KARACHI: The cotton market remained devoid of much activity on Tuesday after the government allowed duty-free imports of cotton. However, spinners and exporters adopted a cautious approach amid an uncertain outlook.
The ECC’s decision would be effective from Feb 1-June 30.
Mian Mahmood Ahmed, a cotton ginner, told Dawn that the move will hurt ginning industry, adding that the unsold stocks of around 1.744 million bales may become a liability after the decision. The slow yarn offtake is another major issue confronting the spinning industry, which in turn failed to purchase more cotton from ginners. Presently, textile exporters are pinning hopes on Heimtextil orders.
Meanwhile, the Indian cotton prices perked up after the Cotton Association of India has reduced crop estimation from 0.342m bales to 0.335m bales. The New York and Chinese markets also closed firmer.
The Karachi Cotton Association left its spot rates steady at overnight level of Rs8,700 per maund.
The following deals were reported to have changed hands on the ready counter: 1,000 bales, Khanpur Mehar, at Rs8,750; 200 bales, Masoodo Rind, at Rs7,200; 400 bales, Rahimyar Khan, at Rs8,850; 500 bales, Khanewal, at Rs8,400-8,300; 400 bales, Chistian, at Rs8,000; 800 bales, Haroonabad, at Rs7,800-8,000; 400 bales, Hasilpur, at Rs8,000; 200 bales, Tonsa Shareef, at Rs7,400; 200 bales, Pir Mehal, at Rs7,000 and 200 bales from Kabirwali were done at Rs6,700.
Source: The Dawn, Pakistan Wednesday, 16 January 2019