TCP delaying payment: Cotton trade recovers as few mills rushed to restore stocks

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KARACHI: Trading picked up on the cotton market as few mills rushed to restore their stocks. However, most activities remained restricted to quality cotton.
Floor brokers said many spinners moved into the trading ring to purchase lint, fearing shortage because of slow arrivals of phutti (seed cotton) into ginneries due to dense fog in Punjab.
Therefore, renewed buying interest helped cotton prices to firm up on ready deals where activity was fairly brisk. Many spinning mills who are operating in Sindh were the main buyers.
In Punjab, spinners and other textile industry is confronted with acute power and gas crisis and All Pakistan Textile Mills Association (Aptma) chairman S.M. Tanveer has already stated that its members are going to close down one shift.
Meanwhile, ginners from upper Sindh are complaining of liquidity crunch as the Trading Corporation of Pakistan (TCP) was delaying their payments against procured cotton.
However, TCP officials said the state-owned corporation was only seeking details about cotton deals made with ginners to verify amount before making any payment.
On world markets, the New York cotton recovered where all the future contracts ended with fresh gains.
Major deals finalised on ready counter were: 600 bales Nawabshah at Rs4,750, 600 bales Kazi ahmed at Rs4,800, 1,000 bales Rohri at Rs5,000, 800 bales Hasilpur at Rs4,850-5,000, 600 bales Burewala at Rs4,900, 1,000 bales Bahawalpur at Rs4,950-5,000, 600 bales Dera Ghazi Khan at Rs5,100, 1,000 bales Liaquatpur at Rs5,100, 1,600 bales Rahimyar Khan at Rs5,125-5,200, 1,000 bales Rajanpur at Rs5,150-5,200, 1,000 bales Sadiqabad at Rs5,150-5,200, and 500 bales Ahmedpur at Rs5,100.
The following are Wednesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.