MULTAN: The trading activity on cotton market on Wednesday remained slow and restricted as both buyers and sellers kept to the sidelines.

The Karachi Cotton Association, however, increased its spot rates by Rs50 to Rs8,850.

The following deals were reported to have finalised on the ready counter: 800 bales, Sadiqabad, at Rs9,000; 200 bales, Khanpur, at Rs9,050; 400 bales, Lodhran, at Rs7,800; 600 bales, Rahim Yar Khan, at Rs9,000; 800 bales, Ahmedpur Sial, at Rs8,800 and 2,000 bales (low quality), Mirpur Khas, at Rs7,000.

Cotton dealers said ginners were anticipating up to Rs500 increase in prices amid rumours of further rupee devaluation against the US dollar under the IMF conditions to get a bailout package.

They said that the spinners were offering low prices for the good quality lots, but ginners were in no mood to oblige them.

The Punjab government has projected cotton sowing area at 6 million acres, they said.

“The provincial government is providing a subsidy of Rs700 on each cotton seed bag to farmers if they purchase it from the agriculture department,” they added.

On other hand, the farmers were directed to complete the cultivation of BT cotton till May 31 as per acre yield will affect if the cultivation is done after this date.

They said although the government has yet to announce the cotton production target for next season, but market reports suggest it will be around 15.5 million bales.

Published in Dawn, May 9th, 2019