MULTAN: Cotton prices surged on Monday on the back of panic buying from spinning mill owners. How­ever, the Karachi Cotton Asso­­ciation kept its spot rate unchanged at Rs5,600 per maund.

“The buying touched its highest panic level during the last one year on Monday,” said Cotton Ginners Forum Chairman Ihsanul Haq.

He said that after India, Bangladesh, Indonesia and Vietnam were also showing interest in importing Pakis­tani cotton and it was expected that cotton export agreements with these countries would be finalised within a few days.

Cotton broker Mudabir Shah said prices have increased as more than 50 per cent spinning mills were active for buying at a time.

He said there were rumours in the market that the Indian exporters have refused to fulfil their agreements of supplying cotton to Pakistani spinning mills as the prices have risen in India.

“The agreements were made between 33,000 and 34,000 Indian rupee per candy but now the Indian exporters are denying delivery and demanding high rates as the prices have been increased up to Rs41,000 per candy,” he said.

He said spinners from Vietnam usually purchase cotton from India but due to high prices in Indian market, they were also in contact with Pakistani exporters.

He said that for the first time in the country’s history, the Pakistani spinning mills had a competitor in terms of buying. He said that exports volume could be the 15 to 20pc of total production.

The prices of phutti (seed cotton) in Arifwala were Rs3500, Sahiwal Rs3450, Chi­­chawatni Rs3425, Chishtian Rs3400, Thatta Rs3400, Badin Rs3375, Umer Kot Rs3350, Kunri Rs3425 and Sanghar Rs3465.

Published in Dawn, June 28th, 2016