KARACHI: Activity on the cotton market slowed down considerably on Wednesday in the aftermath of the government’s decision to allow duty-free cotton imports. The ginners would be the hardest hit as they still hold substantial quantities of unsold cotton and cheaper imports may cause them to suffer huge losses, brokers said.

The phutti (seed-cotton) prices also moved lower on lesser buying from ginners.

Analysts strongly recommend the government to come up with a cotton policy wherein focus should be on increasing production which will serve all stakeholders in the chain and especially growers as the crop needs less irrigation water and could be exported without subsidy.

The Karachi Cotton Association spot rates were firm at overnight level at Rs8,700 per maund.

The following deals were reported to have changed hands on the ready counter: 400 bales, Sakrand, at Rs8,400; 400 bales, Rahimyar Khan, at Rs8,850; 200 bales, Gojra, at Rs8,000 and 200 bales from Burewala were done at Rs7,800.

Published in Dawn, January 17th, 2019