Cotton prices stabilized amid strong demand from spinners

Cotton prices remain firm amid strong demand from spinners, who were keen to replenish their stocks ahead of Eid-ul-Azha holidays at cotton market on Friday, dealers said. The official spot rate stayed unchanged at Rs 5,850. Some brokers said that after a long-time, prices halted decline.

In Sindh, seed cotton prices were at Rs 2800-3050 and in Punjab rates of Phutti were at Rs 2500-2900, as per 40 kg, they said. In ready business, around 15,000 bales of cotton changed hands between Rs 6000 and Rs 6100, dealers said.

The following deals were reported to have changed hands as per dealers: 1000 bales from Kotri at Rs 6000, 800 bales from Hyderabad at Rs 6000, 400 bales from Hala, 200 bales from Matiyari, 600 bales from Tando Adam, 1000 bales from Shahdadpur, 800 bales from Sanghar, 200 bales from Sarhari, 200 bales from Moro all finalised at the same rate, 800 bales from Mirpurkhas at Rs 6000/6025, 1600 bales from Nawabshah at Rs 6000/6050, 1000 bales from Khairpur at Rs 6000/6100, 400 bales from Kumb at Rs 6050/6100, 400 bales from Mehrabpur at Rs 6050/6100, 400 bales from Rohri at Rs 6100, 400 bales from Salehpat at Rs 6100, 1300 bales from Sahiwal at Rs 6000/6100, 400 bales from Bahawalpur at Rs 6100, 600 bales from Chichawatni at Rs 6100, 200 bales from Mian Chano, 200 bales from Haroonabad, 200 bales all done at the same price from Hasilpur.

According to cotton analyst, Naseem Usman, prices of cotton were under pressure due to increase in supply of Phutti particularly from Punjab. The textile industry was facing crisis and needed incentives to survive, the industry is seeking removal of duty on cotton imports to meet the expected shortfall in production this season, experts said. The growers and ginners were under pressure due to likely fall in rates after holidays.