KARACHI: Cotton prices came under pressure on Saturday following reports of higher arrivals of phutti (seed cotton) from Sindh and parts of Punjab. The activity, however, remained slow on the first working day after Eidul Fitr holidays.

Demand for cotton from spinners was slow in Sindh as they had already replenished their stocks by purchasing the commodity from the Trading Corporation of Pakistan (TCP), brokers said.

Around 20,000 bales of phutti have been reported to have reached ginneries before Eid.

According to reports, 15 ginning factories are currently operating in Sindh and six in Punjab. As the follow of phutti is improving, more ginning units are expected to start functioning in both the provinces.

The new crop phutti is currently being quoted in the range of Rs2,700 to Rs3,100 per 40 kilograms, whereas cotton prices after touching a seasonal high of Rs6,250 per maund (around 38kg) were quoted at around Rs5,060 per maund.

Cotton Association of India Chairman Dhiren Sheth in a telephonic conversation with Karachi Cotton Brokers’ Association Chairman Naseem Usman refuted allegation that Indian cotton exporters defaulted on their cotton deliveries to Pakistani importers.

He said all deliveries committed by Indian exporters up to April this year were met and it was not correct that any default was made by his members on this account.

Only 1,000 bales from Sindh changed hands on the ready counter. The Karachi Cotton Association left its spot rate unchanged at Rs6,050 per maund.

Published in Dawn, July 10th, 2016