Daily Times

KARACHI: Cotton prices in the country face a slight depression, but would remain on high side due to the growing demand of the commodity by textile and spinning sectors.

The import of cotton was under tight consideration as its international prices were on parity with prices in the country, said Pakistan Yarn Merchant Association senior member Ghulam Rabbani.

All Pakistan Textile Mills Association imported three million bales during this crop season to meet the shortfall, as the government’s target was of 14.10 million bales, he added.

According to Pakistan Cotton Ginners Association’s fortnightly report till November 15, around 8.78 million cotton bales reached the ginneries during the period underview, which show an increase of 8.1 percent when compared to same period last year. However, a shortfall of 3.1 million bales was expected during the crop season 2016-17, he added.

He was of the view that ginners would not be affected as lint import was being made on technical grounds. There should be a scientific mechanism to make a correct assessment of the cotton crop size as wrong assessment may have an adverse impact on the interests of stakeholders particularly ginners and growers, he added.

International cotton prices were hovering around 69.50 to 71 cents per pound, while country’s lint prices are in the range of Rs 6,000 per maund and Rs 6,050 per maund, he said. “Due to a quality drop, the mills were importing cotton on price parity with Pakistani cotton, it was not possible to import more than 60,000 bales,” he added.

Rabbani said that the lint price would remain stable after steadiness in the supply line and better influx of seeds into the ginneries. Moreover, demand for cotton yarn and cotton cloth from China was expected to remain on the higher side which is likely to keep cotton demand high.