Cotton traders welcomed the new five-year textile policy amid hopes that it would accelerate the pace of mill buying in the coming sessions to match the anticipated boost in exports.

Analysts say the export target of $25 billion by 2014 is a bit ambitious, but could be achieved if the fallout of the local factors, notably higher input costs and availability of lint at competitive rates are neutralized by the incentive package including a massive subsidy of Rs. 87 billion. The activity is expected to further pick up during the next couple of sessions after spinners and mills are expected to indulge in renewed buying to build-up long positions at the current levels.

Cotton prices, however, remained stable around the previous levels as most of the deals were finalized around an average rate of Rs 3,450 per maund amid relatively slow activity. Most of the deals in the Punjab varieties were quality based but Sindh lint was sold at uniform rate of Rs 3,450 to Rs 3,475 per maund. Official spot rates were marked down by Rs 50 per maund on late selling by some ginners.