MULTAN: Panic buying was witnessed on the cotton market on Monday as lint prices increased by Rs150 amid growing fears of poor quality commodity in coming days.

There was an increase of Rs100 in phutti (seed cotton) prices which ranged between Rs3,600 to Rs4,250. Karachi Cotton Association also increased its spot rate by Rs100 at Rs8,300.

Cotton experts said that last week hardly two to three major textile groups were active in the market but today almost all major players were procuring stocks. Quality of phutti in Sindh has improved. However, rains are expected in the ongoing month which could compromise quality of the crop.

Sources said currently cotton picking is underway in the lower Sindh where Bt cotton was cultivated on maximum area.

Meanwhile, Pakistan Cotton Ginners Association has constituted two committees that will hold meetings with the officials of the Federal Board of Revenue over taxation on raw cotton and cotton oil cake respectively.

Major deals on the ready counter were: 2,400 bales, Tando Adam, at Rs8,375-8,450; 400 bales, Sinjhoro, at Rs8,425; 2,200 bales, Sanghar, at Rs8,400; 800 bales, Hyderabad, at Rs8,400; and 200 bales, Kotri, at Rs8,400.

The deals of old crop included: 200 bales, Vehari, Rs8,450; 200 bales, Chichawatni, Rs8,525; 800 bales, Khanpur, Rs8,500; and 2,500 bales, Rahim Yar Khan, Rs8,300.

Published in Dawn, July 9th, 2019