| GEO Business|
Flood destroys 1m of cotton bales in Punjab
| Updated at: 1223 PST, Sunday, August 08, 2010|
KARACHI: Spot rate of average quality lint increased by Rs100 to Rs6,600 per maund for the third straight day on Friday due to an acute shortage of the commodity following floods in the country, dealers said.
A number of cotton deals were made throughout the country ranging from Rs6,100 to Rs6,850 per maund, while seedcotton (Phutti) was priced at Rs2,550 and Rs3,100 per 40kg in Sindh and Punjab respectively.
“Floods in the wake of heavy monsoon rains destroyed around one million bales of cotton worth Rs25 billion in Punjab, the country’s biggest cotton producing province,” said Karachi Cotton Brokers Forum Chairman Naseem Usman.
“Until the floods subside, the local market will remain unstable and prices could surge in days to come as supplies have severely been disrupted.”
He said intermittent and driving rains have had a negative impact on the standing cotton crop in Sindh, but floods from Punjab could hit the low-lying areas of Dadu, Moro, Sakrand and Naushahro Feroze and cause further damage.
Karachi Cotton Exchange Trader Shakeel Ahmed asked the government to provide seeds and fertiliser to growers who lost their standing crops in the floods so that they might cultivate again. Fifty percent of the country’s population earn a living from the soil.
Market turnover stood at 9,500 bales of raw cotton (170kg each), including 1,000 bales from Burewala; 700 bales from Vehari; 300 bales from Arifwala; 200 bales each from Sahiwal, Depalpur, Pakpattan, Mian Channu; 400 bales each from Hasilpur, Haroonabad, Khanewal, Chichawatni and Gojra; 600 bales from Bhawalpur; 1,100 bales from Bahawalnagar varying between Rs6,650 and Rs6,850 per maund and another 800 bales each from Mirpur Khas, Sanghar and Shahdadpur and 200 bales from Tando Adam; 400 bales from Hyderabad ranging between Rs6,100 and Rs6,200 a maund.
In the international market, US cotton rallied as cotton futures for October and December gained 0.20 and 0.59 cents to 84.20 and 80.06 cents per pound at the International Commodity Exchange, New York.