Cotton prices drop



Cotton prices slightly fell in a lackluster trade on Tuesday as traders were hesitant to buy the commodity in bulk due to subdued demand.   The spot rate settled at Rs5,500/maund (37.324 kilogram each), down Rs50/maund from the previous level.

Around 1400 bales of cotton were changed hand in the ready markets of Sindh and Punjab.

Brokers said the Trading Corporation of Pakistan also sold 2,000 bales to spinning mills as ginners continued to ask high prices for the premium quality fiber amid fast depleting lint stocks with them.

They said imports of almost 100,000 bales from India also soften local prices. The local cotton market remained easy and didn’t show any excitement on the government’s decision to reinstate zero-rated tax regime for the textile sector in 2016/17 budget.