Cotton recovers

Karachi

The cotton prices recovered on Wednesday on higher demand, as well as in line with the trend prevailing in the international market.

The spot rates at the Karachi Cotton Exchange surged Rs50 to Rs6,000/maund. Dealers said the demand was higher from the millers and exporters, as there would be increased demand of made-ups world over on the occasion of Christmas.

The demand is increasing by the spinners to meet the orders from other textile and garment manufacturers. As many as 34,600 bales were traded in Sindh and Punjab regions.

Growers have sown more corn and sugarcane this season and reduced cotton acreage.

Corn and sugarcane producers benefit from tariffs that insulate domestic market prices from the international market, while cotton producers face lower prices and competition from cotton imports.