KARACHI, Aug 2: Cotton market on Thursday maintained a bullish outlook as new crop official spot rates were raised by another Rs50 per maund at Rs3,000. But in physical trading some fine lots from the central Sindh ginneries were sold at Rs3,225 per maund, billed as the season’s highest level so far.

But leading ginners said the phutti rate above Rs1,500 per 40 kg have pushed the cotton industry into a crisis as a dozen ginning factories, which had resumed new crop operations a month back have closed down their business.

“There is no margin but a loss after having purchased phutti at Rs1,500 per 40 kg,” said a leading ginner adding that ”led to the closure of ginneries.”

He said adding overheads to the ruling prices of phutti a ginner suffers a loss of about Rs01m.

“We will have to wait until growers loosen their grip on the price line after new crop from the upper Sindh and southern Punjab cotton belts arrives into the ginneries.”

“At the current rate of phutti at Rs1,500, a parity rate for lint comes to Rs3,300 plus per maund, which spinners claim are well above their export parity levels,” he said.Meawhile, reports reaching here from the southern Punjab cotton belt indicate that a ginning factory in Rahimyar Khan has resumed operations based on phutti from Sindh and the central Punjab cotton belts.

The picking operations in both the belts are expected to be resumed by the end of the next month as the crop there is sown late, market sources said.

Ready business was light owing to higher asking prices totaling about 1,000 bales, the following being some of the deals; 400 bales, Mirpurkhas and 200 bales, Tando Adam at Rs3,225,200 bales, Vehari at 3,175 and 200 bales, Chichawatni at 3,185.

The following are Thursday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,000 50 3,050.00

Equivalent

40 kgs 3,212 50 3,262.00