Cotton business remains dull in Pakistan with further drop in prices and not much stocks of new crop cotton (2015-16) remain unsold with ginners. This week cotton market witnessed a decrease in the value of seed cotton prices by about Rs 100 per 40 kgs, while lint prices dropped by Rs 100 to Rs 150 per maund (37.32 kgs).
With decreasing supplies of good quality cotton from the current corp (August 2014/July 2015) remaining with the ginners, a further increase was seen in domestic cotton prices on Thursday. In fact, the price for the very meager seedcotton (kapas / phutti) remaining in the market in Sindh reportedly ranged from Rs 1,800 to Rs 2,400 per 40 kgs, while in the Punjab the seedcotton rates were said to have extended from Rs 2,000 to 2,700 per 40 kilogrammes, as per the quality.
With higher phutti (seed cotton) arrivals into the market and an ongoing easy trend on world market has lead to further fall in cotton prices on Thursday.
The Karachi Cotton Association (KCA) cut its spot rates for second consecutive session by Rs100 to Rs4,650 a maund, indicating the mounting pressure on lint prices.
The declining trend in lint prices world over has multiplied pressure on the domestic market .
The Trading Corporation of Pakistan’s (TCP) procurement drive seems to be failing as lint prices have dropped by between Rs300 and Rs350 since its start.
