KARACHI: The cotton market gave mixed trend on Saturday as dwindling stocks and shortage of quality lint continued to worry needy spinners.

Overall there was slow demand due to short supply of quality cotton. Market reports suggest that currently only 0.5 million bales are lying with the ginners.

However, quality issues are being reported. Spinner said that up to 75-80 per cent of cotton is of good value while the remaining 20-25pc lint is of poor quality.

Nevertheless, small spinners are still looking for cotton to meet their demand while big spinners are engaged in clearing imported cotton – a total volume of 25m bales.

The offered price for both Sindh and Punjab quality cotton ranged between Rs6,200 to Rs6,700 per maund while phutti (seed cotton) prices stood ranged Rs2,800 to Rs3,100 per 40kg.

Cotton analyst Naseem Usman said the country would be producing around 11.6m bales this season.

Meanwhile, Punjab government has planned to give a subsidy of Rs700 to cotton growers on certified seed in order to increase production of the commodity.

Cotton sowing in Punjab will start in April as early plantation has been banned. The sowing of cotton in lower Sindh has started but growers are complaining of water shortage.

The world leading cotton markets also gave mixed trend due to conflicting reports about production and consumption coupled by quality fears.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level.

The following deals were reported to have changed hands on ready counter: 600 bales, Daharki, at Rs7,700; 400 bales, Moro, at Rs6,575; 400 bales, Nawabshah, at Rs6,400; 400 bales, Rahimyar Khan, at Rs7,450; 1,200 bales, Khanewal, at Rs5,500 to Rs6,800; 200 bales, Vehari, at Rs6,650; and 200 bales, Haroonabad, at Rs6,500.

Published in Dawn, March 18th, 2018