Panic buying on cotton market
MULTAN: Panic buying was witnessed on the cotton market on Friday amid growing fear of short crop and its expected exports on a large scale.
Cotton broker Syed Mudabir Shah said that sudden unusual increase of up to 10 US cents in the price of Indian cotton within 72 hours was witnessed while on other hand it has also now been clear that Indian spinning mill owners want to purchase at least 50,000 bales from Pakistan through exporters after Eidul Fitr.
Usually the increase in Indian cotton market is between three to five cents but during the last three days it has been reached 10 cents, he said.
The exporters have become active to make deals for Indian sipping mills and the local cotton market now is running on a demand and supply basis.
The demand is more against the short supply and the spinning mill owners want to meet their near-future demand as during the last 10 days of Ramazan the process of delivery and payment becomes somehow tough.
He said that due to the early sowing the arrival of new cotton crop in Pakistan is two-and-a-half months earlier as compared to India and other cotton-growing countries.
The prices of phutti (seed cotton) increased with improving arrivals. Deals of 5,600 maunds of phutti took place across the country, of which 4,800 maunds were from Sindh and 800 maunds from Punjab.