RECORDER REPORT | 12 March, 2019
KARACHI: Selective buying was seen on the cotton market on Monday as buyers showed less interest in fresh deals, dealers said.
The official spot rate unchanged at Rs 8,600, they added. In the ready session, about 2,600 bales of cotton changed hands between Rs 8800-8850, they said. Prices of seed cotton in Sindh were at Rs 3000-3500, in Punjab seed cotton prices at Rs 3000-3600 and in Balochistan prices were at Rs 3200-3500, they said.
According to the market sources, mills and spinners failed to make new deals because ginners were not ready to oblige them. The mills were trying to bring down prices at their psychological levels but the sellers were reluctant mainly because of quality reason, they said.
Cotton analyst Naseem Usman said that cotton market to maintain it’s present condition in the near future. Reports showing that India has cut the royalties that local seed companies pay to German drugmaker Bayer AG’s Monsanto unit for the third time in four years.
Prime Minister Narendra Modi’s government has decided to reduce royalties paid by Indian seed companies to Monsanto for its genetically modified (GM) cotton by 49 percent to 20 rupees for a packet of 450 grams, according to a farm ministry order. Cotton prices moved mostly higher in the international markets. (Source: Business Recorder)