MULTAN: Trading activity failed to pick up on Monday as quality cotton remained in short supply. The Karachi Cotton Association kept its spot rate unchanged at Rs7,400.

Experts opined that the coming cotton season of 2018-19 will be bullish due to the imposition of taxes by China and America on one another’s cotton products and the water crisis.

Although China does not release its cotton figures at the initial stage; however there are reports that sowing volume has reduced by up to 15 per cent this year compared to last year.

“There are chances that China will import a huge quantity from India and Pakistan due to less sowing and imposition of taxes by America on cotton and cotton products,” analyst said.

Cotton broker Syed Mudabir Shah said the irrigation water crisis in Sindh is badly damaging sowing in the province.

“The reports coming from lower Sindh are not encouraging as majority of the farmers there do not have any other option to irrigate their fields except from canal water. These areas are facing water shortage for the first time in cotton sowing period,” he said. He added that farmers in lower Sindh are not waiting for rains to complete their sowing process.

He said that although far­mers in Punjab are also facing irrigation water shortage, but over 80pc farmers there have tubewells. The weather in Punjab is also favorable for sowing which is underway, he added.

He said the country would not be able to achieve its target of 14.3 million bales due to water shortage at this crucial time of sowing.

Meanwhile, prices in New York cotton market were increased up to 4 cents during the last week while an increase of 1,470 yuan was also recorded in the Chinese market.

Prices of polyester fibre also increased on Monday up to Rs2, with one kilogramme being quoted at Rs171.

The following deals were reported to have changed hands on the ready counter: 200 bales, Ahmedpur East, at Rs7,125; 400 bales, Khanpur, at Rs7,450; and 200 bales, Haroonabad, at Rs6,675.

Published in Dawn, May 22nd, 2018