KARACHI: The cotton market remained under the grip of tight phutti (seed cotton) supply on Tuesday which pushed prices higher to a seasonal peak of Rs9,000 per maund.

There was sustained demand from spinners who are worried about cotton supply from domestic sources, particularly when the government has im­­posed customs duty and sales tax on import of cotton.

The Karachi Cotton Association (KCA) also revised spot rates upward by Rs200 to Rs8,800 per maund.

Phutti prices soared to Rs4,000 to Rs4,400 for Sindh variety and Rs3,800 to Rs4,450 per 40 kg for Punjab quality. In private deals some cotton transactions were reported to have transpired at recode price of Rs9,200 per maund.

Renewed spell of rains in Punjab and partially in Sindh disturbed phutti picking. This will further slow down the arrival and thereby create more lint shortage.

Barring small lot deals, the market remained devoid of activity owing to short supply of cotton.

The world leading cotton markets were generally steady.

The Karachi Cotton Association (KCA) spot rates were adjusted upward by Rs200 to Rs8,800 per maund.

The following deals were reported to have changed hands on ready counter: 400 bales, station Shahdadpur, at Rs9,000; 600 bales, Tando Adam, at Rs9,000; 200 bales, Hyderabad, at Rs9,000; 200 bales from Kotri, at Rs9,000 and 200 bales, Burewala, at Rs9,000.

Published in Dawn, July 18th, 2018