Cotton rates rise as demand outstrips supply

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KARACHI: The official spot rates of the Karachi Cotton Association rose on Monday by Rs75 to Rs5,700 per maund as demand of lint outstripped supply, dealers said.In the local market the ready business stood at 2,800 bales comprising 600 bales of Mir Pur Khas; 200 of Multan; 600 of Karor Pacca; 1,000 of Haroonabad and 400 of Vehari, while prices of lint ranged between Rs5,550 and Rs5,975 per maund.Growers, ginners, spinners and mill owners lauded the landmark deal for Bt cotton between the Ministry of Food and Agriculture and the US based agricultural company Monsanto. Persons concerned with cotton trade said that Bt cotton would help scale up production many times. The country needs 16.0 million bales each year, but this year it achieved around 12.70 million bales till April 1, said Pakistan Cotton Ginners Association s recent report.Ayub Usman, a leading cotton dealer, said after touching 14.3 million bales in 2004/05 season, Pakistani cotton crop has remained between 11 and 12.8 million bales since last five years. Abundant production of cotton is becoming more vital, both for local consumption and for meeting export demand. He said that farmers could not get ample supplies of certified Bt cottonseeds, local or foreign, and they are not likely to get these for the 2010/11 crop too. He predicted this year again growers out of desperation would be using uncertified Bt seeds with mixed results. The following are Karachi Cotton Association official spot rates for local dealings in rupees for base grade 3 staple length 1-1/16 micronaire value between 3.8 to 4.9 NCL.

Courtesy : The News


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