MULTAN: Listless conditions prevailed on the cotton market on Tuesday due to the shortage of quality cotton, with lint prices touching the higher level at Rs8,100 per maund.

The Karachi Cotton Association (KCA) spot rates were also raised by Rs100 to Rs7,500 per maund.

Cotton experts feared that rupee could further plunge down against the dollar in coming days, though it has stopped extending its losses for now.

Sources said booking of Indian cotton has increased in the local market and there are chances that 460,000 bales would be imported in July and August alone.

Pakistan imported 3.2 million cotton bales from India during 2017-18.

Meanwhile, there are reports of pink bollworm attack on the cotton crop which was sown earlier in Punjab.

Analysts said that Punjab did its best to stop early sowing but some farmers went ahead and are now faced with the attacks. Pink bollworm attack will also affect the late sown crop and reduce per acre yield. Also the pink spots on lint will severely affect cotton quality. Meanwhile, ginners who have good quality stocks of good quality lint are hopeful that the prices will increase up to Rs8,500 soon.

There are chances that ginning factories will become functional by June 15 as the demand is very high.

Market sources said no major increase is being witnessed in the yarn market which is a matter of concern for spinners. However, there are chances that yarn prices might increase by the second week of June.

The cotton market is witnessing stability due to price increase in the international market and this prevailing situation has relaxed the ginners as chances of reduction in cotton prices are very limited, sources added.

The following deals were reported to have changed hands on ready counter: 5,311 bales, Ghotki, at Rs8,100; 400 bales, Khanpur, at Rs7,450; and 200 bales, Haroonabad, at Rs6,675.

Published in Dawn, May 23rd, 2018