KARACHI: Buyers remained at the forefront on the cotton market on Wednesday, paying quality premium price for good lint.

After reaching a historical trading volume of 40,000 bales on Tuesday, trading resumed on overnight brisk activity. As the session progressed, buying orders flowed in, pushing prices further higher on ready counter.

Increase in arrival of phutti (seed cotton) could not depress cotton prices. Higher phutti prices were another factor for stable cotton prices.

It was interesting to note that textile mills have so far purchased around 1.1 million bales more over the corresponding period of last season – a strong indication that there would be lesser cotton imports this year.

Meanwhile, textile industry leader Gohar Ejaz has urged the government to impose restriction or duty on import of cotton yarn and fabrics being imported under the Duty and Taxes Remission on Exports (DTRE) Scheme.

Cotton analyst Naseem Usman said that currently growers and ginners are getting good prices for cotton. Yarn demand in domestic and world cotton market particularly China also surged.

Reports coming from cotton fields in Punjab indicate that the current heat wave has adversely impacted standing cotton crop, affecting plant growth.

The world leading cotton markets closed firm except Indian cotton which came under pressure on higher cotton production and fears of lesser imports this year from Pakistan.

The Karachi Cotton Association (KCA) spot rates were raised by Rs50 to Rs6,150 per maund.

The following major deals were reported to have transpired on ready counter: 1,000 bales, station Tando Adam, at Rs5,600 to Rs5,900; 3,000 bales, Khairpur, at Rs6,150; 1,000 bales, Rohri, at Rs6,150 to Rs6,200; 2,000 bales, Saleh Pat, at Rs6,150 to Rs6,250; 1,000 bales, Ghotki, at Rs6,300; 2,000 bales, Daharki, at Rs6,300; 800 bales, Haroonabad, at Rs6,100; 800 bales, Bahawalnagar, at Rs6,100; 1,400 bales, Bahawalpur, at Rs6,150; 2,200 bales, Mianwali, at Rs6,150 to Rs6,200; 2,000 bales, Dera Ghazi Khan, at Rs6,150 to Rs6,175; 1,000 bales, Shujabad, at Rs6,250; 1,400 bales, Jalalpur, at Rs6,300; 1,200 bales, Rahimyar Khan, at Rs6,250; and 2,600 bales, Fazilpur, at Rs6,300.

Published in Dawn, October 19th, 2017