KARACHI: Tight supply of phutti (seed cotton) in both cotton-growing provinces, Sindh and Punjab, pushed lint prices higher on Saturday where sustained buying from spinners kept pouring in.
Floor brokers said recent rains in Punjab slowed down picking in the cotton fields and ginning factories are not utilising their full capacity at present.
The situation in Sindh is no different where, after first picking came to an end about two weeks back, fresh cotton balls were not ready due to moist weather.
Meanwhile, the chairman of National Assembly’s standing committee on commerce, Siraj Mohammad Khan, during his visit to the Karachi Chamber on Friday suggested that the government should impose a 10 per cent export duty on raw cotton and grey cloth to discourage exports of raw materials.
He added that his committee would also recommend that instead of giving refunds on duty and taxes, the government should give subsidy on gas and electricity to exporters. The Karachi Cotton Association (KCA) raised its spot rates in line with transactions on ready counter.
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The following major deals were reported to have changed hands on ready counter: 1200 bales from Shahdadpur done at Rs4600, 600 bales Sanghar at Rs4600 to Rs4650, 600 bales Mirpurkhas at Rs4600 to Rs4650, 400 bales Mongi Bangla at Rs4575, 400 bales Adda Flor at Rs4575 to Rs4600, 1000 bales Burewala at Rs4600, 600 bales Chichawatni at Rs4600, 400 bales Hasilpur at Rs4600, 600 bales Vehari at Rs4600 to Rs4625. And 400 bales Arifwala at Rs4600.
The New York cotton market came under correction after moving higher for two consecutive sessions as all the future contracts ended with modest declines.
Published in Dawn, August 30th, 2015
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