KARACHI -- There was a surge in cotton prices on Tuesday despite the fact that the government has removed all duty and taxes on lint imports.
The government took the decision to help meet the wide gap demand and supply gap caused by short crop.
Buyers remained focused on quality cotton and trading activity could not expand owing to short supply of high quality lint, brokers said.
According to cotton analyst Naseem Usman the removal of duty and taxes on import of cotton will provide relief to the textile industry and improve their liquidity.
The government took the decision in anticipation that by January 15 entire cotton stocks would be lifted by ginners and there would be no damage to the interest of growers, he added.
The opening of the Torkham border for import of cotton from Central Asian States will also help reduce freight against imports of cotton from US, Brazil or African countries.
Cotton experts urged the government to prepare a new cotton seed variety that is heat and pest...