KARACHI: Cotton trade turned sluggish at the open markets across the country on Monday after ginners demanded a price higher than Rs6,200 per maund (37.324 kilograms) for the commodity, said a dealer.
“Ginners are demanding higher price for cotton after Pakistan Cotton Ginners’ Association (PCGA) reported lower production of the commodity for the first seven months of the ongoing fiscal year (July 2012 to June 2013),” said Naseem Usman, broker at the Karachi Cotton Exchange.
The PCGA reported a decline of over nine percent, or 1.23 million bales, to 12.37 million bales (155 kilograms each) production for the period from July 1, 2012 to January 31 against 13.61 million bales produced during the same period last year.
“The fall in production encouraged ginners to demand for a high price, while spinning mill-owners refused to pay a higher price,” said broker, adding that the situation resulted in low turnover of cotton at the open markets.
Traders exchanged 6,600 bales at Rs5,900 to Rs6,200 per maund against 11,600 bales traded on Saturday at Rs5,750 to Rs6,500 per maund, according to the KCE.The KCE, however, kept its cotton spot rate unchanged for the fifth consecutive day at Rs6,100 per maund.
Khanewal witnessed the highest trade of 2,000 bales at Rs5,950 to Rs6,100 per maund, according to the KCE.
Kandro (conditional), Faqir Wali and Haroonabad traded 1,000 bales each at Rs5,900 to Rs6,100 per maund. Burewala and Burewala (conditional) traded 600 bales each, respectively, at Rs5,900 per maund and Rs6,200 per maund, it said.
Shahpur Chaker and Shahpur traded 200 bales each at Rs5,950 per maund.The broker said that the local markets would gear up trading in a day or two because the demand for the commodity is expected to remain on the higher side amid less production.