THE KARACHI COTTON ASSOCIATION (The Cotton Exchange, I.I. Chundrigar Road, Karachi)

THE KARACHI COTTON ASSOCIATION (The Cotton Exchange, I.I. Chundrigar Road, Karachi) EXECUTIVE COMMITTEES REPORT COVERING ACTIVITIES OF THE ASSOCIATION FOR THE YEAR 2016-17 AND AUDITED ACCOUNTS OF THE ASSOCIATION FOR THE YEAR ENDED JUNE 30, 2017 The Executive Committee is pleased to present their Annual Report covering activities of The Karachi Cotton Association for the year 2016-17 and Audited Accounts for the financial year ended on June 30, 2017. EXECUTIVE COMMITTEE S REPORT: Before discussing the local cotton situation, a brief review of the world cotton situation is presented for the year 2016-17 alongwith its prospects for the year 2017-18. WORLD COTTON SITUATION (2016-17): 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. 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. However, the New York Cotton Futures latest delivery month recorded as US 70.50 per lb as on 31.07.2017. WORLD COTTON SITUATION ( 2017-18): According to the USDA, world cotton production for 2017-18 is estimated to increase to 117.31 million bales (bale of 480 lbs.) from 106.48 million bales in 2016-17. Major increase in cotton production is projected in Australia, Brazil, India, China, Pakistan and USA where production is estimated to increase to 4.80, 7.00, 24.50, 29.00, 9.15 and 20.54 million bales from 4.20, 6.80, 22.75, 27.00, 7.70 and 17.17 million bales respectively. World cotton consumption is estimated to increase to 117.40 million bales in 2017-18 against 113.63 million bales of actual consumption in 2016-17. In China, the cotton consumption is estimated to increase to 38.00 million bales in 2017-18 from 37.50 million bales in 2016-17. World exports for 2017-18 are estimated at 37.17 million bales as against 37.39 million bales in 2016-17.

-: 2 :- TARGET OF COTTON PRODUCTION IN PAKISTAN (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 as on 15.04.2017 were 10.727 million bales. COTTON PRODUCTION TARGET IN PAKISTAN (2017-18): The target of cotton production for 2017-18 was fixed by the Government 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). The provinces-wise targets of area and production fixed for 2017-18 are as follows :- COTTON AREA AND PRODUCTION TARGETS (2017-18) S.No. Province Area Production ( Million hectares) (Million bales) 1. Punjab 2.42 10.00 2. Sindh 0.65 4.00 3. KPK 0.001 0.002 4. Baluchistan 0.038 0.038 Total: 3.11 14.04 Source: PCCC PCGA GINNING FIGURES (2016-17): As per final report of the Pakistan Cotton Ginners Association (PCGA), arrivals of seed cotton, (Phutti) in ginneries crop 2016-17 as on April 15, 2017 were 10.727 million bales as compared to 9.768 million bales during 2015-16 as shown below:- ARRIVALS OF SEED COTTON IN GINNERIES In b a l e s (170 kg) Province 2016-17 2015-16 (as on 15.04.2017) (as on 15.04.2016) % change over 2015-16 (Final Report) (Final Report) (Final Report) Punjab 6,940,071 6,002,406 (+) 15.62 Sindh _3,787,111 3,766,037 (+) 0.56 Total:- 10,727,182 9,768,443 (+) 9.81

-: 3 :- SEED COTTON PRICES: The monthly average prices of seed cotton as well as lint during 2016-17 are as follows:- AVERAGE MARKET PRICE IN RS. PER 40 KGS. OF SEED COTTON DURING 2016-17 S.No. Month / Market Hyderabad RahimYar Kham 1. July, 2016 3154.00 3358.00 2. August, 2016 3364.00 3361.00 3. September, 2016 2985.00 3049.00 4. October, 2016 2954.00 3176.00 5. November, 2016 2400.00 3230.00 6. December, 2016 --- 3413.00 7. January, 2017 --- 3526.00 8. February, 2017 --- 3744.00 9. March, 2017 --- 3752.00 2971.40 3401.00 Source: PCCC The following table shows month-wise average spot rates in rupees per maund of 37.324 kgs. at the Karachi Cotton Market for the season 2016-17 (Aug.-July):- MONTHLY AVERAGE OF THE KCA OFFICIAL SPOT RATES (EX-GIN PRICE) FOR BASE GRADE 3 (THREE), STAPLE LENGTH 1-1/16 MIC VALUE BETWEEN 3.8 TO 4.9 NCL. (In Rs. per Maund) S.No. Month Monthly Average Ex-gin 1. August, 2016 6,608.00 2. September, 2016 6,070.00 3. October, 2016 5,983.00 4. November, 2016 6,048.00 5. December, 2016 6,260.00 6. January, 2017 6,425.00 7. February, 2017 6,675.00 8. March, 2017 6,760.00 9. April, 2017 6,732.00 10. May, 2017 6,750.00 11. June, 2017 6,720.00 12. July, 2017 6,217.00 Yearly Average based 6,437.33 on monthly averages

