MULTAN: Sluggishness prevailed on the cotton market on Thursday, resulting in restricted trading activity.

The Karachi Cotton Association kept its spot rates unchanged at Rs8,800.

Overall prices remained firm though traders adopted a wait-and-see approach. An increase of Rs25-50 was recorded in the prices of phutti to Rs3,900-4,175.

Cotton experts said that some deals took place as members of the Pakistan Cotton Ginners Association (PCGA) from Sindh are reluctant to go on strike to protest against government decision to impose general sales tax on raw cotton.

Ginners from Sindh are of the view that they would not join the strike as cotton arrival is underway in the province, sources said. However, PCGA members from Punjab are likely to join the strike as they strongly believe that imposition of GST will affect ginners and cotton growers.

The PCGA has called a general body meeting on June 23 in Bahawalpur to discuss the prevailing situation and finalise a decision regarding the strike.

The following deals were reported to have materialised on the ready counter: 600 bales, station Tando Adam, at Rs8,350-8,400; 300 bales, Nauabad, at Rs8,450; 400 bales, Sanghar, at Rs8,425; 1000 bales, Ghotki, at Rs9,125-9,150; 1,400 bales, Rahim Yar Khan, at Rs8,000-8,850; 1445 bales, Alipur, at Rs8,400; and 200 bales, Taunsa Sharif, at Rs8,600.

Published in Dawn, June 21st, 2019