KARACHI, Jan 5: Active trading was witnessed on the cotton market on Saturday as mills and spinners were not inclined to take even a technical breather fearing an imminent price flare-up in the backdrop of a sharp fall in the arrival of phutti into the ginneries.

Analysts said the textile industry seems to be heading for a bigger crisis owing to a short crop and higher world prices, which in turn could upset the export targets for the current fiscal.

“The textile sector contributes about 65 per cent to the total in a fiscal and any interruption in competitive supplies could have negative impact on the annual export projections,” they added.

According to reports, well over 100 textile units have already been closed owing to expensive inputs and many others may follow them because of lint shortage and higher prices.

“The import of about five million bales of lint worth well over Rs70 billion may not be an easy job for the industry,” said a leading spinner, adding “from the money would come to line up imports at a competitive rate.”

Another 20,000 bales changed hands but unlike the previous session, most of the deals in physical trading were finalised at a bit lower rate as some of the ginners holding odd lots sought exit even at the lower levels, floor brokers said.

Barring a deal of 2,000 bales, from a southern Punjab ginnery was reported at Rs3,300 per maund, while all others were done between Rs3,175 and 3,250 per maund both on the lower and higher sides, respectively. Official spot rates were, however, firmly held at the last level of Rs3,125 per maund, but in the ready section bulk of the business was done well above it.

New York cotton futures on the other hand showed a fractional fall of 0.02 and 0.04 cents per lb at 68.69 and 70.36 for both the ruling March and distant May contracts, respectively.

The following are some of the notable deals which went through late on Saturday evening:

SINDH VARIETY: 3,000 bales, Shahdadpur at Rs3,175 to 3,200, 1,000 bales, Dadu at 3,200, 1,000 bales, Khairpur at 3,175 and 2,000 bales, upper Sindh at 3,250.