Bears dominated the cotton market on Monday as the mills and spinners failed to make deals in a big way owing to crisis like situation faced by them, dealers said. The official spot rate retained overnight levels at Rs 5,350, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said.
In the ready business, deals of over 8,000 bales of cotton finalised between Rs 5300 and Rs 5600, they said. Cotton analyst, Naseem Usman, explaining the situation said that gloomy situation is persisted as the mills are in crisis due to unsold stock of yarn with them. They are facing financial problem, as they could not achieve best quality of cotton, he observed. Other experts said that situation could be different if the crop was not damaged by monsoon rains and floods.
To get rid of prevailing situation, the government should come forward for the safeguard of domestic industry and save the jobs and exports of local MMF yarns and fabrics producing textile mills by imposing regulatory duty on the import of MMF yarns and fabrics immediately. They also urged the government to announce the remaining part of the textile package without further delay to save the textile industry from total collapse.
The following deals reported, 2000 bales of cotton from Khairpur at Rs 5360-5400, 2000 bales from Sukkur at Rs 5400-5450, 400 bales from Haroonabad at Rs 5350-5400, 600 bales from Mianwali at Rs 5550, 600 bales from Sadiqabad at Rs 5600, 1000 bales from Rahim Yar Khan at Rs 5600 and 1200 bales from Khanpur at Rs 5600, dealers said.