KARACHI: Cotton prices surged on Monday due to renewed demand from spinners who rushed to replenish their inventories on fear of late arrival of next cotton crop.
Late crop arrival is feared owing to delay in sowing caused by acute shortage of irrigation water in Punjab and Sindh.
There was panic in the trading ring but shortage of quality lint restricted proceedings and trading volume could not swell despite strong demand from the textile industry.
Due to sustained demand, cotton prices on ready counter moved up by Rs200 to Rs300 per maund.
Reports coming from cotton fields indicate that growers are facing acute water shortage and in many parts of lower Sindh farmers have to repeat sowing which strongly indicates that the next crop would be late.
The Karachi Cotton Association (KCA) also increased official spot rates by Rs200 to Rs7,500 per maund.
The following deals were reported to have transpired on ready counter: 1,400 bales, Mirpur Mathelo, at Rs7,500 to Rs7,800; 1,200 bales, Ghotki, at Rs7,800; 400 bales, Liaquatpur, at Rs7,550; and 922 bales, Khanpur, at Rs7,925.