KARACHI, Sept 30: Trading on the cotton market on Monday resumed on an easy note as spinners lowered their bid prices after fears of short supply owing to national elections were allayed thanks to steady arrivals of phutti into the ginneries.

There was no signs of active mill buying witnessed last week amid fears of pressure on supplies of lint because of election activities as ginners were out to offload their long positions even at the lower rates.

Cotton prices, which were poised to hit the high mark of Rs2,050 per maund at the weekend session, fell to as low as Rs1,925, average rate being well below the Rs2,000 mark.

“Picking operations of phutti in the fields may not be affected as a public holiday on Oct 10, could prove just a passing phase in pickers lives,” a leading broker Naseem Usman said commenting on the spinner fears interruption in supplies ahead of election day.

In such conditions, pickers reschedule their operations in such way that chances of disruption are very slim, he adds saying “among women pickers there are also very few voters.” Phutti is generally picked by the women pickers.

However, both ginners and spinners are a bit worried over the increase of withholding tax on lint to be paid by the spinners to 1.50 per cent from the previous 0.75 per cent and imposing sales tax on it, which pushes the total to 1.72 per cent.

“It is a late-season cost-push step, which will make end-products more expensive having a negative bearing on the exports of textiles,” says a leading spinner.

At a representative meeting of Pakistan Cotton Ginners Association (PCGA) and Aptma held in Multan on Sept 30, a four-member committee has been formed to take up the issue with the Ministry of Commerce and will seek its early withdrawal.

Official spot rates were, however, revised upward by Rs20 to match the weekend ready prices and are expected to be lowered on Tuesday. Ex-factory phutti rates were Rs840 to Rs875 per 40kg for both Sindh and Punjab varieties.

Unlike the previous sessions, ready offtake was light totalling about 3,000 bales as under:

SINDH TYPE: 400 bales of Sultanabad at Rs1,950 and 200 bales at Rs1,925; 700 bales, Tando Adam at Rs2,000; 200 bales, Shahdadpur at Rs1,975; and 200 bales from Sanghar at Rs1,985.