KARACHI: Cotton price has plunged by Rs 500 to Rs 8,500 per maund this week, mainly due to slow buying from cotton mills and exporters, brokers said on Saturday.
Member of Cotton Brokers and Advisory Committee Amir Naseem said that the market has witnessed a declining trade in cotton since past few weeks.
This week, though spinners and exporters are taking interest in local cotton, the weak sentiments still persisted in the market, he added.
He said spot rates of Karachi Cotton Association (KCA) has been fallen by Rs 500 per maund to Rs 8,500 per maund on May 14, 2011.
Amir said that cotton prices have also fallen in China and India during this period. Meanwhile, cultivation for new crop was in full swing in the country as the government has fixed a higher target of 15 million bales for the next season. Similarly, other cotton growing countries have also raised their cultivated area.
Cotton prices ranged between Rs 7,500 to Rs 8,500 per maund in Sindh and Punjab while low quality at Rs 6,500 to Rs 7,000 per maund, he added.
Good quality phutti price was in a short quantity and is being sold in the range of Rs 2500 to Rs 3,000 per 40 kg while binola price also closed lower at Rs 1,050 to Rs 1,000 per maund in Sindh.
He said cotton prices have heavily declined in China and India. NY Cotton futures are also under pressure as crops from Australia, Argentina and Brazil are in the market.
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