Cotton prices in local markets drop sharply after announcement from APTMA that they are closing down their textile mills reducing the demand.
Cotton market opened after eid closures and on first day of trading session the price drop sharply by Rs 300 to Rs 6100 per maund, said chairman Cotton Ginners Forum, Ahsanulhaq from Rahim Yar Khan.
Bearish trend witnessed in the cotton market since last two weeks and on average price of cotton has been declined by Rs 900 per maund, he said. The continuous bearish trend in cotton market has perturbed the growers and people attached to the cotton circles.
The price of cotton has been down because of the global price which also depicted slow and diminish trend. While demand domestically also fell sharply after APTMA’s decision to close down the mills over dull attitude of the government, delay in releasing the refunds and higher cost of doing business made millers in jeopardy.