Pakistan: Cotton Prices may Slide Fear Traders

While the Trading Corporation of Pakistan has stopped trading local cotton since August 15, local growers and ginners are apprehensive of not fetching remunerative prices for their cotton.

Traders sought Government intervention and felt that the price fall should be averted so as to save the growers.

TCP, however is active on selling cotton to foreign buyers at present. In all, it is reported to have sold 1.148 million bales, of which 100,000 bales were exported.

Meanwhile, sources said about 50,000 bales of fresh crop has arrived at the Mandis or markets indicating slow picking but would soon gain momentum.

Cotton production is likely to touch 15 million bales, but traders are concerned about the quality and contamination-free state of the output.

If these two major factors are taken care of, then the crop can gain valuable foreign exchange for the country, indicate industry sources.