Cotton markets in Pakistan continued to observe dull trading despite the fact that the country produced less cotton this year as compared to last year, a dealer said on Saturday.
“Demand for cotton remained low in the country,” a broker at the Karachi Cotton Exchange (KCE), said. “The trading should have picked up after Pakistan Cotton Ginners Association (PCGA) reported low production of the commodity this year.”
PCGA reported a total production of 12.91 million bales (155 kilograms each) in the ongoing fiscal year 2013, which is lower by 1.89 million bales, or almost 13 percent, as compared to 14.81 million bales produced in the previous fiscal year 2012.
Reportedly, the government had set a production target of 14 million bales for this year.
The broker said that decline in demand for cotton yarn, especially from China, resulted in decrease in the demand for cotton, as well. Meanwhile, traders exchanged 1,172 bales at Rs4,700 to Rs6,300 per maund as compared to 2,420 bales traded at Rs6,100 to Rs6,700 per maund a day ago, the KCE reported.