KARACHI: Higher prices dented cotton trading on Tuesday as a hundreds of bales were sold in the local market, although commodity prices declined in the international market, dealers said.

“There are a lot of buyers in the domestic market, but they want to buy raw cotton at or less than Rs12,000 per maund, while sellers are keen to make any deal of the commodity at more than Rs12,000 per maund, depending upon the quality and variety of cotton,” said Shakeel Ahmad, a cotton analyst.

He said, however, cotton business drastically slowed down due to record high prices, which prompted ginners to hoard the commodity for further higher prices.

The country’s textile sector would have to face an acute shortage of the raw cotton after this month because of a loss of crop in the floods and uncertain deals of cotton imports from India, he said.

“Cotton trading slumped as a few big textile mills and spinning mills are busy in buying costly cotton so as to keep their mills running for the next season 2011/12.” The country’s cotton turnover declined to 1,000 bales of raw cotton (170kg each), including 400 bales each from Sadiqabad and Rahim Yar Khan; and 200 bales from Burewala, ranging in between Rs11,800 and Rs13,000 per maund.