," said a joint statement issued after meeting of President Gen Pervez Musharraf with Belgian Prime Minister and European Union President Guy Verhofstadt and European Commission President Romano Prodi.

Overshipments

Textile exports worth $10 million are stuck up in America because of the US Customs refusal to accept 'overshipments' allowed by Pakistan authorities.