KARACHI, Oct 8: The mill buying of the new cotton crop failed to show a significant improvement over the last fortnight’s average figures having a bearish impact on the local prices, which dropped to new seasonal low of Rs1,425 per maund.

After having imported about 0.7 million bales, spinners appear to be sitting pretty comfortable on the inventories watching the local prices fall like the house of cards.

“The 18.10 per cent decline in arrival figures of phutti for the fortnight ended Sept 30, should have triggered fresh buying orders from spinners but they were least worried over the fall,” cotton brokers said.

The post-Sept 11 scenario has created such an environment where entire trade has become cautious, and is presently faced with reduced orders from European and US buyers.

However, the textile industry feels more threatened as most of their exports are directed towards western markets from where fresh order after Sept 11 has dwindled down.

The reports of lesser phutti arrival should have flared up the cotton prices, particularly when the textile industry is poised to consume around 10 million bales against 9.5 million bales last year.

The textile industry has already invested around $600 million for BMR during last 18 months, and industry sources say that there is an increase of 3.5 per cent in spindles capacity.

According to Pakistan Cotton Ginners’ Association (PCGA) upto Sept 30, 2001, 0.865 million bales reached ginning factories as against 1.056 million bales recorded in the corresponding period last year. This indicates that the crop till now is short by 18.10 per cent.

The textile mills have so far purchased around 0.636 million bales from new crop as against 0.740 million they lifted during the corresponding period last year.

The phutti arrival in Punjab is much slower, where 0.357 million bales are reported to have reached ginners compared to 0.503 million bales recorded last year. Consequently, a steep decline of 28.91 per cent has been recorded.

Against this phutti arrival in Sindh is somewhat better, although lesser than the last year. In total 0.507 million bales have reached the ginneries as compared to 0.553 million bales recorded in the same period last year. Therefore, only 8.29 per cent shortfall has been registered.

The state owned TCP up to Sept 30, has procured 6,401 bales as against 5,000 bales in the same period last year. The private exporters, however, are yet to make their presence felt as they lifted a nominal quantity of 1,750 bales only compared to 39,030 bales purchased during the same period last year.