A Member of Cotton Brokers and Advisory Committee, Amir Naseem said that phutti supply has declined while demand for cotton has increased on the purchase from spinners and exporters. New York cotton futures have also increased, he added.

He said spot rates of Karachi Cotton Association (KCA) have increased by Rs100 per maund during the week to close at Rs6,500 per maund on weekend.

Amir said that recent rains have damaged cotton crop in lower Sindh. Similarly, ginners are continued with their strike against the levy of 3.5 percent withholding tax.

He said cotton was selling at Rs6,150 to Rs6,200 per maund in Sindh while it ranges between Rs6,400 to Rs6,500 per maund in Punjab.

Similarly, good quality new phutti price has also surged during the week in Sindh and it was ranging between Rs2,700 to Rs2,800 per 40 kg, he noted.

Binola price dropped to Rs900 per maund in Sindh and Rs1,000 in Punjab.

Copyright APP (Associated Press of Pakistan), 2011