KARACHI: Higher arrival of phutti (seed cotton) and improved availability of quality lint further pushed cotton prices lower on Wednesday.

There is growing concern that if current falling trend in prices continues, the grower would suffer badly and this would have an adverse impact on the next cotton crop.

The minimum viable price for growers, as per cotton expert Naseem Usman, is Rs3,000 per 40kg but the prevailing prices of phutti both in Sindh and Punjab are much below the mark.

Mr Usman explained that when the season started, phutti prices were in the range of Rs3,000 to Rs3,300 per 40kg. However, as the season progresses, phutti prices are coming down and range between Rs2,600 to Rs2,900 per 40kg, he added.

Consequently, cotton prices which were being quoted at the start of the season at Rs6,700 for Punjab quality and Rs6,400 for Sindh variety are now being quoted at Rs6,250 to Rs6,350 for Punjab and Rs6100 to Rs6200 for Sindh, respectively.

During the last four sessions, lint prices recorded a fall of Rs500 per maund.

The leading markets in the world also remained under pressure on reports that US would be producing around 1.5 million more bales this season and has a closing stock of 1.4m bales from last crop. However, Indian cotton prices were steady on reports of crop damage by recent rains.

The Karachi Cotton Association (KCA) revised its spot rates downwards by Rs50 to Rs6,200 per maund.

The following deals were reported on Wednesday: 2,400 bales, Kotri, at Rs6,100 to Rs6,200; 1,400 bales, Mirpurkhas, at Rs6,100 to Rs6,200; 1,400 bales, Hyderabad, at Rs6,100 to Rs6,200; 2,000 bales, Sanghar, at Rs6,100 to Rs6,200; 1,600 bales, Shahdadpur, at Rs6,100 to Rs6,200; 2,600 bales, Tando Adam, at Rs6,100 to Rs6,200; 1,200 bales, Vehari, at Rs6,275 to Rs6,300; 1,600 bales, Chichawatni, at Rs6,300 to Rs6,350; 1,400 bales, Burewala, at Rs6,300 to Rs6,350; 600 bales, Samundri, at Rs6,300 to Rs6,350; and 200 bales, Mongi Bangla, at Rs6,350.

Published in Dawn, August 17th, 2017