Slow trading on cotton market as spinner kept away from trading ring

Big spinners reducing their buying activity by keeping away from the trading ring as the issue of import of Indian cotton remain unresolved. There is a strong perception among spinners that the current situation of conditional imports of cotton from India is against the interest of the industry. This kept trading activity slow at cotton market on Saturday.

It is being argued that by restricting free flow of cotton from India the government is damaging the local spinning industry on two accounts. Firstly, it deprives the industry from cheap raw material and, second, it encourages cheaper cotton yarn imports from India.

The cotton prices in India came down after Pakistan restricted imports and this directly benefited their spinning industry which is giving tough time to Pakistani spinners on exporting cheap cotton yarn in the world market, according to brokers.

Major deals on the ready counter seen to have changed hands as per dealers were: 2,000 bales from Mirpurkhas (at Rs4,800 to Rs5,500 per maund), 1,200 bales Shahdadpur (Rs5,500 to Rs5,565), 1,200 bales Rohri (Rs6,300 to Rs6,350), 1,600 bales Saleh Pat (Rs6,300 to Rs6,350), 800 bales Ghotki (Rs6,475), 800 bales Dharki (Rs6,457), 600 bales Mianwali (Rs6,000), 400 bales Chichawatni (Rs6,200), 500 bales Dahranwala (Rs6,300), 1,000 bales Rajanpur (Rs6,300), 800 bales Fort Abbas (Rs6,375 to Rs6,400), 800 bales Maroot (Rs6,400) and 800 bales Rahimyar Khan (Rs6,400).

The Karachi Cotton Association also cut its spot rates by Rs50, to Rs6,250 per maund (around 37 kilograms).