LOCAL MILL CONSUMPTION FOR 2015-16: -: 4 :- The mill consumption of raw cotton during the year 2016-17 (Aug.-July) as reported by the Textile Commissioners Organization was 16.09 million bales. The following table shows month-wise mill consumption of cotton from Aug., 2016 to July, 2017:- MILL CONSUMPTION OF COTTON FOR 2016-17 (AUG.,-JULY,) S.No. Month (Bales of 375 lbs.) 1. August, 2016 1,321,694 2. September, 2016 1,322,647 3. October, 2016 1,327,753 4. November, 2016 1,329,841 5. December, 2016 1,336,147 6. January, 2017 1,340,235 7. February, 2017 1,327,841 8. March, 2017 1,367,918 9. April, 2017 1,358,859 10. May, 2017 1,362,094 11. June, 2017 1,361,500 12. July, 2017 1,335,147 Total (Aug., 16 - July, 17) 16,091,676 Source: Textile Commissioner s Organization DISPOSAL OF COTTON IN 2016-17: According to the PCGA s final report, the arrivals of cotton in the ginneries (Crop 2016-17) as on April 15, 2017, were recorded as 10.727 million bales as compared to 9.768 million bales against final crop arrival for 2015-16. The total sales of 2016-17 crop to the mills, exporters and the TCP, as on April 15, 2017, were 10.461 million bales compared to 9.418 million bales as recorded on April 15, 2016 which will be seen from the following table:- FINAL POSITION OF GINNED/PRESSED BALES AND SALES AS ON 15.04.2017 / 15.04.2016 (In Bales) 2016-17 crop 2015-16 crop (as on 15.04.2017) (as on 15.04.2016) (Final Report) (Final Report) No. of bales ginned 10,725,980 9,764,552 and pressed Total Sales 10,259,229 9,418,667 - Sales to Mills 10,259,229 9,056,526 - Sales to TCP ---- ---- - Sales to exporters 202,356 362,141 - Stock of unsold and 265,597 349,776 unginned bales.

REVIEW OF COTTON CROP 2016-17: -: 5 :- TARGET FOR AREA AND PRODUCTION OF COTTON CROP 2016-17 S.No. Province Area (million hectares) Production (million bales) 1 Punjab 2.310 9.500 2 Sindh 0.660 4.500 3 Khyber Pakhtunkhwa 0.001 0.003 4 Baluchistan 0.038 0.098 Total of Pakistan 3.009 14.101 Source: Federal Committee on Cotton (FCC) meeting held on 23.02.2016. SOWING POSITION OF COTTON CROP Province Target 2016-17 (Million Hectares) Area Sown % Change Over 2016-17 2015-16 Target Last Year Punjab 2.310 1.776 2.243 76.88 (-) 20.82 Sindh 0.660 0.636 0.621 96.36 (+) 2.41 Pakistan 2.970 2.412 2.864 81.21 (-) 15.78 Source: Provincial Crop Reporting Services Departments. Province ASSESSMENT OF COTTON CROP 2016-17 Expected Production (Million Bales) First Cotton Crop Second Cotton Crop Assessment Assessment (06.09.2016) (06.10.2016) (Bales = 170 Kg) Third Cotton Crop Assessment (05.12.2016) Punjab 7.500 7.300 6.903 Sindh 3.733 3.700 3.600 Khyber Pakhtunkhwa 0.001 0.001 0.001 Baluchistan 0.038 0.038 0.038 Pakistan 11.272 11.039 10.542 Source: Cotton Crop Assessment. REASONS OF PRODUCTION INCREASE IN 2016-17 2.4 percent increase of area in Sindh. Generally less rain fall. Less pest attack. Excellent fruiting pattern. Fairly good management practices. At least one more picking in 2016-17 as compared to 2015-16 in cotton growing districts specially Lodhran, Multan, Khanewal, Bahawalpur, Rahim Yar Khan & D.G Khan.

-: 6 :- REVIEW OF COTTON CROP (2017-18): According to latest updates, issued by Pakistan Central Cotton Committee, the Cotton crop 2017-18 is progressing well both in Sindh and the Punjab. However, incidence of white fly is increasing in Punjab and its infestation above economic threshold level has increased as compared to previous weeks. Simultaneously, incidence of pink boll worm and army worm is also increasing above ETL level in most of the cotton area, in Punjab. While in Sindh, sucking pest is decreasing as crop is progressing to maturity. However, patches of army worm have been reported. The incidence reported is below economic threshold level. Prices of seed cotton remained between Rs.2800 - Rs.3200 per 40 Kgs. TARGETS FOR AREA AND PRODUCTION FOR THE COTTON CROP YEAR 2017-18 S.No. Province Area (million hectares) Production (million bales) 1 Punjab 2.42 10.500 2 Sindh 0.65 4.00 3 Khyber Pakhtunkhwa 0.001 0.002 4 Baluchistan 0.038 0.038 Total of Pakistan 3.11 14.04 Source: Federal Committee on Cotton (FCC) meeting held on 25.03.2017. SOWING POSITION OF COTTON CROP 2017-18 AS ON 10.07.2017) Province Target 2017-18 (Million Hectares) Area Sown % Change Over 2017-18 2016-17 Target Last Year Punjab 2.42 2.145 1.780 88.6% (+) 20.5 Sindh 0.65 0.608 0.636 94.0% (-) 4.4 Total 3.11 2.753 2.416 88.52% (+) 13.95 Source: Provincial Crop Reporting Services Departments.

