MULTAN: The prices of seed cotton (phutti) dropped by up to Rs600, to around Rs2,700 per maund on Wednesday.

A cotton broker said oil mill owners in Rahim Yar Khan were on strike due to imposition of tax on cotton seed by the government which resulted into drastic decline in phutti prices. Other major factor was the government’s failure to provide uninterrupted supply of power to the textile sector, he said.

He said the situation was alarming as it could force cotton growers to shift their focus towards early sowing of wheat. The target of 15 million bales seemed elusive if the situation persisted, he said.

Prices of cottonseed (Banola) also witnessed a decline on Wednesday, he said. “Cotton growers will not only lose their interest in their standing cotton crop, but they may not cultivate the crop next year.”

He said spinning mill owners are going to shut their units for two weeks because of electricity shortage.

Low prices also affected phutti arrivals in some parts of Punjab, the broker said. Deals of 7,500 maunds of cotton seed took place in Sahiwal, Chichawatni 6,000, Haroonabad 4,000, Khanewal 4,000, Vehari 7,000, Gojra 800; and Okara 400.

The Karachi Cotton Association (KCA) revised down its spot rate by Rs100 at Rs5,800. A total of 9,200 bales changed hands across the country — 3,800 in Punjab and 5,400 in Sindh.

The following deals were finalised on the ready counter on Wednesday: 600 bales Tando Adam at Rs5,850; 1,000 bales Sanghar at Rs5,850; 800 bales Shahdadpur at Rs5,850/5,900; 2,000 bales Mirpur Khas at Rs5,850; 200 bales Hyderabad at Rs5,850; 800 bales Kotri at Rs5,850; 400 bales Sahiwal at Rs5,850/5,950, 200 bales Multan at Rs5,850; 400 bales Chichawatni at Rs5,850/5,950; 800 bales Arifwala at Rs5,900; 400 bales Vehari at Rs5,900; 200 bales Pakpattan at Rs5,950; 200 bales Bhakkar at Rs5,900; 400 bales Samandri at Rs5,900; 200 bales Mongi Bangla at Rs5,875; and 600 bales, Burewala at Rs5,900.

The following are Wednesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, July 24th, 2014