Cautious buying was witnessed on the cotton market on the first day of year 2017, dealers said on Monday. The official spot rate was unchanged at Rs 6250, dealers said. In Sindh, seed cotton prices were at Rs 2600-3250, they said that in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, they added.
In the ready session, around 4,000 bales of cotton changed hands between Rs 6000-6500, they said. According to the market sources, local prices are in line with the international track, where rates went up sharply and it looks that present trend may continue in the coming days.
In India, there are speculations about shortage of cotton production, which caused price flare-up, they said. Besides, All Pakistan Textile Mills Association (APTMA) has appealed to the government for removal of four percent import duty on raw cotton.
Cotton analyst, Naseem Usman said that country may achieve approximately, 10.8 million bales during the current season. Whereas, he observed that the requirement of Pakistan's textile industry is not less than 14.5 million bales at the moment.
The cotton traders were importing cotton from India and other sources to fulfil their requirements, other analysts said. They also said that since Indian government has allowed the Cotton Corporation of India (CCI) to procure around 1.5 million bales, lint prices picking up, this is creating some concerns among local spinners, as well.
The following deals reported: 400 bales from Mianwali sold at Rs 6000, 600 bales from Faqirwali at Rs 6400, 772 bales from Bahawalpur at Rs 6400 and 2000 bales from Sadiqabad at Rs 6500, dealers 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 31-12-2016
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37.324 kg 6,250 135 6,385 6,385 NIL
Equivalent
40 kgs 6,698 145 6,843 6,843 NIL
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