KARACHI: Renewed buy­­ing interest at the lower level helped cotton prices stabilise on Saturday. However, buying remained restricted as leading spinners stayed away from the market.

With world leading cotton markets including New York cotton showing some stability, the domestic market also witnessed buying at lower level.

After the waiver of duty and taxes of 9 per cent on cotton import, leading spinners are currently busy in clearing imported lint stocks.

Currently the entire textile sector is devoid of activity as yarn and grey fabric off-take has dwindled to rock bottom, leaving the entire cycle of money circulation stuck up, brokers said.

According to reports, smuggled yarn and grey fabric from China and India has resulted in closure of large number of power looms in Faisalabad and elsewhere.

If the government fails to check unbridled smuggling of yarn and fabric the entire textile industry would suffer heavily, market sources said.

The falling cotton prices also impacted other markets with phutti (seed cotton) falling down by Rs200 to Rs2,400-3,000 per 40kg for both Sindh and Punjab varieties.

On the global front, New York cotton after touching US80 cents per lb during the season is now hovering at around 75 cents per lb. Indian cotton also continues to be under pressure.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level of Rs7,000 per maund.

The following deals were reported to have changed hands on ready counter: 700 bales, Dadu, at Rs6,000; 1,600 bales, Rahimyar Khan, at Rs7,050 to Rs7,200; 400 bales, Hasilpur, at Rs6,800; 200 bales, Bakhar, at Rs6,800; 1,000 bales, Noor­pur Nauranga, at Rs6,700; 3,500 bales, Khanewal, at Rs6,600; 600 bales, Haroon­abad, at Rs6,250; and 1,000 bales, Layyah, at Rs6,100.

Published in Dawn, February 18th, 2018