MULTAN: Trading activity on the cotton market remained slow and restricted on Wednesday as sellers kept to the sidelines. The Karachi Cotton Association kept its spot rate unchanged at Rs8,800.

An increase of Rs50-75 was recorded in the prices of phutti (seed cotton) and cottonseed which were between Rs3,950-4,100 and Rs1,600-1,625, respectively.

The arrival of phutti is limited for now, however the flow will improve after two weeks. Meanwhile four ginning factories in Sindh have opened, taking the number of opened ginning units to 18; however work is yet to begin.

Cotton expert Syed Mudabbir Shah said that uncertainty is prevailing in the market due to the government announcement of general sales tax on raw cotton.

He said that although demand of the commodity has increased and exporters are active, however, trading is dull. In evening, ginners refused to sell the commodity at morning prices and that’s why trading activity has almost come to a halt, he added.

Shah said that ginners will not make the factories operational until the final decision by the Pakistan Cotton Ginners Association (PCGA) over the issue of GST. It is being expected that the PCGA will announce closure of factories.

The following deals were reported to have finalised on the ready counter: 200 bales, Nawabshah, at Rs8,450; 600 bales, Tando Adam, at Rs8,400-8,450; 400 bales, Sanghar, at Rs8,500; 1,600 bales, Rahim Yar Khan, at Rs8,800; 400 bales, Daharki, at Rs8,825; and 400 bales, Khanpur, at Rs8,750.

Published in Dawn, June 20th, 2019