KARACHI: Lack of interest among buyers remained persistent in the local cotton market during the outgoing week, but some lots of quality lint were sold, which caused the spot rate to rise by Rs500 per maund.
Traders said ginners were left with hardly 65,000 bales, which they were selling slowly and gradually in the market, as textile mills were less interested in buying due to cotton yarn prices.
Cotton prices in Sindh remained at Rs10,200 per maund to Rs10,600 per maund. Rates in Punjab varied between Rs10,800 per maund to Rs11,500 per maund.
Some good quality isolated lots and sale on credit were also recorded at Rs12,000 per maund.
Spot committee of the Karachi Cotton Association increased the spot rate by Rs500 per maund to Rs11,300 per maund.
Due to pandemic, the government imposed smart lockdown and trade decreased in the local market and the traders are less interested, as they are afraid amid assumptions for a complete lockdown.
Last year several industries were closed while textile mills also remained shut for one to one and half months.
Thus, fear of the lockdown has kept the traders on the backfoot.
On the other hand, there was a positive news that the private sector is also interested to get the cotton production increased along with the public sector.
Pakistan Cotton Ginners Association is also active and has formed a task force for the awareness of the growers.
Besides, Federation of Pakistan Chambers of Commerce and Industry’s regional cotton committee and textile and cotton sector are active and held meetings.
In addition, government departments have also become energetic and they have shown interest to increase the cotton production while the government has allocated Rs10 billion for enhancement of cotton production, which would be spent on seed production and subsidy to the farmers.
Traders said cotton was almost out of market, whereas some stocks were left with the ginners. However, with exception to few mills, all ginning factories were closed due to the end of the season.
Chairman Karachi Cotton Brokers Association, Naseem Usman, told The News that prices in the international market were almost at an increasing trend and stable in some markets.
US exports dropped 16 percent during the week due to dollar depreciation and drought like situation in the largest cotton growing Texas Estate.
Prices either remained stable or increased in Brazil, Argentina, Central Asia, Africa and India.
Sindh Minister for Agriculture Ismail Rahu cotton would be grown on 600,000 hectares in Sindh. Of which, half of the land has been cultivated.