Cotton market witnessed slow trading and lack of buying interest

Despite the world cotton market giving a mixed trend, the cotton market in Pakistan remained steady. The Karachi Cotton Association left its spot rates unchanged.

However, trading on ready counter was slow and restricted. Major deals that changed hands were 1,000 bales from Sadiqabad at Rs7,000 par maund (around 37 kilograms) and 800 bales from Haroonabad at Rs6,800 to Rs7,000.

But still slow trading and lack of buying interest from spinners was witnessed. The brokers said that outstanding refunds held with the Federal Board of Revenue and high cost of doing business has put the textile industry in a difficult situation.

Brokers believe that the fate of next cotton crop also hangs in the balance because the government has not taken any decisive measures or policy so far to avoid a repeat of last two years’ crop failure.

They added that falling exports of textile goods have reduced cotton demand considerably, although a wide gap between demand and supply of cotton persists.

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