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KARACHI (May 27 2010): No change was seen in the obtaining scenario on the cotton market on Wednesday as both buyers and sellers were waiting for any outcome of several meetings of cotton related circles and the government officials to settle the Regulatory Duty issue, dealers said. The Karachi Cotton Association (KCA) official spot rate was saved from further decline as it did not show any change at Rs 6,300, they said.
Some cotton analysts said that it is very disappointing situation that after many discussions between the government and the textile tycoons there was no concrete solution for the Regulatory Duty (RD) issue, which is not only hurting the cotton business but textile workers are suffering a lot.
Exports of cotton yarn is causing unemployment in the country, where the small growers are already living in poor conditions and it is nothing new that many are taking one time meal in a day in the country. It is also a fact that most part of our workforce belong to textile sector so the question arises is anybody at home that to settle the present issue on the textile sector?, they asked.
Besides, acute yarn shortage has badly affected exports and several value-added textile units are on the verge of closure, which would result in large scale unemployment in the country, they observed. On Tuesday the US cotton futures finished modestly lower, but remained within a large sideways range developing since late February as dollar gains weighed on fibre prices amid fears European credit problems could hit the broader economy.
The key July cotton contract on ICE Futures lost 0.18 cent to close at 82.07 cents per lb. The contract traded between 81.15 and 82.27 cents. July contract volume stood at 10,991 lots by the settlement. A solo deal of 800 bales of cotton (mill to mill) done at Rs 6,300, dealers said.
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