-: 7 :- FIRST ESTIMATE OF COTTON CROP 2017-18 Province ( Bales = 170 Kg) Expected Production (million bales) Punjab 8.80 Sindh 3.70 Khyber PakhtunKhwa & Balochistan 0.10 Pakistan 12.60 EXPORT SALES OF 2016-17 CROP: In the marketing year 2016-17 (August-July), the Export Sales of Cotton registered with the Trade Development Authority of Pakistan (TDAP) were 143,533 bales as compared to 339,877 bales registered in the corresponding period last year. IMPORTS: The imports of cotton during the year 2016-17 were recorded as 466,000 M.T. as compared to 490,000 M.T. recorded during corresponding period last year as per data released by Pakistan Bureau of Statistics, Government of Pakistan. This helped in meeting the requirements of domestic mills. COTTON CROP ASSESSMENT COMMITTEE MEETINGS FOR 2016-17 AND 2017-18 CROPS: The Federal Government constituted a Committee on Cotton Crop Assessment for the year 2016-17 and 2017-18 to assess the size of the Cotton Crop on a realistic footing so as to make available factual estimates of the Cotton Crop and to avoid confusion. Chairman, the KCA was also included as one of the members of the Committee. (i) COTTON SEASON 2016-17: 1 ST MEETING OF COTTON CROP ASSESSMENT COMMITTEE HELD ON 06.09.2016 AT ISLAMABAD. The 1 st meeting of the Cotton Crop Assessment Committee was held on 06.09.2016 in the Committee Room of Ministry of Textile Industry, Islamabad, under the Chairmanship of Mr. Hassan Iqbal, Secretary, Ministry of Textile Industry, Government of Pakistan and has been covered in the last year s Executive Report. 2 ND MEETING OF COTTON CROP ASSESSMENT COMMITTEE HELD ON 06.10.2016 AT ISLAMABAD. The 2 nd meeting of the Cotton Crop Assessment Committee was held on 06.10.2016 in the Committee Room of Ministry of Textile Industry, Islamabad, under the Chairmanship of Mr. Hassan Iqbal, Secretary, Ministry of Textile Industry, Government of Pakistan.

-: 8 :- Besides, representatives of Pakistan Central Cotton Committee (PCCC), Pakistan Cotton Standards Institute (PCSI), Trading Corporation of Pakistan (TCP), Department of Plant Protection, Cotton Growers, APTMA, PCGA, Representative of Provincial Governments, Mr. Muhammad Atif Dada, Chairman, the KCA attended the meeting referred to above. Secretary, Ministry of Textile Industry welcomed the participants and appreciated the stakeholders interest and participation in the process of cotton crop assessment and highlighted the importance & objectives of the meeting. Dr. Khalid Abdullah, Cotton Commissioner, gave a presentation regarding targets, area sown and pest status and also highlighted the reasons of reduction in area and prices of seed cotton and raw cotton. Chairman, Pakistan Cotton Ginners Association briefed the Committee and said that crop stand is good and specially mentioned the good crop in river belt (Katcha area) of Sindh and Punjab. Further, he added that ban on rice cultivation in Dherki and Ghotki, area under cotton has increased in these districts. He particularly mentioned that the arrival in Sindh is good despite the over all arrival of Pakistan. Although that is 15% short of the last year s crop. Chairman, the PCGA was of the view that country will achieve 12.00 million bales. Some members endorsed the view point of Chairman PCGA and mentioned that the input cost has been reduced significantly and growers profit increased due to good local prices in the country. Mr. Muhammad Atif Dada, Chairman, the KCA was also optimistic about the crop size and gave his opinion about the crop volume as 11.5 million bales. Director, Central Cotton Research Institute (CCRI), Multan briefed about the training programs conducted by CCRI in imparting awareness to the growers and informed the Committee about white fly and PBW damage especially in Khanewal and Mian Chunnu Districts. He also informed about the early season heat wave resulted in boll shedding, but the current crop condition seems to compensate the early season damage. Director, CCRI Sakrand told the house about satisfactory crop condition in the lower and upper Sindh. He informed the house that the mild weather conditions favours early picking and good yields in Sindh province.

