MULTAN: Brisk activity was witnessed on the cotton market on Tuesday as spinners sought to meet their near-future demand. However, short supply of quality cotton restricted trade volume. Karachi Cotton Association also increased its spot rate by Rs100 to Rs8,100.

Cotton experts said that this is the first time during the ongoing season that the market has started to come into its natural rhythm. During the first half, the mill owners tried to purchase quality lots on favourable rates and about 12,000 bales exchanged hand. The market slowed down during the second half when ginners refused to sell the commodity on morning prices, experts added.

It is worth noting that exporters are active in the market as there is relaxation in taxes on exports.

Meanwhile, phutti (seed cotton) arrival improved both in Sindh and Punjab. During the last few days cotton prices were under pressure though the price of phutti (seed cotton) has remained stable and ranged between Rs3,450 to Rs4,200.

According to sources, 150,000 bales from old crop are still available with the ginners. However, mill owners are opting for new crop which is of good quality.

A sizeable of arrival of phutti was observed in Arifwala, Sahiwal, Vehari, Khanewal, Chichawatni and Mian Channu. It is being expected that about 15 factories will become functional in Punjab from next week. The number of functional factories in Sindh is 40.

Trading on ready counter was brisk where following deals were reported to have transpired: 3,000 bales, station Sanghar, at Rs8,225-8250; 5,000 bales, Tando Adam, at Rs8,200-8,250; 2,000 bales, Mirpurkhas, at Rs8,175-8,225; 400 bales, Khipro, at Rs8,200; and 400 bales, Burewala, at Rs8,400.

Published in Dawn, July 3rd , 2019