July 23, 2002	Tuesday	Jamadi-ul-Awwal 12,1423

KARACHI, July 22: Trading on the cotton market resumed on a dull note on Monday as spinners and mills were conspicuous by their absence eying the local sales tender by the TCP on July 24.

The underlying sentiment in part was also partly affected by some uncertainties about the new trade policy for the next year to be announced by the commerce minister later in the evening.

Although the minister has indicated more than twice that free trade policy will continue during the next fiscal also, some leading spinners and exporters generally played safe until the details of the policy are known.

Under the previous policy the import and export of lint cotton was allowed at the beginning of season, without ascertaining the size of the crop, which adds to speculative activity. Last season spinners have imported about 1.2m bales amid early fears of a short crop.

Floor brokers said spinners are expected to be back in the market after having examined the details of the new policy as well as the outcome of TCP tender.

The TCP has called fresh bids both from the local and as well as foreign buyers for another 20,000 and 21,000 bales on July 24 and 25 respectively in a bid to dispose of its entire unsold stocks before the advent of new cotton season.

They said physical business on the cotton market is shrinking each day as spinners and exporters are busy with the tender work to be submitted to the TCP on July 24 or before.

Meanwhile, reports coming from the lower Sindh cotton belt indicate that arrivals of phutti into the ginneries has increased, which in turn has a negative impact on the prices of phutti.

According to market sources, growers are selling phutti at the officially fixed price of Rs.800 per 40 kg or around Rs.790 depending on the quality but growers are said to be in mood to hold on to their positions to get higher prices.

Last season most of them have to sell phutti between Rs.450 to 650 per 40 kg owing to steep decline in world prices and TCP has to intervene to protect the interest of the grower.

There was no change in the official spot rates for the fourth session despite the fact that new crop is selling slightly below the level of Rs.1,850 per maund.

Owing to the proximity of the TCP tender, ready business remained slow and till late in the evening about 1,000 bales changed hands as under: 200 bales, new crop, Mirpukhas at Rs.1,850, 200 bales, Burewala ginned from the lower Sindh phutti at Rs.1,825, 200 bales, at Rs.1,840 and 200 bales, current crop at 1,900.00.