MULTAN: Cotton prices came under pressure on Tuesday as spinners withdrew to the sidelines. The Karachi Cotton Association (KCA) cut its spot rate by Rs50 to Rs4,950.

Floor brokers said the situation was discouraging as cotton prices in Pakistan are the lowest compared to other cotton-producing countries.

Trading of phutti (seed cotton) was stopped in various cities of Sindh due to low prices, they said. The government has announced Rs3,200 per 40kg as support price but farmers are getting less than Rs2,500.

The price of phutti in various cities were: Chishtian Rs2550, Chichawatni Rs2430, Sahiwal Rs2450, Habibabad Rs2450, Burewala Rs2450, Hasilpur Rs2350, Sanghar Rs2390, Umerkot Rs2425 and Badin Rs2450.

Deals finalised on ready counter included: 400 bales Kotri at Rs4750/4800, 400 bales Hyderabad at Rs4750/4800, 600 bales Mirpur Khas at Rs4750/4800, 600 bales Sanghar at Rs4750/4800, 200 bales Khipro at Rs4800, 200 bales Gulachri at Rs4800, 200 bales Nooriabad at Rs4800, 400 bales Hala at Rs4800, 200 bales Pakpattan at Rs5100, 200 bales Burewala at Rs5200 and 200 bales Khanpur at Rs4500 (delivery on Aug 1).

Published in Dawn, July 8th, 2015

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