Multan: Cotton and phutti (seed cotton) prices increased on Saturday due to slow arrival of new crop and an increasing price trend in the international markets. How­ever, the Karachi Cotton Association kept its spot rate unchanged.

Brokers said an unexpected increase in phutti demand was witnessed on Saturday as ginning factories from both Sindh and Punjab are purchasing it, with the demand outweighing the arrival.

Reasons behind the increase in phutti and lint prices include higher rates in international market, damage to crop by hot weather, loadshedding, non-availability of irrigation water, cancellations of import deals by Indian brokers and uncertainty over the estimate production of cotton in the country.

They said that some three years back spinning mills were producing 60 per cent pure cotton yarn and 40pc cotton mix or other artificial yarn but now the situation has changed as 58pc mills are producing mix or artificial yarn.

They noted that per acre yield in Pakistan – which is fourth largest country to produce cotton – is lowest among other countries.

They said that as per the cultivated area, cotton production in Pakistan should not be less than 18 million bales but the estimated. However the situation is such that the target of 14.3 million bales for this year will also not be achieved due to multiple reasons including unavailability of good cotton seed.

They said that country is earning about $11-12 billion through export; however the export could increase up to $35bn only by concentrating on increasing the per acre yield by introducing good seed varieties and announcing subsidy for farmers.

Phutti prices in Tando Bhago were at Rs4,050; Thatha at Rs4,025; Badin at Rs4,075; and Kunri at Rs4,025.

The following deals were reported to have changed hands on ready counter: 200 bales, Sadiqabad, at Rs8,075; 200 bales, Rahim Yar Khan at Rs7,650; 4,064 bales, Khanpur at Rs7,300-7,600; and 400 bales, Rajanpur at Rs6,800.

Published in Dawn, June 10th, 2018