There seems to be no end to the falling cotton prices in the local as well as world markets amid forecasts of bumper crops for most of the cotton producing countries with reduced demand for natural fibre.
Floor brokers said that on the domestic front phutti (seed cotton) arrivals are gaining momentum but slower off-take is keeping prices under pressure.
They added that the issue of gas and power is a major factor which is inhibiting textile spinning industry to take ‘long position’ in their cotton stocks. Moreover, sluggish demand for cotton yarn and slow exports are also depressing market, brokers added.
According to world forecasts, India is expecting a bumper cotton crop of around 40 million bales and Pakistan is also giving strong indications of harvesting around 15m bales this season.
