MULTAN: Cotton prices increased by up to Rs150 on Friday amid moderate business activity. However, the Karachi Cotton Association kept its spot rate unchanged at Rs9,000.

Phutti prices in both Sindh and Punjab remained between Rs3,200-4,800.

Cotton expert Syed Mudabbir Shah said the Pakistan Cotton Ginners Association is going to release its fortnightly report on Saturday (today). It is being expected that the quantity of unsold stocks will be drastically less as compared to previous years.

“Spinners are interested in lifting stocks before the report is issued because there is a strong chance the prices will go up after the document is released,” Shah said, adding that a big group of spinners purchased 15,000 bales during the last two days.

The country has an estimated annual consumption of 14-15 million bales. “The total production this year is estimated at around 9m bales,” Shah added.

Previously Pakistan was fulfilling its consumption requirement by importing cotton from India and about 3m bales were being imported from India annually, he said.

“However, this season, not a single bale was purchased from India because of which Pakistan becomes the second largest importer of US cotton,” he said.

Meanwhile, according to the monthly review of Karachi Cotton Association, import of textile machinery nosedived to $153m in July-Oct 2019. According to cotton experts, the increase in dollar value against Pakistan currency is forcing millers to buy old/scrap machinery from closed units.

The review noted that there was an increase of 12 per cent in July-October in readymade textile garments.

The following deals were reported to have changed hands on ready counter: 1,800 bales, station Rahim Yar Khan, at Rs9,100 (800 bales) and Rs9,200 (1,000 bales); 3,000 bales, Khanpur, at Rs9,100 (600 bales); 9,125 (1,000 bales) and Rs9,200 (1,400 bales); 1,200 bales, Sadiqabad, at Rs9,200; 400 bales, Faqirwali, at Rs8,600; 400 bales, Bagh-o-Bahar, at Rs9,100; 600 bales, Fort Abbas, at Rs8,900 (400 bales) and at Rs9,050 (200 bales); 400 bales, Daharki, at Rs9,050; and 400 bales, Liaquatpur, at Rs9,000.

Published in Dawn, January 18th, 2020