KARACHI, Jan 24: Trading activity on the cotton market on Wednesday turned slow as ginners and spinners remained locked in a price war but the latter appeared to be on the receiving end owing to pressure on ready supplies.

Spinners and mills also curtailed their ready buying amid press reports that taxes on textile exports may be abolished to keep it competitive on the world markets, analysts said.

The textile industry is sending SOS to the government on the developing situation on the export front for the last couple of weeks and anticipates some relief measures to keep it on the rails, they said.

However, some of the leading spinners and mills did not follow the general line of action and purchased some fine lots from the Rahimyar Khan ginneries at the highest rate of Rs2,635 per maund, brokers said.

Inferior or low-mic lots were available well below this rate as some of their weaker links covered positions in them for blending purposes either with fine lots or polyester fibre to produce blended cotton yarn and cloth, they said.

Market sources said some of the spinners had increased the intake of polyester fibre to remain competitive on the export markets owing to higher local prices.

Official spot rates were again held unchanged at the last level of Rs2,550 per maund amid slow dealings.

New York cotton futures on the other hand posted modest gains ranging from 0.73 and 0.60 cents at 54.82 and 55.77 cents per lb respectively for both the ruling March and forward May contracts.

Ready off-take was modest totalling 10,000 bales as under: 1,000 bales, upper Sindh at Rs2,590, 5,000 bales, Sadiqabad at Rs2,575-2,620 and 3,000 bales, Rahimyar Khan at Rs2,590-2,635.