KARACHI: Buyers remained in the forefront on cotton market on Friday which kept lint prices on the higher side. Most of the activity was generated by leading textile spinners who strived hard to lift quality cotton.

The availability of quality cotton has increased with higher arrival of phutti (seed cotton) from Punjab.

However, some medium- and small-sized spinning units are presently facing financial crisis owing to payment of 10 per cent sales tax on cotton purchase and 7pc on yarn sales.

Private estimates suggest cotton crop size would not be more than 9 million bales and there are fears of short crop.

According to latest US Agriculture Department report Pakistan stood as the second biggest importer of American cotton despite the fact the weekly export figures indicated a fall of 32pc in US cotton.

Meanwhile, Food Department representative told Senate Standing Committee that climate change had been a major factor damaging different crops including cotton and there is a dire need to work on temperature resistance seeds.

The world leading cotton markets gave mixed to easy price trend with New York cotton coming under profit-selling.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs9,100 per maund.

The following deals were reported to have changed hands on ready counter: 1,000 bales, Khairpur Mirs, at Rs8,900-9,000; 1,000 bales, Hasilpur, at Rs8,900-9,100; 1,200 bales, Ahmedpur, at Rs9,100; 1,200 bales, Haroonabad, at Rs9,100-9,150; and 1,200 bales, Rahim Yar Khan, at Rs9,300.

Published in Dawn, October 26th, 2019