KARACHI: After witnessing brisk activity throughout the week, the cotton market on Saturday turned lackluster as buyers withdrew to the sidelines. Trading resumed on a dull note, however overall undertone was steady and outlook positive.

Ginners avoided entering into deals in the hope of getting higher prices as demand peaks while the arrival of new crop is likely to be delayed.

During the week, cotton from Sindh and Punjab was quoted between Rs7,300 to Rs9000 per muand and official spot rates remained pegged at Rs8,800 per maund.

All government departments connected with cotton crop are reportedly working actively to achieve the next crop target — as wished by Prime Minister Imran Khan — at 15 million bales.

There is a hope that the country could achieve this target as federal committee for agriculture has marked out an area of 2.8 million hectors for cotton cultivation for season 2019-20. Above all, there would not be any shortage of water for the season.

However, the proposal to give Rs200 premium price to contaminated free phutti (seed cotton) per 40 kg still needs to be worked out along with a mechanism of giving this amount to growers, brokers said. The Karachi Cotton Association (KCA) spot rates were steady at Rs8,800 per maund.

Trading on ready counter was negligible as buyers stayed away from the trading ring and only one deal of 150 bales from station Kandiaro was done at Rs8,450 per maund.

Published in Dawn, April 21st, 2019