MULTAN: Uncertainty prevailed in the cotton market on Saturday as trading dulled down further.

The Karachi Cotton Association lowered spot rate by Rs100 at Rs8,750. Lint prices remained under pressure in line with world cotton markets. New York Cotton Market closed down on its lowest price of 70 cent per lb at the weekend.

Market sources said this is a worrisome situation for the ginners, spinners and exporters alike.

The sources said cotton prices are going down and rates of yarn and cotton products will follow suit, thereby affecting trade.

Ginners have estimated stocks of 450,000 bales while spinning mills have about 3.5 million bales. Spinners are worried as the demand for cotton has ended while their stocks have piled up.

Meanwhile cotton farmers are worried due to the increasing trend in costs of input. Pakistani cotton growers are spending an additional 35-40 per cent over inputs as compared to India where the government is providing maximum subsidy to farmers.

The following deals were reported to have changed hands on ready counter: 400 bales, station Sadiqabad, at Rs8950; 780 bales, Bahawalpur at Rs8600; 265 bales (low quality) at Rs7700; 200 bales, Mailsi at Rs8900; 600 bales, Khanpur at 8875 and 200 bales, Jalalpur Pirwala, at Rs8500.

Published in Dawn, May 12th, 2019