-: 9 :- After considering the arguments and in consultation with other stakeholders, the chair asked to consider 7.3 million bales for Punjab which was a very reasonable estimate for the Punjab province. The house unanimously agreed to assess the following cotton crop size of 170 kg bales weight, during the year 2016-17 as below: Province Expected Production Million Bales (170 kg) Punjab 7.300 Sindh 3.700 Khyber Pakhtunkhwa 0.001 Baluchistan 0.038 Pakistan 11.039 3 RD MEETING OF COTTON CROP ASSESSMENT COMMITTEE HELD ON 05.12.2016 AT ISLAMABAD. The 3 rd meeting of the Cotton Crop Assessment Committee was held on 05.12.2016 in the Committee Room of the Ministry of Textile Industry, Islamabad, under the Chairmanship of Mr. Hassan Iqbal, Secretary, Ministry of Textile Industry, Government of Pakistan. Representatives of Pakistan Central Cotton Committee (PCCC), Pakistan Cotton Standards Institute (PCSI), Trading Corporation of Pakistan (TCP), Provincial Research and Extension Officials, APTMA, PCGA, Progressive farmers attended the meeting. Mr. Muhammad Atif Dada, Chairman, the KCA also attended the meeting referred to above on behalf of the KCA. After welcome address by the Secretary, Dr. Khalid Abdullah, Cotton Commissioner, presented an overview of cotton production in the country. He briefed in detail the house that cotton crop was sown on an area of 2.412 million hectares against the target of 2.971 million hectares. The major decline (20%) in cotton acreage was witnessed in Punjab province. He also informed the house about trainings conducted and TeleCotton (SMS service) of PCCC. He stated that cotton prices during current year remained high, and also informed that 9,778,451 bales (61,58,870 in Punjab and 36,19,581 bales in Sindh) have arrived so far, which is 13% higher than that of last year.

-: 10 :- He further stated that 88% cotton arrived into ginneries by 1 st December, historically which worked out close to 11.1 million bales which is equivalent to 2 nd estimate earlier made. While summarizing the presentation, he stated that the positive factors during cotton season 2016-17 were (i) increase 2.4% cotton area in Sindh, (ii) less rainfall, (iii) blowing of south western dry wind (locally called Dukkhan) which keeps away pests from cotton crop, (iv) excellent fruiting pattern and (v) fairly good seed cotton price. Whereas, negative factors include decline of 20% cotton area in Punjab, high temperatures, leaf-reddening problem etc. The Director, Crop Reporting Services Punjab briefed the Committee that cotton production is estimated to 6.93 million bales. He elaborated the details of survey and sampling technique for assessing the crop size like plants population, number of bolls and boll weight etc. He further informed the house that the department has its presence at grass rood level and employed an efficient system of estimation. Director, Cotton Research Institute, Punjab informed the Committee that the normal cotton estimation parameters included plant population, boll weight and number of bolls per plant. In his opinion, 7.7 million bales would be produced by the Punjab province which was based on historical trend. The Director, Crop Reporting Sindh informed the house that cotton was sown on an area of 637,636 hectares which will yield cotton production of 3.60 million bales as per second estimate for Sindh province. The Director, CCRI Sakrand was of the view that cotton insect problem was low this year, overall Pink bollworm incidence was less than last year, while cotton whitefly was present in some area but remained under control. He informed the Committee that crop condition was good and re-enforced the estimated figures. Representative of Growers from Punjab congratulated the performance of the MinTex for successfully holding the ICAC conference in Islamabad. He expressed his views that we have to assess the cotton crop size and plan for the next crop season. While briefing, he informed that out of total number of cotton growing districts, Punjab (19) and Sindh (06) remained top cotton producing districts during the current year. He stated that cotton sown on an area of 4.37 million acres and production arrived 6.168 million bales in Punjab.

-: 11 :- Mr. Muhammad Atif Dada, Chairman, the KCA informed the Committee that as per government estimate, the cotton production in Punjab will remain at 7.0 million bales and in Sindh it would be 3.6 million bales which will come to 10.6 million at national level. However, the KCA estimated total crop size of 11.0 million bales in the country for the current season. Secretary, Ministry of Textile Industry informed the Committee that many factors are added for yield estimation including the historical perceptive. He also stressed the ginning industry and all stakeholders, to use standard bale size of 170 kg each and all calculations may be made as per standard bale size. He asked for putting this issue in next agenda of the meeting for packing and standard bale size. He further directed to review bales size in various countries as well. Secretary, MinTex also directed Dr. Khalid Abdullah, Cotton Commissioner to review in detail reasons/causes of difference of production setting from higher target to lowering down estimates in every meeting. He directed to prepare a report at the end of season. He further directed to develop plan for area expansion and increasing yield per acre in consultation with researchers, experts and stakeholders so that cotton productivity could be enhanced. Representatives of the Provincial Government explained the methodology for crop assessment and informed the house about the crop estimate which were unanimously agreed by the Committee, as under:- Province Expected Production Million Bales of 170 kg. each bale Punjab 6.903 Sindh 3.600 Baluchistan 0.038 Khyber Pakhtunkhwa 0.001 Pakistan 10.542

