KARACHI: Trading activity on the cotton market declined further on Saturday as buyers preferred to stay on the sidelines. Prices remained firm but trading volume declined considerably.

The market is currently evaluating new developments including expected market access from China for Pakistani textile goods as well as the government’s commitment over reduction in gas tariffs for export oriented industry.

However, some millers remained focused on quality cotton and continued to replenish their stocks at lower level. Meanwhile, ginners have started operating their units after the government assured withdrawal of SRO-188 which imposes Sales Tax on oilseed cake.

Cotton prices increased throughout the week and gained Rs250 to Rs8,900 per maund. Though there seems to be some respite from buyers who want to see the rates roll back before further buying was made.

Prices on the ready counter stood higher, with Sindh and Punjab varieties were traded between Rs8,400-9,150 per maund, while phutti (seed cotton) was quoted in the range of Rs3,700-4,300 per 40 kg for both the qualities. Balochistan cotton was traded in the range of Rs8,600-8,800 per maund and phutti between Rs3,600-4,300 per 40 kg.

Due to short crop – which would not be more than 11 million bales – the textile industry will have to import around 4m bales to meet the domestic demand of 15m bales, industry sources said.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,900 per maund.

The following deals were reported to have been finalised on ready counter: 800 bales, station Khairpur, at Rs8,650-8,700; 400 bales, Ghotki, at Rs9,100; 1,000 bales, Rahim Yar Khan, at Rs9,100; 800 bales, Sadiqabad, at Rs9,100; 1,200 bales, Taunsa, at Rs8,775; 200 bales, Layyah, at Rs8,700; 200 bales, Shujabad, at Rs9,700; and 400 bales, Mian Channu, at Rs8,676.

Published in Dawn, November 11th, 2018