Some leading mills and spinners were on the sidelines on the cotton market on Saturday, causing a fall in the volume of business, dealers said. The official spot rate maintained overnight level at Rs 4,800, they added. In the ready session, around 15,000 bales of cotton changed hands between Rs 4600-5100, they said. In Sindh, rates were unchanged at Rs 1600 and Rs 2400, in Punjab prices firmly held the overnight levels at Rs 2200 and Rs 2600, they said.
Commenting on the present situation, experts said that the ginners were disturbed despite the government's several concessions to the textile sector. They said that during the last four months exports of textile came down due to several factors. Significant cut in electricity and fuel charges failed to bring any positive change in the cotton business, they said.
Cotton analyst, Naseem Usman said that the all cotton producing countries are facing losses, particularly, since the China is absent from the international market. Notification has been issued for subsidy on power, to provide relief to growers and farmers, analysts said.
Reuters adds: Cotton farmers have rushed to a government loan support program for the first time in five years, according to US Department of Agriculture data, the latest sign that governments are helping to shoulder the burden of a huge price rout. The USDA has so far shelled out over $10.4 million for about 784,200 bales to farmers through loan deficiency payments, according to the agency's most recent unofficial tally, to compensate for depressed world prices.
The following deals reported: 200 bales of cotton from Kandiyaro at Rs 4600, 200 bales from Burewala at Rs 4750, 400 bales from Basti Malook at Rs 4825, 600 bales from Khanewal at Rs 4850-4925, 200 bales from Hasilpur at Rs 4900, 200 bales from Muridwala at Rs 4925, 400 bales from Pir Mehal at Rs 4950, 600 bales from Gojra at Rs 4950, 800 bales from Yazman Mandi at Rs 5000, 1400 bales from Bahawalpur at Rs 5025-5050, 3000 bales from Rahim Yar Khan at Rs 5025-5100, 1000 bales from Ahmedpur at Rs 5050, 1000 bales from Liaquatpur at Rs 5050, 3500 bales from Rajanpur at Rs 5050, 2000 bales from Fazilpur at Rs 5050 and 1000 bales from Sadiqabad at Rs 5050, they said.
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The KCA Official Spot Rate for Local Dealings in Pakistan 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 21.11.2014
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37.324 Kgs 4,800 150 4,950 4,950 NIL
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Equivalent
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40 Kgs 5,144 160 5,304 5,304 NIL
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