-: 12 :- (ii) COTTON SEASON 2017-18: 1 ST MEETING OF COTTON CROP ASSESSMENT COMMITTEE HELD ON 10.08.2017 AT ISLAMABAD. The 1 st meeting of the Cotton Crop Assessment Committee was held on 10.08.2017 in the Committee Room of Ministry of Textile Industry, Islamabad, under the Chairmanship of Mr. Hassan Iqbal, Secretary, Ministry of Textile Industry. Mr. Rizwan Iqbal Umer, Vice chairman, the KCA attended the meeting on behalf of the KCA. Following Press Release were issued after the meeting. The 1 st meeting of the Cotton Crop Assessment Committee (CCAC) was held under the chairmanship of Mr. Hassan Iqbal, Secretary, Ministry of Commerce and Textile, Islamabad. Representatives from Provincial Governments, Pakistan Central Cotton Committee, Pakistan Cotton Standards Institute, All Pakistan Textile Mills Association, Pakistan Cotton Ginners Associations, Karachi Cotton Association, Pakistan Oil Mills Association, Trading Corporation of Pakistan, and progressive cotton growers attended the meeting. Dr. Khalid Abdullah, Cotton Commissioner apprised the house that cotton crop target for the year 2017 was set at 3.11 million hectares (7.68 million acres) with production of 14.04 million bales. However, 13.9% higher cotton sowing of 2.753 million hectares (6.803 million acres) was achieved during the current season with major increase of 20.5% in the Punjab province (5.300 million acres). He stated that the departments remained proactive in training of farmers for the management of Pink bollworm as well as leaf burning syndrome. Moreover, cotton prices are also encouraging for the farmers. The representative of Punjab province stated that the second cotton crop survey report will be released by 31 st August and the accurate figures of area will be presented. However, he stated, that the parameters for production i.e., plant population, bolls per plant and boll weight are more than that of last year. The representative from Sindh province stated that cotton crop condition is good and second picking has also been obtained in Lower Sindh and expected that the targets for production will be achieved.

-: 13 :- The representative from Khyber Pakhtunkhawa province stated that around 1800 acres of cotton crop has been cultivated in D.I. Khan. He stated that government should support the farmers for provision of quality seed, fertilizer and pesticide at subsidized rates and procurement arrangements may also be made. Mr. Hassan Iqbal, Secretary, Ministry of Textile Industry stated that government is taking all efforts for boosting cotton production by providing equal support measures for all stakeholders. He stated that the Ministry of Textile Industry has taken measures for the establishment of National Textile University in all the four provinces for technology upgradation and skill development in the sector. Moreover, the Ministry has also requested the Government of Khyber Pakhtunkhwa for establishing a Cotton Ginning Factory in D.I. Khan at earliest for facilitating farmers in cotton procurement. Upon thorough discussions, the house unanimously agreed to assess the cotton crop size for the year 2017 as 12.6 million bales, as detailed below: Province Production (Mil. Bales of 170 kgs each) Punjab 8.80 Sindh 3.70 Khyber Pakhtunkhwa and Balochistan 0.10 Pakistan 12.60 84 TH MEETING OF PCCC GOVERNING COMMITTEE HELD ON 21.12.2016 AT ISLAMABAD: 84 th meeting of PCCC Governing Committee was held on 21.12.2016 at Islamabad, presided by Mr. Sikander Hayat Khan Bosan, Federal Minister for National Food Security and Research. Mr. Rizwan Iqbal Umer, Vice-Chairman, the KCA attended the meeting. Federal Minister welcomed the participants and informed the house that the Prime Minister of Pakistan has deputed him to chair the meetings of PCCC. He again showed his concerns over non-participation of the Secretary Agriculture Punjab and Sindh. He directed the Secretary, MinTex to send a letter to the Chief Ministers of Punjab and Sindh with his signatures on the issue. He also said that the participation of all stake holders specially the provincial governments will strengthen this august forum.

-: 14 :- He further informed the house that by the Grace of Almighty ALLAH the production of cotton has increased this year although the area under cultivation was less. This increase in production will only be possible due to the reason that the farmers had got good prices of their production. He also informed the committee that the area of cotton in three main cotton producing districts of Punjab i.e. Vehari, Lodhran and Khanewal has drastically decreased but he is hopeful that due to better prices to the farmers of these districts will definitely return to the cotton crop next year as the farmers are still managing their cotton crop due to good prices. The Federal Minister informed the house that Plant Breeder s Right Act has been approved with long struggle and will affect the future agriculture. He showed his concerns over the promulgation of Provincial Seed and Plant Protection Acts. He further informed the house that in future the cotton seed will be available with 75% or more germination percentage. He requested the private sector i.e. APTMA, PCGA, KCA to support cotton farmers for the technology adoption and good cotton crop production. He further added that small holdings have increased to over 97% now, who need support and awareness. Mr. Sikandar Hayat Khan Bosan, the Federal Minister also discussed about the fate of ad-hoc employees who had been working for years in PCCC. He desired that the Secretary, MinTex and VP, PCCC to look into the matter and may formulate a policy to regularize these ad-hoc employees. It was assured that the issue would be resolved under a legal cover. Mr. Hassan Iqbal, Secretary, Ministry of Textile Industry in his remarks thanked the Federal Minister for sparing his time to chair this meeting and giving his valuable suggestions for improvements and assured the Federal Minister that all disputed matters will be settled with dialogue and under his guidance. Mr. Hassan Iqbal informed the house that the restructuring of PCCC will be made in consultation with all stakeholders to make it more effective organization. The Secretary, MinTex further informed the house that he has visited the PCCC Headquarters, CCRI Multan and CRS D.I. Khan and showed his satisfaction on the working of these units with some reservation and areas of improvement. He also informed that we should focus on the increase in yield and make it a competitive one.

