KARACHI: The spinners and ginners are not in a mood to give up on the price issue as most of the ginners have already met bank overdraft adjustment. The ginners are now setting their own selling prices.
The war is still on between spinners and ginners as only 3,000 bales from Rahimyar Khan areas were sold at Rs. 2,800 per mound. The textile sector has reduced its intake and is not going beyond export parity level as the daily business is on a decline.
The present warm weather has stopped the pest attack on cotton plants and the entire sindh cotton belt has almost completed crop sowing and the early sown plants are progressing well in the warm weather. Because of this the official spot rates were not changed at all and were firm at the previous level.
New York cotton futures registered a decline of 0.65 to 0.40 cents per lb for both the ruling May and the Forward July contracts respectively.
The talks of higher imports to take care of the local crop shortfall haven't made any difference to the present situation as ginners are not ready to budge.
There is no immediate solution to this situation in sight and the standoff between spinners and ginners is likely to continue for some more time.
