KARACHI: Renewed buying interest at the lower level helped cotton market on Friday to witness mild recovery. However, activity remained slow and restricted in line with global trend.
Floor brokers said that as world leading cotton markets including US, China and India were currently depressed, the domestic market also continued to be devoid of activity.
The issue of regulatory duty on import of fine count yarn from India is another factor which is causing severe damage to the local spinning industry. The All Pakistan Textile Mills Association (Aptma) argues that it never approached the Ministry of Commerce for removal of 10 per cent duty on import of fine count yarn from India.
On the contrary, Aptma Chairman Tariq Saud sought increase in the regulatory duty on fine count cotton yarn imports, especially from India, to 20 per cent as lower duty did not help to check dumping.
The world cotton market also remained inactive with New York cotton came under correction and recorded modest recovery for all the future contracts.
The KCA raised its spot rates by Rs50 to Rs5,300 per maund. Major deals on ready counter were: 200 bales from Hasilpur (Rs4,800), 400 bales from Rahimyar Khan (Rs5,500), 400 bales from Yazman Mandi (Rs5,550) and 400 bales from Rajanpur (Rs5,600).