Brisk trading prevails amid high prices of cotton
Various reasons can be held responsible for the low cotton yield, and high prices, this year. Few of them are, sowing of cotton declared 11 percent less then the target area of 3.2 Million hectares (approximately 0.352 Million hectares of land).
The seeds that were made available were contaminated and mealy bug affected. Even the BT type seed are for one time usage not suggested for re-sowing.
Even supply of irrigation water was unscheduled and did not suit to all sectors. Higher cost of pesticides, insecticides, urea, DAP, and other inputs diverts growers mind to other commodities.
During the week starting from July 28 to August 2, the market remained in the tight grip of traders.
According to Mr Ghulam Rabbani, Director of Karachi Cotton Association, less supply and high demand is basically responsible for increase in the prices of cotton. Fine lint experienced a strong demand at the Karachi cotton market on Monday. Leading mills and spinners purchased lint of all qualities, on this day. KCA settled the prices of cotton at Rs3,900 per maund.
In the domestic market nearly 1000 bales of cotton were traded at the various markets of southern Punjab, Sahiwal, upper Sindh, Mirpurkhas and Yazman, with in the range of Rs3,900 to 4,175 per mound.
KCA market remained firm on Tuesday when cotton prices stood at Rs3,900 per mound.
Markets of Shahdapur, Tando Adam, Arifwala, Ghaziabad and upper Sindh saw trades of another 1000 bales, with in the range of Rs3,900 to Rs4,175 per mound. Buyers from Sindh acquired fine line in huge quantity.
With the increasing demand of fine lint, spot rates on Wednesday, at the Karachi cotton market took a huge leap taking the prices at Rs3,975 per mound, reflecting a hike of Rs75 per maund.
Traders procured around 200 bales of fine lint each from Burewala, Arifwala, Pakpattan, Mian Channu and Bahawal Nagar at Rs 4,200 per maund, on this day.
Thursday saw another surge at the KCA spot market, when prices touched Rs4,050 per mound. Even price increase of Rs75 per mound could not affect the strong demand from traders.
Huge volumes of cotton exchanged hands at the market places of Sahiwal, Burewala, Pak Pattan, Hasilpur, Arif wala, Mian Chunnu, Garh Maharaja and Bahawalpur, which stood between the range of Rs4,200 - Rs4,250 per maund.
Leading buyers obtained maximum lots of lint at even higher prices than previous day when spot rates at KCA reached Rs4,100 per mound.
Huge excitement prevailed at the Friday market of Sahiwal, Burewala, Pak Pattan and Hasilpur, where around 800 bales of cotton were sold at Rs4,200 per mound.
Even though new cotton arrived in the market, trading acquired a dull mode on Sunday.
Both ginners and growers are of the opinion that fresh cotton will be able to get them better deals.
Presently, the spot rates at the Karachi Cotton Association (KCA) remained firm at Rs4,150 per maund and demand for fine lint moved on to the higher side.
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Fibre2fashion News Desk - India