Shortage of lint cotton likely to push rates higher

In the coming days due to the rising fear for lint cotton shortage, the prices are likely to be pushed higher on the cotton market, dealers said on Monday. The official spot rate picked up Rs 100 to Rs 6,500.

In the ready session, over 10,000 bales of cotton changed hands between Rs 5950-6800, while in Sindh seed cotton prices were at Rs 2700-3200, in the Punjab rates were at Rs 2800-3300, as per 40 kg, dealers said.

Many spinners were keen to import cotton due to export consignments. The textile industry has already entered into import contracts worth 1.6 million bales from other countries.

The following deals recorded to have changed hands on the ready counter were: 200 bales of cotton from Shahdadpur at Rs 5950, 1600 bales from Khairpur at Rs 6350/6400, 1000 bales from Saleh Pat at Rs 6500, 1000 bales from Rohri at Rs 6500, 600 bales from Doulatpur at Rs 6200, 1200 bales from Rahim Yar Khan at Rs 6800, 600 bales from Yazman Mandi at Rs 6600, 400 bales from Ahmedpur East at Rs 6600, 200 bales from Fort Abbas at Rs 6600, 200 bales from Bahawalpur at Rs 6600, 200 bales from Dera Ghazi Khan at Rs 6800, 800 bales from Sadiqabad at Rs 6800, 200 bales from Tonsa Shrif at Rs 6800, 400 bales from Mianwali at Rs 6550, 600 bales from Burewala at Rs 6500, 200 bales from Jalalpur at Rs 6675, 200 bales from Rajanpur at Rs 6650, 200 bales from Shehar Sultan at Rs 6600 and 400 bales from Alipur at Rs 6800.

According to cotton analyst, Naseem Usman, business activity came down as most of the leading buyers kept on the sidelines due to lack of buying interest.