MULTAN: The cotton market was stunned on Thursday with the first advance deal of new crop from Punjab at Rs8,100. The deal, comprising 200 bales, took place in Burewala. Prices of phutti (seed cotton) also increased up to Rs3,500 for advance deals.

Meanwhile, the Karachi Cotton Association kept its spot rate unchanged.

Experts said the jump in prices has worried spinners but is satisfactory for ginners and farmer.

Spinners with stocks are observing the market closely for the time being while those who don’t have any stocks are in a worrisome position, market sources said.

They predicted that prices will further increase in coming days as China has started utilising its stocks. The demand for cotton will increase in both international and domestic markets.

Experts said severe shortage of irrigation water is causing hardships in the sowing process while the attack of pink bollworm on early cultivated crops has also added to the worries of farmers and the textile industry.

The following deals were reported to have changed hands on ready counter: 200 bales (advance deal), Burewala, at Rs8,100; 200 bales, Rahim Yar Khan, at Rs7,500; and 385 bales, Layyah, at Rs7,000.

Published in Dawn, May 25th, 2018