Buying interest revives on cotton market
KARACHI: Revival of buying interest pushed cotton prices higher on Tuesday as many spinners rushed to get hold of quality lint amid fears of short crop.
Floor brokers said that the start of third picking earlier than the schedule and arrivals of low quality phutti (seed cotton) caused some panic among spinners who kept looking for quality lint.
The shortage of quality lint is instrumental in pushing cotton prices higher as spinners are worried about their commitments of quality cotton yarn.
The market is presently faced with short supply of quality cotton, brokers said.
Meanwhile, the Trading Corporation of Pakistan (TCP) has approached the government to allow the disposal of last year’s cotton stocks of around 86,000 bales through small lots.
The corporation had been striving hard to sell these stocks through tenders but the buyers are not ready to deposit 10 per cent towards sales tax fearing they will face difficulty in getting refunds.