KARACHI: Buyers and sellers stayed on the sidelines on Tuesday as the cotton market failed to shrug off its lethargy of the last two days.

The market lacked trading interest owing to a slow off-take of cotton yarn and fabric. Buying at the retail end has been showing slackness, which is disturbing for the entire textile chain, brokers said.

A similar situation also prevailed in India where the sale of textile goods dipped at the retail end, causing an adverse impact on cotton prices.

Analyst Naseem Usman said the textile industry expects robust retail sales as it introduces new designs throughout the year to meet seasonal demand.

The Cotton Corporation of India (CCI) offered 7,500 bales for sale in the open market, but received bids for only 3,000 bales (356kg). According to the latest estimates, around 30.34 million bales are expected to be produced in India this season against 30.75m bales last season.

The Karachi Cotton Association (KCA) spot rates were steady at the overnight level. Only one deal of 1,200 bales from Rahim Yar Khan was reported at the rate of Rs6,950 per bale.

Published in Dawn, February 22nd, 2017