Cotton prices rise on strong demand
Multan: Cotton and phutti (seed cotton) prices increased on Saturday due to slow arrival of new crop and an increasing price trend in the international markets. However, the Karachi Cotton Association kept its spot rate unchanged.
Brokers said an unexpected increase in phutti demand was witnessed on Saturday as ginning factories from both Sindh and Punjab are purchasing it, with the demand outweighing the arrival.
Reasons behind the increase in phutti and lint prices include higher rates in international market, damage to crop by hot weather, loadshedding, non-availability of irrigation water, cancellations of import deals by Indian brokers and uncertainty over the estimate production of cotton in the country.
They said that some three years back spinning mills were producing 60 per cent pure cotton yarn and 40pc cotton mix or other artificial yarn but now the situation has changed as 58pc mills are producing mix or artificial yarn.
They noted that per acre yield in Pakistan – which is fourth largest country to produce cotton – is lowest among other countries.