CottonLocal market in the last week witnessed a significant drop in cotton prices due to ongoing monsoon weather and rains. Ginners stopped buying rain affected cotton and as a result the factories stopped their operations. Ginners who had phutti in stock started demanding high rates. Trading volume also decreased due to uncertainty among ginners and traders of phutti, and significant decrease in the rate of cotton. Transportation costs also increased due to unavailability of vehicles as most of the trucks are busy in carrying sacrificial animals. Market sources said the cotton trade may be resumed after Eid holidays. The price of cotton is unlikely to decline any further due to rising trend in international markets. After decreasing by Rs400 to Rs500 per maund, the rate of cotton in Sindh is Rs12600 to Rs12800 per maund. The rate of Phutti after decreasing Rs300 to Rs400 per 40 kg is Rs5200 to Rs5700 per 40 kg. The rate of Banola is Rs1700 to Rs1800 per maund. The rate of cotton in Punjab after decreasing by Rs600 to Rs700 per maund is Rs13000 to Rs13200 per maund while the rate of Phutti is in between Rs5200 to Rs6100 per 40 Kg. The rate of Banola is in between Rs1900 to Rs2000 per maund. In Balochistan three ginning factories are operational. The rate of cotton in Balochistan is in between Rs12900 to Rs13000 per maund while the rate of Phutti is in between Rs5700 to Rs5800 per 40 Kg. The rate of Banola is in between Rs1900 to Rs2000 per maund. Exports witnessed a decline of 34 percent as compared to last week, the weekly USDA export report said, however, the market remained stable due to a decrease in the rate of dollar. Although, the rumours of trade conflict between China and India is affecting the rate of cotton. An increasing trend was witnessed in the rate of cotton in Brazil, China and Australia while significant increase was witnessed in the rate of cotton in India because India had signed an agreement with Bangladesh for selling ten lac bales of cotton as a result of which the rate of cotton in India increased by Rs800 to Rs900 per candy (356 kg). Moreover, Cotton Cooperation of India has increased the rate of cotton by Rs200 to Rs300.China has started selling of old stock of cotton. A meeting of the Cabinet’s Economic Co-ordination Committee chaired by Finance Minister Shaukat Tareen has approved the fixing of price of cotton at Rs5,000 per maund, said Pakistan Cotton Centre Research Institute.