Tight supply of lint quality show modest improvement in prices

At the cotton market on Tuesday in the process of tight supply of fine quality, dealers said that prices showed modest improvement. Market sources said that the ginners, who have limited stock of unsold quality lint raised prices, so a few needy mills and spinners indulged in fresh buying to meet requirements

The official spot rate gained Rs 50 Rs 5,600 while in ready session, approximately 3000 bales of cotton changed hands between Rs 5300 and Rs 5900, dealers said.

According to cotton analyst, Naseem Usman, both buyers and sellers were confused over non-availability of better variety. The country has to import cotton to meet local demand, he added.

It is felt that the local textile industry was facing hardships in meeting orders from the international buyers due to a short supply of cotton. Hence, the cotton importers have welcomed the government plans to allow import of 300,000 bales to meet textile industry’s demand.

The following deals were reported to have changed hands as per dealers: 1400 bales from Khanewal at Rs 5300-5550 and 1800 bales of cotton from Rahaim Yar Khan at Rs 5900.

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