Lacklustre conditions on cotton market

Listless business was seen on the cotton market on Saturday. Nearly 1200 ginning factories had stopped work, to protest against the fall in the rates. The government is, according to the Pakistan Cotton Ginners Association (PCGA) not taking preventive measure to save the textile industry from the prevailing crisis, dealers said.
The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 3075, dealers said. In the ready business, cotton traded at Rs 3150, they said. Phutti prices in Sindh and the Punjab were at Rs 1450-1500, they said. According to the market sources, the mills have so far imported nearly 1.3 million bales of cotton from India and other countries to solve the local shortage problem.
Commenting on the precautionary measures taken by the concerned circle to bring stability in the prices hit by the news, that said that the country is importing cotton to meet the mills' demand. The report has slowed down cotton trade activity and the official spot rates fell by 100 at Rs 3075, the said. In ready business the prices also come down and lost Rs 100 to Rs 3,125 per bales of 37.3324 kg, some dealers said.
Chairman Cotton Brokers Forum, Usman said that rates of a good quality of cotton in Punjab lost Rs 150 per mound due to declining demand. Cotton ginning factories have closed down their operations across the country on the call of PCGA till Sunday (November 25) as a "protest" against the contamination, he said.
He also said that the PCGA has also convened a general body meeting in Multan on November 25, to discuss the market situation over the reports of import of about two million bales in the country.
The following deals were reported: 1000 bales from Bhawalpur and 400 from Ahmedpur East sold at the same rate at Rs 3150, they said.

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The KCA Official Spot Rate for Local Dealings in Pak Rupees

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FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"

 MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

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Rate           Ex-Gin     Upcountry    Spot Rate Ex-Karachi

for            Price                        Sales Tax @ 15%

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37.32 Kgs      3075.00        50                    3125.00

Equivalent-------------------------------------------------

40 Kgs         3295.00        50                    3345.00

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