Trading on the cotton market slowed down yesterday because of rising political uncertainty, and depressed demand for lint in the world markets.
Floor brokers said that the ongoing slow cotton procurement drive by the Trading Corporation of Pakistan (TCP) and lifting from ginners are hardly having any impact on lint prices.
Larger cotton crops being expected by major cotton-growing countries, including Pakistan and India, are also depressing lint prices in world markets where inventories are swelling.
Similarly, local ginners are also reported to be complaining of holding huge unsold stocks of cotton which is not only creating storage problem for them but also causing liquidity crunch.
The ginners are also complaining that the TCP is not increasing the pace of lint buying lint though
The TCP entered into contracts with ginners for around 390,000 bales, brokers said. However, the state-owned corporation is carrying out sampling before purchasing.
