MULTAN: Buying interest picked up on the cotton market on Wednesday, with much of the activity centered on quality lint which is running short supply.
The Karachi Cotton Association also increased its spot rate by Rs100 at Rs8,700.
Cotton brokers say rising value of dollar against the Pakistani currency is the reason behind increasing trend in prices.
They said that during the last one week as many as 10,000 bales have been imported from Afghanistan and all deals were made using Pakistani currency instead of the US dollar.
Sources said that earlier Pakistani mills were purchasing cotton from Afghanistan by paying its price in Pakistani currency but since the last three years trading shifted to dollar. Now however it has once again shifted to Pakistani rupees as mills refused to buy cotton using the dollar. Brokers said the estimate is being made keeping in view the purchase of cotton seed by Afghan cotton growers who procure it from Pakistan.
The following deals were reported to have transpired on ready counter: 200 bales, station Ghotki, at Rs9,500 (long staple); 200 bales, Alipur, at Rs9,000; 1,000 bales, Khanewal, at Rs8,600; and 400 bales, Yazman, at Rs8,400.
Published in Dawn, May 23rd, 2019