With growing economic uncertainty the worldwide and liquidity crunch faced by the spinners owing to little off-take of yarn and fabric, the cotton market remained lacklustre.

Floor brokers said that growing concern about economic instability and worldwide and domestic crises depressed sentiment where activity remained restricted to a small buying lot.

The Karachi Cotton Association (KCA) has to further cut its spot rates for second consecutive day by Rs50 to Rs2,825 per 40kgs (ex-gin price) and to Rs2,925 (ex-Karachi rate).

Though the crop prospects are bright because it is being estimated that it would meet domestic demand of around 14 million bales, slower economic activity and liquidity crunch faced by the industry at large is inhibiting much needed flare and activity in the market.

Cotton analyst Naseem Usman told Dawn that if current price level is maintained, the Pakistani textile exporters would easily keep their market share in the western markets where economic slowdown is more conspicuous and consumer index is consistently falling.

However, liquidity crunch in the industry is hurting market activity where buying activity remained slow and restricted. Furthermore, the outcome of stakeholders’ meeting expected on Wednesday in Islamabad to fix cotton procurement price for TCP is also awaited.

Holding back of stocks by ginners is another factor which is keeping market sentiment depressed.

According to market reports, around 2.4 million bales are presently held by ginners in the hope of getting better price once the TCP starts is operations.

The following transactions materialised on ready counter on Tuesday: 1,000 bales from station Sanghar done at Rs2,690, 1,000 bales from Hyderabad done between Rs2,785 to Rs2,800, 800 bales from Sadiqabad done around Rs2,850 to Rs2,900, 2,000 bales from Ahmed Pur done at Rs2,850 to Rs2,875, 2,000 bales from Shadan Lund done at Rs2,850, 2,600 bales from Lodhran done at Rs2,850, 2,000 bales from Rajan Pur done at Rs2,850, 400 bales from Taunsa Sharif done at Rs2,850, 800 bales from Rahim Yar Khan done at Rs2,850 to Rs2,900, 400 bales from Khan Pur done at Rs2,850, 800 bales from Liaquat Pur done at Rs2,850, 2,000 bales from Uch Sharif done at Rs2,850, 400 bales from Jalal Pur done at Rs2,850, 400 bales from Dera Ghazi Khan done at Rs2,900, 1,000 bales from Bahawal Nagar done at Rs2,700, 1,000 bales from Haroonabad done at Rs2,700, 2,000 bales from Bahawalpur done at Rs2,850, 1,000 bales from Yazman done at Rs2,850, 800 bales from Shah Jamal done at Rs2,850, 400 bales from Mongi B done at Rs2,800, 400 bales from Burewala done at Rs2,750, 2,000 bales from Ali Pur done at Rs2,850, 200 bales from Sahiwal done at Rs2,750, 400 bales from Layyah done at Rs2,815 and 200 bales from Arif Wala done at Rs2,750.