KARACHI: Frenzied buying from spinners soared cotton prices to a new seasonal high of Rs7,100 per maund on Thursday amid rising fear of short crop and lint quality.

As the prospects of cotton imports from India diminished, spinners panicked and rushed to replenish their stocks.

However, the Plant Protection Department (PPD) has now started to issue import permits for Indian cotton starting from January 1 to March 30, 2018.

On Thursday, cotton from Balochistan transacted at highest rate of Rs7,250 per maund but the deal was not reported officially.

The market remained highly fluid due to shortage of crop and quality cotton.

There are reports that Indian cotton crop in the state of Maharashtra – which produces around 25 per cent of Indian lint – has been damaged extensively due to bollworm attack. This has been a serious cause of concern for Pakistani spinners who were banking on Indian imports.

However, the spinners are more concerned about the timing of cotton imports from India because by the end of December 2017 much of the quality cotton would have been sold and they will once again face quality issue.

The world leading cotton markets gave mixed trend but Indian cotton closed higher on fear of short crop and issue of quality due extensive pest attack.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level.

The following major deals were reported to have changed hands on ready counter: 200 bales, Daharki, at Rs7,050; 1,000 bales, Saleh Pat, at Rs6,600 to Rs6,700; 620 bales, Shehar Sultan, at Rs7,100; 4,000 bales, Kot Sabzal, at Rs6,965; 6,000 bales, Fort Abbas, at Rs6,500; 1,200 bales, Haroonabad, at Rs6,500; 1,000 bales, Yazman, at Rs6,500; 1,000 bales, Kahror Lal Esan, at Rs6,400; 1,000 bales, Mianwali, at Rs6,400; 1,000 bales, Bahawalnagar, at Rs6,350; and 200, Panno Aqil bales, at Rs6,900.

Published in Dawn, December 8th, 2017