-: 15 :- Dr. Khalid Abdullah, Vice-President, PCCC invited the attention of the house towards the regular agenda of the meeting. After lengthy discussion on each item of the Agenda, the following decisions were taken: i) Formulate a policy to regularize the services of adhoc employees working in PCCC since last many years. ii) Steps be taken to motivate farmers of D.I. Khan/KPK for increasing area under cotton. iii) Implementation of remaining decisions of 83 rd meeting i.e. (a) Letters to Punjab and Sindh governments, (b) Disciplinary action and (c) Inclusion of technical experts in the Selection Committee be speed up. iv) Services of an expert be hired to review the new rules. v) Sindh government be approached for allocation of 200 acres to CCRI Sakrand for seed multiplication purposes. vi) Constitute a Committee to figure out the who bears burden of the Cotton Cess. vii) Duly vetted/final staff service rules be presented in the next meeting. viii) Appointments on critical/scientific posts be made after approval of recruitment rules. ix) TOR and AD for external audit were approved. x) Creation of new disciplines in PCCC was approved. xi) Revised advisement of CEO, in terms of Qualification and pay package for all position were approved and allowed for publication. xii) Letters to Chief Ministers Punjab and Sindh be sent with the signatures of the chair regarding non-participation of the Secretaries of Agriculture of both the Provinces in the meetings of PCCC. xiii) Meeting of Federal Minister be arranged with APTMA and other stakeholders to discuss various issues. xiv) Special funds for the construction of new building of CCRI Sakrand were released. xv) Creation of a new CRS at D.G. Khan or Rajanpur with collaboration of Punjab Government or PCCC independently be worked out. xvi) Matter regarding payment of gratuity to PCCC employees be referred to Finance Division for guidance.

-: 16 :- xvii) Approval of creation of Pension fund. xviii) Proposed restructuring plan of PCCC be circulated among the members for their input and then submitted in the next meeting of PCCC. 48 TH MEETING OF THE PUNJAB SEED COUNCIL (PSC), HELD ON FRIDAY 6 TH MARCH, 2017 AT LAHORE: 48 th Meeting of the Punjab Seed Council (PSC) was chaired by Mr. Naeem Akhtar Khan Bhabha, Minister for Agriculture, Punjab. Mr. Humayun Zafar, Senior Vice-Chairman, the KCA attended the meeting on behalf of the KCA alongwith other observers, crop breeders and members etc.. Dr. Ghazanfar Ali Khan, Additional Secretary (Planning), Government of Punjab, Agriculture Department on behalf of Secretary Agriculture/ MD PSC (Secretary Punjab Seed Council), presented the Minutes of the 47 th Meeting which were unanimously confirmed by the house. He briefed the Committee about the process and SOPs for approval of new crop varieties/lines and then apprised the house about the detail of Agenda that in this meeting, in total 43 new candidate lines/varieties of different crops which were recommended in the Experts Sub Committee of Punjab Seed Council would be presented by the respective breeders to consider for approval by the Council. Mr. Naeem Akhtar Khan Bhabha, Minister for Agriculture, Punjab/Chairman Punjab Seed Council in his address remarked that the Government of the Punjab has been working systematically and proactively to uplift and strengthen agriculture sector in Punjab province in shape of provision of plenty of crop inputs to the farmers on subsidized rates. A transparent One Windows operation by Smart Card is being adopted to help facilitate growing community. All steps to promote local seed industry and giving more importance to new technology in agriculture is being taken steadfastly according to the vision of CM Punjab. The Additional Secretary (Planning), Agriculture Department Punjab under permission of the chair asked the breeders to present the cases of their candidate varieties for consideration and decision by the House.

-: 17 :- The following 4 (four) cases of Bt. Cotton varieties were presented alongwith relevant technical data, agronomic studies, trial results, characteristics and observations of the ESC with respect to the candidate varieties: i) Bt. Cotton variety FH-326 of Cotton Research Station, AARI, Faisalabad. ii) Bt. Cotton variety NIAB-878 B of Nuclear Institute for Agriculture & Biology (NIAB), Faisalabad. iii) Bt. Cotton variety Cyto-179 of CCRI, Multan. iv) Bt. Cotton variety Weal AG SHAHKAR of M/s Weal AG Corporation, Allah Din Group of Companies, Multan. Based on the recommendations of the ESC, in house deliberations the Council approved conditionally the following candidate varieties subject to the issue of classification/notification by the National Biosafety Committee, EPA, Ministry of Climate Change, Islamabad, reflecting the general waiver of Commercialization Certificate for Mon 531 event (Cry 1AC gene) on the basis of decision at para 7(a) of minutes of 14 th meeting of NBC held on March 31, 2016 & April 22, 2016. S/N Variety Test Station GOT Staple Fineness Uniformity Strength (%) Length (mm) (ug/inch) U.R. (%) U.I. (%) G/Tex 1 Bt. Cotton (FH-326) PSC, Khanewal 38.8 29.25 4.28 48.59 82.30 30.30 2 Bt. Cotton (NIAB- 878B) 3 Bt. Cotton (Cyto-179) PSC, Khanewal 40.4 29.31 4.61 48.71 82.75 26.80 PSC, Khanewal 40.4 28.82 4.32 48.59 81.95 27.40 4 B. Cotton (Weal AG SHAHKAR) PSC, Khanewal 40.7 28.26 4.68 48.59 61.70 28.75 The following cotton varieties were deferred in the meeting referred to above:- i) Non Bt. Cotton Variety NIAB-414 (FiberMax), Nuclear Institute for Agriculture and Biology (NIAB), Faisalabad. ii) B. Cotton variety FH-Noor of Cotton Research Institute, Faisalabad.

