KARACHI: The cotton prices remained steady on Thursday as trading activity could not pick up due to short supply of quality lint.
Though spinners were keen to enter into big deals, depleted stocks held by ginners kept the proceedings listless, floor brokers said.
Around 22,000 bales imported from India are lying at the Wagah border which has further deteriorated the situation as spinners are in dire need of cotton. The government is holding back the imports under Import Policy Order 2008, which restricts import of cotton to 500,000 bales.
Moreover, disclosure by Cotton Commissioner Dr Khalid Abdullah before the Senate Standing Committee on National Food Security and Research on Wednesday that cotton production in the country may witness further decline as cultivation of the crop in Punjab has declined by 28 per cent in the current season rang alarming bells in the market.
Spinners are running from pillar to post to meet their cotton demand and are also pressing upon the government to clear the stocks held at the Wagha border.
Limited cotton stocks held by ginners at below 200,000 bales are restricting trading activity and many big spinners are reported to have started cotton imports from West African countries.
The Karachi Cotton Association’s spot rates were unchanged at overnight level. Major deals on the ready counter were: 1,000 bales from Noorpur (at Rs5,500 a maund), 600 bales Dera Ghazi Khan (Rs5,700) and 400 bales Layyah (Rs5,850) (conditional).