Exporters and mills both were busy in fresh purchasing of cotton after the news of withholding and sale taxes imposed on imports of cotton, dealers said on the local market on Friday. The official spot rate was unchanged at Rs 6,450, dealers said. Seed cotton prices in Sindh were unchanged at Rs 2,300-2,900 and in Punjab rates were also at 2,400-3,100, they said. In the ready business, around 20,000 bales of cotton changed hands between Rs 4,800-6,700, they said.
Market sources said that in SRO, five percent withholding tax and two percent sales tax imposed on the import of cotton. Cotton Analyst Naseem Usman said that as a whole textile sector was under pressure as they had to pay more different taxes. The mills were expecting prices might increase in the near future, he added. "Expectations for higher cotton crop in the coming days are good but before time, we are not able to guess about the total figure because during the present session we could not achieve target of 14.4 million bales due to heavy rains in Punjab," other analysts said. Now, it is expected that country may get around 13 million bales.
They also said that exporters were likely to continue buying of cotton amid rising fears of further increase in prices in days to come. Another report said that cotton crop would be cultivated over 7.648 million acres of land to produce about 14.1 million cotton bales during the coming crop season of 2013-14 to fulfil the domestic requirements as well as to export.
According to the Reuters, the NY cotton spiked to a nine-month high on Thursday as strong weekly US export data indicated that recently high prices had not deterred demand and bullish speculators have been drawn back to the market. The most-active May cotton contract on ICE Futures US rose 0.91 cent, or 1.1 percent, to settle at 85.29 cents per pound, after earlier surging as high as 85.97 cents a lb - its highest since May 2012.
The following deals were reported: 1,000 bales from Shahdad Pur at Rs 5,900, 400 bales from exporter to mill at Rs 6,375, 3,400 bales from Rohri at Rs 6,350-6,600, 1,600 bales from Chichawatni (Exporter) at Rs 4,800, 600 bales from Mian Chano (Exporter) at Rs 4,800, 800 bales from Arif Wala at Rs 6,000, 3,900 bales from Jahanian at Rs 6,300/6,550, 400 bales from Faqir Wali at Rs 6,350, 800 Gojra at Rs 6,400, 400 Haroonabad (Condition) at Rs 6,400, 200 Sahiwal at Rs 6,500, 400 bales from Jalal Pur at Rs 6,600, 400 bales from Ali Pur at Rs 6,600, 400 bales from Ahmed Pur at Rs 6,600, 400 bales from Ali Pur at Rs 6,600, 2,600 bales from Khanewal at Rs 6,600, 600 Jahania (Condition) at Rs 6,700, 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"
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MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
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Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference
For Price Ex-Karachi Ex. KHI. As Ex-Karachi
on 28.02.2013
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37.324 Kgs 6,450 155 6,605 6,605 NIL
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Equivalent
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40 Kgs 6,912 155 7,067 7,067 NIL
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