Cotton rates plunge by Rs 500 on lower demand

Cotton price has plunged by Rs 500 to Rs 6,200 per maund in the last two days on low demand and large supply, brokers said Wednesday.

A leading broker and Chairman Cotton Brokers Forum Naseem Usman said that cotton supply from Punjab has increased in the market while mills are not buying the lint.

He said cotton price has also declined by Rs 400 to Rs 6,200 in Sindh and therefore, the difference of price between these provinces have been removed.

Usman said that people in cotton business also take leave in the last ten days of Ramazan which also slows down activity.

In addition, the decline in the demand for cotton yarn has also weakened the market, he added.

However, spot rates of Karachi Cotton Association (KCA) remained stable at Rs 6,500 per maund.