KARACHI, March 9: On short supply, raw cotton prices moved higher for second consecutive session as needy spinners strived hard to replenish their near future demand.

However, ginners on their part were reluctant to sell their stocks at this juncture knowing prices would tend higher in coming days.

A huge shortfall in raw cotton production in the Punjab is having its toll on prices in the domestic market.

Floor brokers said that dwindling supply of phutti, particularly in the Punjab, has raised fears that crop size would not exceed 13 million bales, thereby creating a huge gap between demand and supply.

As the third and the last picking is going on in both Sindh and the Punjab, the crop size is also becoming discouraging because after producing around 14.5 million bales, the country would be harvesting less than 13 million bales this season, brokers said.

Meanwhile, reports that India may also impose ban on raw cotton exports further dampened sentiment and many panicky millers were seen striving hard to replenish their stocks.

Furthermore, fresh rise in raw cotton prices in the world market also gave impetus to the price structure in the local market where short supply was already having its toll.

The Karachi Cotton Association (KCA) further increased spot rates by Rs54 per 40kgs to Rs7,389.

Similarly, most of the deals on ready counter were also transpired above Rs7,000 per maund.

The following transactions changed hands on ready counter: 1000 bales from station Yazman Mandi done at Rs6750, 1700 bales from Rahimyar Khan done at Rs7000, 4000 bales from upper Sindh done at Rs7000 to Rs7100, 400 bales from Lodhran done at Rs7000, 610 bales Hasilpur done at Rs7000, 400 bales from Alipur done at Rs7000, 400 bales from Multan done at Rs7000, 400 bales from Shujabad done at Rs7000, 600 bales from Rajanpur done at Rs7000, 1200 bales from Jalalpur done at Rs6400 to Rs7000, 800 bales from Fort Abbas done at 6700, 250 bales from Khanewal done at Rs6750, 200 bales from Vehari done at Rs6750, 200 bales from Arifwala done at Rs6150 and 1000 bales from upper Sindh done at Rs7250.