KARACHI: Short covering by spinners generated some activity on the cotton market on Thursday, although prices remained steady like elsewhere in the world.

Brokers said the market is expected to stay sluggish in coming days as most spinners are waiting for the new crop.

There are some quality issues, although around 250,000 bales are still held by ginners, they added.

Ginners believe a delay in the arrival of the next crop and shortage of cotton can lead to higher price in days ahead.

Leading world cotton markets, including New York, closed firm. There was no development that could change the current course of trading.

Meanwhile, the Karachi Cotton Association (KCA) has warned the government against imposing any tax on the import of cotton, saying it will disturb the existing free trade regime in the cotton economy.

Ginners are also demanding a tax relief. They have asked the government to reduce taxes on electricity consumed by ginning units.

The Karachi Cotton Association (KCA) spot rates were unchanged overnight. Following deals were reported on the ready counter: 1,000 bales from Faqirwali at Rs6,800 per maund (around 37 kilograms), 200 bales from Khanewal at Rs6,825, and 400 bales also from Khanewal at Rs7,000.

Published in Dawn, April 28th, 2017