KARACHI: Demand for quality cotton remained sustained on Saturday despite slow fabric off-take. However, short supply and cautious approach of ginners in front of falling rupee value restricted trading activity.

According to market sources throughout the week there had been strong demand for quality cotton and many small spinners covered their stocks with second grade cotton.

As a result, prices increased between Rs200-300 per maund for quality lint and Rs100 per maund for second grade cotton.

Consequently, cotton from Sindh and Punjab was quoted between Rs7,200-9,000 per maund and phutti (seed cotton) in the range of Rs3,200-3,600 per 40kg. In Balochistan phutti arrival has stopped and ginning units have shut down operations.

Textile spinners are striving hard to cover their stocks with local cotton as rising trend in dollar price has made imports costlier. Ginners are holding a limited quantity of around 0.8 million bales which is insufficient to meet domestic demand, brokers said.

Meanwhile, cotton sowing in lower Sindh and south Punjab has started. All related government departments are actively working to ensure that the target of 15 million bales is met.

Chairman Pakistan Cotton Ginners’ Association (PCGA) Mian Muhammad Mabmood Ahmed told Dawn that he has asked the government to announce incentives for cotton growers and also fix Rs3600 per 40kg indicative price for phutti. The government should also ask the Trading Corporation of Pakistan (TCP) to procure cotton in next season.

The Karachi Cotton Association (KCA) spot rates were steady at Rs8,700 per maund.

Trading on ready counter was negligible. Only one deal of 1,000 bales from Sadiqabad was reported to have changed hands at Rs8,900 per maund.

Published in Dawn, April 7th, 2019