KARACHI: Listless conditions prevailed on the cotton market on Friday. The declining textile exports and energy crisis are keeping buyers away from the trading ring.
The textile sector is also facing liquidity crunch. The 10-day strike by goods carriers also had its toll with many exporters reported to have lost orders.
Cotton analyst Naseem Usman said that the government was not serious to resolve the issues faced by the trade and industry and resultantly the trade deficit has soared to an all-time high level.
Consequently, the trading activity remained slow as leading buyers were conspicuous by their absence. Though there is an increase in cotton sowing acreage the government has yet to announce any incentives for growers who have been demanding minimum price of Rs3,000 per 40 kg for phutti.”Against this the Indian government has already announced incentives for cotton growers by increasing support price for phutti (seed-cotton),” brokers said.
The world leading cotton markets for second consecutive session closed easy under the lead of New York Cotton Exchange.
The Karachi Cotton Association (KCA) readjusted its spot rates downwards by Rs50 to Rs6,800 per maund.
On the ready counter only one deal of 803 bales from Khanewal was finalised at Rs7,000.
Published in Dawn, May 20th, 2017