MULTAN: Slow trading activity was seen on the cotton market amid shortage of quality lint.

Cotton broker Syed Mudabbir Shah said the ginners were interested in selling quality cotton to medium and small millers on future payments instead of low prices being offered by the big mills. One such deal was reported in the Pul Bagar district Khanewal with 3,000 bales at Rs9,800.

He said the small-sized millers who do not have the capacity to import cotton have no other option but to enter in to such deals. In addition, these deals allow millers to pay partial amount upfront and lift stocks when required.

He said the ginners also preferred small and medium mills as they can enter in to deals with them by getting prices of their choice.

Analyst Naseem Usman said that around $2 billion have been spent on cotton import in the ongoing season. The huge influx is a burden on the country’s foreign exchange reserves since the economy is already undergoing severe crisis.

He warned that if the current situation persists, the imports will increase further in the next season.

Phutti prices in both Sindh and Punjab remained between Rs3,200 to Rs4,800.

The Karachi Cotton Association kept its spot rate unchanged at Rs9,100.

The following deals were reported to have changed hands on ready counter: 3,000 bales (conditional), station Pul Bagar, at Rs9,800; 400 bales, Rahim Yar Khan, at Rs9,200, 200 bales, Fort Abbas at Rs8,800; 1,000 bales, Faqirwali, at Rs8,650 (600 bales) and Rs8,700 (400 bales); 400 bales, Tausna Sharif, at Rs8,300 and at Rs8,625 (200 bales each) and 400 bales, Layyah, at Rs8,300.

Published in Dawn, January 26th, 2020