960421

Growers stock

large quantity

of seed cotton

AMANULLAH BASHAR

KARACHI: A large quantity of seed cotton (kappas phutty) has been stocked by the cotton growers, specially in Punjab, to cash it at much better prices at the time of crisis, it is learnt. However they may have to bring the stocks to market before long to meet their liquidity needs for the next crop.

Although the new crop is estimated at 10.2 million bales so far, which of coarse can be described as a bumper crop, after the export of the commodity around 2.3 million bales, the remaining 8 million bales will hardly meet the local demand, because the remaining lot also includes low quality cotton.

The affluence of the growers has given them bargaining position. This is said to be a new feature in the cotton sector which may lead to further increase in cotton prices next year.

Meanwhile sowing of the next crop both in Sindh and Punjab has already been started.