-: 18 :- APPROVAL CASES OF 5 Bt. COTTON CANDIDATE VARIETIES DEFERRED IN 46 TH AND 47 TH MEETINGS OF PUNJAB SEED COUNCIL DUE TO NON PROVISION OF NBC COMMERCIALIZATION CERTIFICATE. It was apprised that the following (05) nos. Bt. Candidate cotton varieties were recommended in the 71 st meeting of Expert Sub Committee held on 09.03.2015 which were also deferred due to non-provision of Commercialization Certificate by National Biosafety Committee (NBC). Again, the cases of these candidate varieties were placed before Punjab Seed Council in its 47th meeting held on 15.07.2016. The Council in its 47 th meeting decided to defer the cases of aforementioned (5) candidate Bt. Cotton varieties alongwith request to the Managing Director PSC/ Secretary Punjab Seed Council to send a letter for the issuance of clarification/ notification by National Biosafety Committee, EPA, Ministry of Climate Change, Islamabad, reflecting the general waiver of the requirement of Commercialization Certificate for Mon 531 event (Cry 1AC gene) on the basis of decision at Para 7(a) of minutes of 14 th meeting of NBC held on March 31, 2016 & April 22, 2016. Sr.No. Candidate Line/Var. of Bt. Cotton 1 Bt. CIM-600 CCRI, Multan 2 Bt-Cyto-177 CCRI, Multan 3 IR-NIBGE-4 NIBGE, Faisalabad 4 IR-NIBGE-6 NIBGE, Faisalabad Breeding Agency/Institute 5 TARZEN-3 M/s Four Brothers Group of Pakistan, Lahore VISIT OF DIGNITARIES TO THE KCA: VISIT OF MR. JURG REINHART, PRESIDENT, INTERNATIONAL COTTON ASSOCIATION TO THE KCA ON 10.02.2017: 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 to discuss matters relating to safe trading practices and arbitration etc. Mr. Muhammad Atif Dada, Chairman, the KCA presented the address of welcome and thanked the worthy President and Managing Director of the ICA for visiting the KCA despite their busy schedule in Karachi and highlighted the role and function of the KCA in regulating cotton marketing and trading in Pakistan.

-: 19 :- Mr. Muhammad Atif Dada, Chairman, the KCA introduced the Executive Committee and senior members of the cotton trade to the ICA leadership and said that Mr. Jurg Reinhart, President, the ICA began his trading career with Marc Rich AG and Phibro Energy in Switzerland etc. After that, he has joined his family company Paul Reinhart AG, founded in 1788 and headquartered in Winterthur, Switzerland, in 1989 and served in various capacities and positions. Before joining the Board of Management of Paul Reinhart AG in 1995, where he holds the positions of Managing Director, as well as President of the Board of Directors. Mr. Jurg also served on the Board of the Chamber of Commerce in Winterthur and was President of the Bremer Baumwollborse from 2001 to 2004 of which he is still a board member. He was appointed to the ICA Board of Directors in 2010. Chairman, the KCA explained the role, functions and performance of the KCA and said that the KCA has the privilege of fixation of Spot Rates of Cotton on daily basis, which is the base for entire cotton trading activities in Pakistan, no other existing Association in Pakistan has such national and commercial responsibility. The KCA has an inherent and transparent mechanism of fixation of daily Spot Rates which reduces speculative trade and credit risk for the borrowers. It also safeguards the interest of the financial institutions while advancing funds against cotton. Chairman further said that the KCA also used to perform Hedge Trading in Cotton since 1934. Following the nationalization of export trade and establishment of Cotton Export Corporation of Pakistan in the Public Sector, the Hedge Trading in cotton was suspended by an administrative order of the Government of Pakistan in 1976. The KCA has a facility of arbitration under By-Laws of the Association to resolve any dispute between Buyer & Seller. It has also a Fiber Testing Laboratory, equipped with High Volume Instrument (HVI) Spectrum, to provide necessary cotton testing facility to members of the Association and the Cotton Trade. Chairman, the KCA further briefed the house that the exports of cotton from Pakistan takes place on the basis of Export Types known internationally as Export Types 1505, 1503, 1467, Afzal, Alaka, Adnas, 1210. The KCA has a privilege to prepare and supply of Export Type Rolls to its members and the Cotton Trade.

