Cotton prices firm on strong demand
KARACHI: The cotton market reflected steady conditions on Saturday amid sustained demand for quality lint. Depreciation of the rupee against the dollar helped cotton prices stay firm.
However, trading activity could not rise due to short supply quality cotton. According to market sources, around 0.5 million bales are currently lying with ginners but hardly 20 per cent of these stocks are of quality cotton.
Earlier, major textile groups had booked around 3m bales for import. Almost 1.5m bales of imported cotton have already reached the country. There is hardly any quantity of phutti (seed cotton) left behind in the fields.
The country has managed to produce around 11.52m bales as per last ginners’ body cotton production figures showing a growth of 7.74pc over the last year’s cotton production.
It is encouraging that demand for cotton yarn further increased after rupee devaluation. Exports of textile goods have already recorded 9pc growth during last eight months.