Rs 600 per maund fall in cotton prices

Cotton prices in the local market have declined by Rs 600 per maund during the last two trading days, as the All Pakistan Textile Mills Association (Aptma) has threatened to import huge quantity of cotton to meet local demands, traders said.
Cotton prices since the last few weeks were rising due to delay in the picking of Phutti, and last week it touched new peak of Rs 3,500 per maund (37.24 kilograms) during the current season, they added. After the constant rise in the cotton prices, the Aptma decided to import some 60,000 of cotton bales from India through land route on urgent basis, Iran and UAE.
“The Aptma statement has created some panic in the market, resulting in bringing down the cotton price to its previous level”, traders said. Cotton prices have decline by Rs 600 per maund to Rs 2,900 per maund during the last two trading days in the local market, as previously it was being sold at Rs 3,500 per maund on Saturday in the domestic market.
“On Wednesday, the cotton price was slashed by Rs 350 per maund from Rs 3,250 per maund to Rs 2,900 per maund” they added. With the stoppage of rain in Punjab and Sindh, phutti arrival to the ginning factories also has increased, traders said.
Now phutti prices have declined to Rs 1,450-1,475 per maund, which has earlier reached Rs 1,700 per maund, depicting a fall of Rs 225-250 per maund in the domestic market.
“The decline in the prices is temporary and it is expected that in the near future, cotton prices would again shoot up”, said Ghulam Rabbani a leading trader. He said the Aptma statement played a major role in the decline in the cotton prices. However, he said no further slash was likely in the local market, as the local market had already reached much lower than the prices in the international market.
“Cotton prices would again reach Rs 3,100 per maund level in the next few days, which was the real price level of the commodity”, Rabbani said. He said that during the current fiscal, a world-wide shortfall of cotton was expected, which also hit the commodity’s prices.

Copyright Business Recorder, 2007