Rates of cotton fell slightly on the local market on Wednesday owing to lack of buying interest, dealers said. The official spot rate depreciated by Rs 50 to Rs 8,800, they added. Prices of seed cotton in Sindh were at Rs 3000-4100, in the Punjab seed cotton prices were at Rs 3600-4100 and in Balochistan, rates of seed cotton were at Rs 3600-4400, they said.
In the ready session, about 10,000 bales of cotton changed hands between Rs 8400-9075, they said. Market sources said that local cotton market adopted the global track and it looks that trend may continued in the short term. Cotton analyst, Naseem Usman said that a kind of uncertainty prevailed in the market in the absence of fresh leads. Traders were looking some upset due to persistent fall in business activity, marketmen said.
Traders and businessmen urged the government to avoid increasing power tariff and withdrawing subsidy under the IMF proposed conditionalities as it would have devastating impact on the industry. They said that increase in electricity price would add to the cost of production for the industry in general and export industry in particular. As a result, the exports of textile products would not be competitive in the international market. Ultimately, it would cause further decline in the falling exports.
Reports suggesting that rates of cotton were almost mixed in the world markets, they said. The following deals reported: 1000 bales of cotton from Shahdadpur at Rs 8700, 800 bales from Nawabshah at Rs 8600/8700, 1000 bales from Salehpat at Rs 8650/8750, 1000 bales from Rohri at Rs 8650/8800, 600 bales from Ghotki at Rs 9025/9075, 1800 bales from Khairpur at Rs 8600/8625, 800 bales from Khanewal at Rs 8400/9000, 200 bales from Marrot at Rs 8800, 400 bales from Vehari at Rs 8700, 500 bales from Haroonabad done at the same rate, 1200 bales from Faqirwali at Rs 8650/8675, 600 bales from Fort Abbas at Rs 8600/8800, 200 bales from Hasilpur at Rs 8700 and 200 bales from Donga Bonga at Rs 8650, they said.