KARACHI, Sept 1: Physical business on the cotton market on Monday failed to expand as spinners extended guarded support in apparent effort to forestall further increase in prices.

Prices of Sindh variety, therefore, remained stable around Rs2,575 per maund without 15 per cent sales tax but some of the lots from the central Punjab cotton belt were sold at a discount of Rs25 to Rs35 per maund.

Floor brokers said in normal trading conditions, the Punjab variety is sold at a premium of Rs50 to Rs100 per maund owing to its staple length and fine quality, the current decline reflects some problems on the quality front.

Unconfirmed reports said the recent rain may have damaged the quality of lint, notably its micronaire, which in turn lowers the quality of cotton yarn spun out of it, they said.

But some others said the second rain spell in the Punjab cotton belt could well prove beneficial too if it is normal as it could add to the current flowering and washes away insects, which generally attack at the flowering stage.

They said fine and contamination-free lint will be on the market some time next month after picking operations resumes in the southern Punjab cotton belt and ginneries start turning out new crop lots.

Southern Punjab and upper Sindh not only are now known as the largest producers of cotton but also for the quality of lint, which they turn out, fetching higher price as compared to their lower and central Sindh lint, market sources said.

There have also been complaints from the spinners about the low-mic of lower and central Sindh lint at the beginning of the new season in late July but it has now improved since then, they said.

However, spinners and mills needing immediate supplies in the backdrop of falling stock inventories are buying it for blending purposes to meet their export deadlines for cotton yarn.

There is a relative quiet on the export and import front as exporters and spinners did not make fresh commitments and both the figures are static at the previous levels.

Official spot rates were, therefore, firmly held at the last levels although in the ready business most of the deals were done above them. Ready offtake was modest totalling about 3,000 bales as under:

SINDH TYPE: 1,200 bales, Tando Adam at Rs2,575, 200 bales, Shahdadpur at Rs2,585, 200 bales, at Rs2,575, 200 bales, Khipro at Rs2,575, 200 bales, Shahdadpur at Rs2,575 and 200 bales, Nayabad at Rs2,575.

PUNJAB VARIETY: 200 bales, Jehania at Rs2,550 and 200 bales, Jhang also at the same rate.