-: 20 :- Mr. Jurg Reinhart, President, the ICA briefed about the activities and initiatives taken by them to promote and explore avenues for strengthening relationship between the two Associations in enhancing the trade and arbitration in the world and briefed about latest and updated development at the ICA.. Mr. Kai Hughes, Managing Director, ICA also explained about purpose of visiting to Pakistan, development taking place in the global world, the cotton trading, arbitration and membership matters of the ICA etc. The KCA also hosted a sumptuous dinner in the honour of the ICA leadership and the Executive Committee and senior members of the Cotton Trade. GOVERNMENT NOMINEES ON THE EXECUTIVE COMMITTEE OF THE KCA FOR THE YEAR 2016-17: As per the requirement of the KCA s Executive Committee, the following officials from the respective Ministries were nominated on the Executive Committee of the KCA for the year 2016-17:- i) Ministry of Commerce, Government of Pakistan, Islamabad vide their letter dated 11.11.2016 nominated Mr. Abdul Karim Memon, Director Textile & Clothing Division, Trade Development Authority of Pakistan, Karachi to represent the Ministry of Commerce on the Executive Committee of the KCA as member for the year 2016-17. ii) Ministry of Textile Industry, Government of Pakistan, Islamabad vide their letter dated 11.01.2017 nominated Dr. Khalid Abdullah, Cotton Commissioner to represent the Ministry on the Executive Committee of the KCA for the year 2016-17. iii) The Finance Division, (External Finance Wing), Government of Pakistan, Islamabad vide their letter dated 07.11.2016 nominated Mrs. Naheed Ishaq, Deputy Secretary, (EF- Program) to represent them on the Executive Committee of the KCA for the year 2016-17. COTTON EXCHANGE DISPENSARY: The Cotton Exchange Dispensary provided medical facilities to the members/ Licensed Cotton Brokers of the KCA including their staff members and staff of the Association and their family members. During the year July, 2016 to June, 2017, a total No. of 3,004 patients attended the Cotton Exchange Dispensary as compared to 3,423 patients attended last year and 7,907 units were dispensed to patients as against 8,304 units dispensed during the last year. Blood Sugar testing facility has also been provided to the patients visiting the Cotton Exchange Dispensary. During the year 2016-17, 159 patients availed Blood Sugar testing facility from the Cotton Exchange Dispensary. PROGRESS OF HVI SPECTRUM EQUIPPED IN THE KCA LAB. The KCA provided facility for testing of cotton through Uster HVI Spectrum mostly to exporters at a concessional rate to earn more foreign exchange as during the year 2016-17 (Aug., to July), 3193 samples were tested, whereas 4,516 samples were tested during the corresponding period last year i.e. August, 2015 to July, 2016. PREPARATION OF TYPE ROLLS: To provide facility to cotton exporters, the Association had been preparing Type Rolls of 1503, 1467, Afzal, Alaka. Adnas and 1210.

-: 21 :- IMPORT OF ONE USTER HVI 1000 M 1000 (THE FIBRE CLASSIFICATION AND ANALYSIS SYSTEM) 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. NUMBER OF MEMBERS OF ASSOCIATION AND BROKERS IN 2015-16 The position regarding members of the Association and Licensed Cotton Brokers for the year 2016-17 was as under:- Strength of Members 162 as on 30-06-2017 Less: Ceased to be members 01 161 Resigned 02 159 Add: Admission (upto 30-06-2017) 03 Total strength as on 30-06-2017 162 Strength of Brokers - Total strength of licensed Cotton Brokers 320 - Number of Brokers renewed 300 - Number of Brokers expired 9 - Vacant Nil - Ceased / Cancelled 11 - Number of Brokers Licences transferred/ fresh issued during the year 2016-17 (upto 31-08-2017) 05

THANKS AND GRATITUDE: -: 22 :- We place on record our deep thanks and gratitude to all members of the Association, members of various Committees set up by the Executive Committee as well as members of the Broker s Advisory Committee for extending their full co-operation, support and assistance in offering their valuable suggestions on all matters relating to the trade. These have helped the Association to carry out its responsibilities and obligations which resulted in better performance of its functions. We also place on record our deep thanks and gratitude to members of the Rate Committee for performing their duties carefully to fix spot rate of cotton on daily basis. Thanks are due to Federal Minister for Commerce / Textile Industry, Secretary and Joint Secretary, Ministry of Commerce / Textile Industry, Chief Executive, Secretary, Trade Development Authority of Pakistan, Member (Sales Tax), the Chairman, FBR and Chairman, TCP for their co-operation and assistance to this Association from time to time in matters concerning cotton trade. Thanks are also due to the Collector of Customs (Exports) for their co-operation and assistance provided to the Association, members of the KCA. Thanks are further due to Cotton Commissioner & Vice-President, PCCC, Director Marketing and Economic Research, PCCC for their valuable guidance on cotton crop monitoring and their support and co-operation extended to this Association from time to time. The Executive Committee like to place their appreciation on record for the efficient and dedicated services rendered by Mr. Aftab Alam, Secretary General, Mr. Muhammad Ali, Assistant Secretary (Stats), Mr. Hassan Haider, Accounts officer, Sh. Abdul Qadir Ahmed, BA/MO and other officers and staff of the Association during the year under review. We are confident that the new Executive Committee for the year 2017-18 would successfully meet the challenges which lay ahead in all matters relating to marketing of cotton and would strive to enhance the image of the Association further in the coming year. We wish them all success. The Cotton Exchange Karachi: 15.09.2017 (MUHAMMAD ATIF DADA) Chairman The Karachi Cotton Association **********