KARACHI: Lacklustre conditions prevailed on the cotton market on Wednesday as buyers lacked buying interest owing to depressed demand for cotton yarn and fabric in the world and domestic markets.
Floor brokers said spinners preferred to stay away from the proceedings as they were worried about their huge inventories of cotton yarn. Slow off-take of yarn and fabric has forcing spinning mills to cut their daily shifts to reduce production.
The government estimate for next cotton crop at 10.41 million bales is being taken as a ‘long shot’ because in the absence of any study about current season’s crop failure, the next crop planning could not be done, brokers said.
Talking to Dawn, Pakistan Cotton Ginners Association (PCGA) Sindh Chairman Zardari Lal said that the government should have set up committees to find out causes of this season’s crop failure, particularly in the Punjab.
He added that production came down by around 50 per cent in Punjab but there were many areas where crop size fell by up to 75pc year-on-year. The government should investigate this alarming situation, he said.
Without finding causes of crop failure, required measures could not be taken to save the next crop because if the negative impact was due to climate change nothing could be done. However, steps could be taken if there was seed, pesticide or fertiliser problem, he said.
However, the market remained extremely listless and devoid of activity because the entire textile industry is currently under deep crisis and spinners are not ready to take risk.
The world cotton market also remained easy where New York cotton finished lower for all the future contracts, except maturing March 2016 contract which recorded modest gain.
The KCA spot rates were steady at previous level. Major deals on the ready counter: 600 bales from Faqirwali (at Rs5,150 per maund) and 200 bales from Mianwali (Rs5,480).