MULTAN: The cotton market was dull on Friday as buyers and sellers remained on the sidelines. However, the Karachi Cotton Association increased it spot rate by Rs50 to Rs8,850.

Cotton experts said the market is sluggishness due to lack of buying interest, prices are relatively stable maintained.

Dullness in the market is due to two reasons: possible devaluation of the rupee against dollar and imposition of 11 per cent duty on cotton imports from July 2019.

Meanwhile prices of spindles have also gone up. According to sources, during the past four months spinning mills installed 270,000 spindles.

This is another reason why ginners are not selling cotton on low rates as they believe mills that are increasing the number of spindles will ultimately fill their inventories and cotton prices in future will go up.

The following deals were reported to have changed hands on ready counter: 400 bales, Rajanpur, at Rs8,925; 600 bales, Alipur, at Rs8,875; 600 bales, Khanpur, at Rs8,850; 400 bales, Yazman, at Rs8,200; 580 bales (low quality), Khanewal, at Rs7,750; 3,400 bales, Daharki at Rs9,100; 200 bales, Khanewal at Rs8,300; and 1,200 bales, Rahim Yar Khan, at Rs8,900-9,050.

Published in Dawn, May 11th, 2019