KARACHI: The cotton market witnessed higher trading volume in the aftermath of Pulwama attack, dashing hopes of cotton imports from India.

Following the attack India slapped 200 per cent duty on all imports from Pakistan. Meanwhile, buyers are more inclined towards meeting their cotton demand from domestic sources as fears are mounting that Pakistan may slap 200 per cent duty on products coming from India.

However, market talks suggested that many spinners are now looking towards the US and Central Asian States to meet their cotton demand. The world cotton prices are presently highly competitive and could equally suit textile industry’s pricing.

According reports, Indian cotton exporters are currently in a dilemma over the tense Indo-Pak relations. “They are not ready to take risk and go for shipments incase Pakistan retaliates and imposes high customs duty on Indian goods,” brokers said.

Nevertheless, cotton prices generally remained firm in line with world prices which are currently much below their average price line. The trade dispute between US-China continues to depress commodity prices the world over, brokers said.

During last three sessions of the week prices slightly rose on higher demand for cotton from textile industry which started to look at domestic source to meet their demand.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,500 per maund.

The following deals were reported to have changed hands on ready counter: 400 bales, station Sanghar, at Rs8,000; 400 bales, Hasilpur, at Rs7,350; 200 bales, Dera Ghazi Khan, at Rs8,700; 1,000 bales, Haroonabad, at Rs7,800; 1,000 bales, Alipur, at Rs7,900; and 1,800 bales, Mianwali, at Rs8,050-8,100.

Published in Dawn, February 24th, 2019