KARACHI: Trading activity on the cotton market on Thursday slowed down as buyers took to the sidelines. Shortage of quality cotton continued to restrict trading volume.
The textile industry continues to suffer from a liquidity crunch owing to non-payment of refunds for the last five months, with outstanding amount ballooning to Rs100 billion, brokers said.
“If the government fails to fulfill its commitment of paying refunds within 72 hours, exports cannot grow. The FBR refund payment system FASTER is still not working properly and filing of refund claims is not possible,” said former chairman Aptma Yasin Saddiqi.
Some needy mills managed to get hold of deals of their choice while other textile mills compromised on quality and booked deals from lower quality lint.
On the global front New York cotton remained firm but Indian and Chinese cotton were easy.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs9,000 per maund.
The following deals were reported to have changed hands on ready counter: 400 bales, station Shehar Sultan, at Rs9,150; 4,400 bales, Rahim Yar Khan, at Rs9,000-9,100; 1,000 bales, Sadiqabad, at Rs9,000-9,100; and 1,000 bales, Fort Abbas, at Rs8,350.
Published in Dawn, November 29th, 2019