KARACHI, Nov 16: The business activity in the local cotton market once again remained tight and restricted with prices closing on the higher side for second consecutive session.

As the gap between demand and supply is widening up day by day the position is fast tilting in favour of sellers who are also faced with short supply.

“I would say that presently the situation has totally gone in favour of growers who are holding back phutti (seed cotton) in anticipation of getting better price for their produce,” a cotton consultant Naseem Usman told Dawn.

Leading textile groups, on the other hand, are striving hard to get hold of maximum quantity of good quality lint cotton which is mostly available by end December.

However, Aptma members in a meeting held on Friday, expressed their deep concern over the rapidly rising prices of cotton. They are worried over a situation where raw cotton prices have been moving up substantial during past two weeks but yarn prices did not show sympathetic response and are still depressed.

Though New York cotton market is reported to have came down after staying firm for a week but this did not reflect on the local market behaviour where most of deals finalized above Rs2,000 per maund.

As the growers are holding back their stocks the phutti prices also touched seasonal high at Rs1,000 per 40 kg as against official support price (minimum) of Rs780 per 40 kg.

According to floor brokers the Punjab dealers (ginners) during Ramazan would be entering into business deals after Taraveeh which would delay its reporting in the newspapers.

Although no trading has materialized in Sindh variety cotton but prices are reported to be steady.

The Karachi Cotton Association has further raised spot rates in order to match them closer to those which are being quoted on the floor of trading rings.

Around 7,000 bales have changed hands on the ready section of the market where leading groups continue to strive hard to get premium quality.

The following transactions have materialized by late afternoon on Friday. They are: 4,000 bales of Bhawalpur at Rs2,100, 3,000 bales, Ahmedpur East at Rs2,100 and 1,000 bales from Haroonabad done in the range of Rs2,025 to Rs2,050.