KARACHI: The cotton market was unable to ward off uncertainty and lack of confidence as buyers stayed away and trading activity dipped down to rock bottom.
The entire cotton economy is currently faced with adverse domestic and world factors, inhibiting textile spinners to build up their stocks.
Despite short crop, the textile industry seems reluctant to replenish stocks which is worrying, observed a leading cotton broker.
The Indian cotton crop is also reported to be much short than anticipated earlier, says the Cotton Association of India (CAI).
However, it is encouraging to see that a large number of Pakistani textile producers of home and contracted textiles are participating in the four-day international trade fair, Heimtextil in Frankfurt from Jan 8-11, which is the world’s biggest display of textile goods.
According to Trade Development Authority of Pakistan, around 222 leading Pakistani textile producers are participating.
Meanwhile, trading on ready counter was extremely negligible as big buyers were conspicuous by their absence and the market remained devoid of much needed activity.
The Karachi Cotton Association spot rates were firm at weekend level at Rs8,700 per maund.
The entire cotton economy cycle seems to have come to a standstill because at each stage the stakeholders are currently in a fix and unable to clear dues of each other on holding huge stocks of unsold phutti (seed-cotton), cotton and cotton yarn and this having a spillover impact up to the value-added sector.
Published in Dawn, January 8th, 2019