Gloomy condition prevails upon the cotton market as reported on Friday due to the absence of adequate buyers. Falling price of cotton along with poor withdraw of grey cloth and yarn continued to degrade the proceedings.
The ginners are under immense pressure with the absence of adequate demand as they are holding stocks of substantial quality unsold cotton. Equally, growers of seed cotton or phutti too are in a fix since the falling price is hardly capable of meeting their production cost, as reported by a broker.
In the words of a reputed cotton broker, Naseem Usman, at present, the whole cotton economy inclusive of the textile sector is undergoing severe crisis and eventually the circulation of few billion rupees went down as each segment is now lacking activity. Over millions of handlooms in Faisalabad are shutting down due to smuggling of grey cloth from India and China which is making the local production range uncompetitive.
For the 3rd consecutive session, the New York cotton closed easy since all other future contracts lost their ground.