KARACHI: Trading on the cotton market remained restricted on Monday as buyers and sellers weighed the pros and cons of budget 2019-20.

There was little trading interest since all stakeholders are currently protesting against the proposed tax measures including imposition of 17 per cent sale tax on five zero-rated sectors.

During last week couple of federal government officials and ministers put cotton production at around 15-15.2 million bales. Punjab government has set a realistic cotton production target of 8m bales.

When added with Sindh’s average cotton production per annum of around 3.5 to 4m bales along with around half million from Balochistan and Khyber Pakhtunkhwa, the country would produce round 12-13m bales during 2019-20 season.

Private deals in new cotton crop were reported. Around 200 to 300 bales from station Sanghar were done at Rs8,500 per maund. Phutti (seed cotton) prices remained under pressure and were quoted between Rs3,800-4,000 per 40kg.

The Karachi Cotton Association (KCA) spot rates were firm at week-end level at Rs8,800 per maund.

Trading on ready counter remained a tame affair where only two deals materialised: 1,200 bales, station Mailsi, at Rs8,750; and 900 bales, Rahim Yar Khan, at Rs8,850.

Published in Dawn, June 18th, 2019