KARACHI: The cotton market saw a downward trend on Wednesday in the absence of buying interest and short supply of quality lint. Buyers were unable to get hold of lint of their choice which restricted trading activity.
The falling cotton prices on ready counter also forced Karachi Cotton Association to revise official spot rate downward by Rs100 to Rs7,500 per maund. The world leading cotton markets also closed easy.
Slow demand and off-season sentiment kept the cotton market insipid though small spinners booked couple of deals to meet their immediate demand.
Meanwhile, encouraging reports were filtering in from the cotton fields where rains and improved flow of irrigation water in rivers has brightened the prospects of harvesting a good cotton crop for season 2018-19, said brokers. Being a semi-drought crop, cotton could survive in low water supply.
The new cotton crop arrival may be little late this season but it is mostly being estimated that crop production would be higher because many growers who suffered badly from sugarcane crop last season due to oversupply and partly because of low price for the produce would shift to cotton.
Meanwhile, Haji Sikander Hayat Bosan, federal minister for national food security and research, assured growers in Multan that government would do every to enhance cotton production for new season.
He said that already the federal government has allocated Rs2.5 billion for improving cotton production and up-gradation of agriculture sector and country’s research institutions are working towards higher production of cotton.
Trading on ready counter remained listless and slow. The following two deals were reported to have changed hands: 200 bales, Bahawalpur, at Rs6,975; and 1,000 bales, Bahawalpur, at Rs6,800.
