Rising demand for quality cotton pushes prices higher

Trading activity at Pakistan cotton market witnessed rising demand for quality cotton pushing prices higher on Thursday where leading spinners and some exporters remained in the front of buying spree.

The Karachi Cotton Association’s spot rates saw rise by Rs50, to Rs6,300 per maund (around 37 kilograms).

Buyer remain under panic due to confusion over cotton imports from India and indirect ban based on reports that Indian cotton shipments failed to fulfil phyto-sanitary certification, threatening the $822 million-a-year trade.

Spinners on their part are perturbed over the issue because they fear that this will trigger higher imports of cotton yarn from the neighbouring country and work against their interest.

Meanwhile, the textile industry in Punjab has been agitating over higher gas prices and lower pressure and claimed that over half of different industrial units have closed down.

The parent body of the textile sector, the Pakistan Textile Exporters Association, has decided to observe black day on Dec 6 to mark their protest against shortage and high prices of gas in Punjab.

Following major deals on the ready counter were seen changing hands: 1,000 bales from Sanghar done at Rs5,900, 1,200 bales Khair¬pur (Rs6,150 to Rs6,200), 2,000 bales Saleh Pat (Rs6,250 to Rs6,300), 2,000 bales Rohri (Rs6,250 to Rs6,300) and 1,000 bales Ghotki (Rs6,500 to Rs6,575).