KARACHI: Cotton market was steady amid improved trading activity on Saturday.

By and large, rates on ready counter cotton prices remained above Rs9,000 mark. However, Karachi Cotton Association (KCA) reduced spot rated by Rs100 to Rs8,900. Cotton prices were under pressure at start of the week but stabilised later as demand from spinners subsided owing to unstable political scenario.

The overall decline in cotton prices during the week was in the range of Rs400 to Rs500 whereas phutti (seed cotton) prices declined by Rs100 only, hovering around Rs4,000 to Rs4,300 per 40kg.

According to preliminary estimates, Sindh is expected to produce 40 per cent less cotton this year due to an acute shortage of irrigation water at the time of sowing. The most affected area of the province has been reported to be Khairpur.

Meanwhile, private estimates put current season’s (2018-19) cotton production at around 11.5 million bales whereas officials estimates have been at 14.1m bales.

Due to supply shortage of phutti, most ginning factories in Sindh remain dormant. According to reports, of the total 28 units, only one unit is currently functioning while three to four units are partially operational.

Reports from Sindh suggest a large number of women normally engaged in cotton picking remain unemployed. Similarly, traders in allied cotton economy have also suffered badly during current season.

On the international front, the US Department of Agriculture estimated higher cotton production – including left over stocks – which lowered lint prices on New York cotton market during the week.

The following deals were reported to have changed hands on ready counter: 1,800 bales, station Tando Adam, at Rs8,950 to Rs9,100; 1,400 bales, Shahdadpur at Rs8,900 to Rs9,050; 1,000 bales, Sanghar at Rs8,900 to Rs9,000; 400 bales, Sinjhoro at Rs9,000; 200 bales, Khadro at Rs8950; 200 bales, Shahpur Chakar at Rs9,000; 400 bales, Burewala at Rs9,150 to Rs9,200; 400 bales, Chichawatni at Rs9,175 to Rs9,200; 200 bales, Sahiwal at Rs9,150 and 400 bales, Toba Tek Singh at Rs9,140 to Rs9,175.

Published in Dawn, August 12th, 2018