KARACHI: Cotton trading on Thursday touched rock bottom following reports that spinners have started clearing Indian-imported cotton from the customs. However, undertone was firm but outlook uncertain.

There was little buying interest from spinners who after waiting for the issuance of statutory release order (SRO) for abolishing duty and taxes on import of cotton finally started to clear cotton from customs.

Meanwhile, in a recent meeting with Prime Minister Shahid Khaqan Abbasi, Pakistan Cotton Ginners Association was assured that the ginners’ and gro­wers’ interest would be safeguarded even if duty and taxes were withdrawn on cotton imports.

According to market reports, around 3,000-4,000 cotton bales have been cleared by spinners from customs but they were asked to pay duty and taxes as related SRO is still pending.

However, spinners have already stockpiled their cotton demand till May-June this year since they had purchased around 10 per cent excess cotton over the last year, brokers said.

The New York cotton prices rebounded on renewed buying interest but Chinese and Indian markets closed steady to mix. The Karachi Cotton Association (KCA) spot rates were firm at overnight level. Two transactions were reported to have transpired on ready counter: 1,200 bales, Dherki, at Rs8,000 and 1,000 bales, Liaquatpur, at Rs7,400.

Published in Dawn, January 19th, 2018