KARACHI: Sustained demand for quality cotton on Wednesday kept lint prices on the higher side.

The day was marked with yet another deal of 1,600 bales from station Ghotki done at seasonal high rate of Rs8,125 per maund. Market reports suggest that a ginning unit holding around 7,000 to 8,000 bales of quality cotton attracted buying from some spinners.

Though spinners are looking for quality cotton, very little stocks are left with ginners.

According to reports, the government plans to set up a Rs2.5 billion endowment fund in the upcoming budget for increasing cotton production by improving yield and quality to meet textile industry’s demand.

For three consecutive seasons, cotton production has been falling and hovered around 11m bales. As a result of this the industry has to import around 2.5 to 3m bales annually.

“After an initial setback to cotton sowing – owing to acute shortage of irrigation water – the new sowing season is now going smoothly. If the government keeps monitoring the situation and ensures supply of certified seed and pesticides, a bumper crop is very likely,” said cotton analyst Adil Naseem.

There is a greater possibility that more land would come under cotton cultivation in 2018-19 cotton season because sugarcane growers, after suffering heavily last season, would like to revert to the cotton crop, he added.

The world leading cotton markets gave mixed trend, with New York cotton coming under pressure. The Indian cotton market was firm.

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

The following deals were reported to have changed hands on ready counter: 1,600 bales, station Ghotki, at Rs7,300 to Rs8,125; 1,690 bales, Rahimyar Khan, at Rs7,800; 400 bales, Sadiqa­bad, at Rs7,700 to Rs7,800; 200 bales, Yazman, at Rs6,650; and 400 bales, Khanewal, at Rs6,600.

Published in Dawn, April 19th, 2018