Cotton prices improve with announcement of incentive for textile sector

At Pakistan cotton market on Saturday prices showed modest recovery with mills continuing to buy following the incentives to the textile sector, announced in the budget 2016-17, dealers said. In ready session, around 1000 bales of cotton changed hands between Rs 5400-5600.

The official spot rate recovered by Rs 50 to Rs 5,600, dealers said. While, in Sindh, seed-cotton prices were at Rs 3000-3100, per 40 kg.

Cotton analyst, Naseem Usman said that local mills, spinners and growers welcomed the announcements and the hoping exports of textile sector will show visible improvement in times to come.

According to reports, the revival of zero-rating regime for the textile and clothing exports appears to have buoyed the country’s largest industry. There are anticipations that concessions will help the industry competitive in the world market, other experts said.

The following deals were reported to have changed hands as per dealers: 200 bales of cotton from Ghotki at Rs 5800, 400 bales from Bahawalpur at Rs 4850, 200 bales from Jalalpur at Rs 5700, 1400 bales from Khanpur at Rs 5800, 500 bales from Rahim Yar Khan at Rs 5800, 400 bales from Sadiqabad at Rs 5800 and 400 bales from Rajanpur at Rs 5800.