Cotton prices continued to fall yesterday on the back of high flow of phutti (seed cotton), and global factors. However, falling prices also attracted buyers who eagerly replenished their stocks.
Prices on the world markets are depressed on expectations of larger crop in most cotton growing countries.
According to market reports, the Trading Corporation of Pakistan (TCP) has started lifting cotton from ginners in Rajanpur, Fazilpur and Mianwali in Punjab. However, the impact of first purchase of the TCP, which has been directed by the government to procure one million cotton bales, is still awaited.
Brokers said the state-owned corporation has so far entered into contracts for the procurement of over 500,000 bales.
The procurement’s objective is to give growers right price for their produce which has been officially accepted at Rs3,000 per 40 kg for phutti.
