KARACHI: Trading activity on the cotton market dwindled further on Thursday in the absence of buying interest from leading spinners who are reportedly keen on imports rather than replenishing their stocks with local lint.

Barring small deals, the market remained devoid of trading interest. Burdened with huge unsold yarn stocks and issues of quality, spinners are not interested in building their inventories from local cotton, brokers said.

Meanwhile, private estimates place cotton imports at 4 million bales for meeting domestic consumption demand and the import bill is expected to burden the already depleted foreign exchange reserves to the tune of $1.5 billion.

There is a greater need to increase cotton production and this would only be achieved once the government takes the issue seriously and comes out with a workable policy for achieving higher production, observed brokers.

Meanwhile, western markets were closed on account of Thanksgiving holiday on Thursday. However, on Wednesday the trend was positive as New York cotton managed to recoup part of recent losses for all the future contracts. Chinese cotton was also steady.

The Karachi Cotton Association (KCA) spot rates were steady at weekend level at Rs8,800 per maund.

The following deals were reported to have changed hands on ready counter: 600 bales, station Nawabshah, at Rs8,350; 800 bales, Khairpur Mirus, at Rs8,600-8,650; 400 bales, Ghotki, at Rs9,100; 1,000 bales, Haroonabad, at Rs8,350; 1,200 bales, Fort Abbas, at Rs8,650; 2,000 bales, Yazman, at Rs8,650; 1,000 bales, Shujabad, at Rs9,000; 400 bales, Feroza, at Rs9,025; 400 bales, Khanpur, at Rs9,025; and 600 bales, Sadiqabad, at Rs9,000.

Published in Dawn, November 23rd, 2018