MULTAN: Buyers continued to opt for quality cotton on Saturday which further pushed prices of the commodity higher.

Increasing price trend was witnessed after the report issued by Pakistan Cotton Ginners Association showed a sizeable decrease in cotton production in the country.

The Karachi Cotton Association kept its spot rate unchanged at Rs8,900 despite an increase of Rs300-350 in phutti (seed cotton) prices.

According to cotton expert Syed Mudaabir Shah, cotton prices will increase further. “The country is expected to export $1.5 billion worth of cotton products to European countries this year under the GSP+ scheme. A shortfall of more than 20 per cent in cotton crop production will further push prices of the commodity up,” Shah added.

He recalled that textile millers who were selling their units earlier are now importing value-added machinery due to increasing trend in the volume of cotton products’ exports.

An increase of $2 was recorded in prices of petroleum products in the international market following the targeted killing of Iranian General Qassem Soleimani.

If tension prevails between USA and Iran there are more chance of increase in petroleum prices. Due to increase in petroleum products rates, a hike of Rs2 was recorded in the prices of synthetic fabric in the local market,” Shah added.

An increase of Rs350 was recorded in the prices of phutti in Sindh and Punjab where rates ranged between Rs3,800-4,750 and Rs2,800-4,650, respectively. Phutti coming from Balochistan’s Dalbadin and Naushki districts was priced between Rs5,000-5,250.

The following deals were reported to have changed hands on ready counter: 400 bales, station Sadiqabad, at Rs9,100; 600 bales, Khanpur, at Rs9,000; 400 bales, Liaquatpur, at Rs8,600; 800 bales, Faqirwali, at Rs8,500; 400 bales, Bahawalpur, at Rs8,700; 400 bales, Dera Ghazi Khan, at Rs9,350, 220 bales, Hasilpur, at Rs8,300; 200 bales, Burewala, at Rs8,200; and 400 bales, Ahmedpur East, at Rs8,500.

Published in Dawn, January 5th, 2020