Cotton spot rate remains unchanged

Trading has started on the cotton market on Wednesday as government has eased the lockdown.

Market sources said that traders are optimistic that activities will fully resume soon. They also said that for the last one and a half months there was no trading in the market.

Cotton Analyst Naseem Usman appreciated the decision of federal cabinet in which they categorically said that the support price of cotton should be fixed after thorough consultations with all the stakeholders in order to encourage farmers to sow more and more cotton as its cultivation has been woefully declining. Prime Minister Imran Khan, who chaired the cabinet's meeting, was in favour of giving subsidies on cotton seed and fertilizer, so that poor growers could be benefited.

Earlier, Naseem said that farmers were very upset with the rejection of the support price by the Economic Coordination Committee. There are conflicting reports regarding cotton sowing. Some people think that cotton sowing is going well while others think that it is not going well. Farmers are demanding that ECC decision regarding announcement of cotton support prices should be reviewed.

Naseem Usman said that Spot Rate remained unchanged at Rs 8600 per maund. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8600 per maund. The rate of polyester fiber was decreased by Rs 3 per kg and was available at Rs 157 per kg.

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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 1-1/16"
                    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  12-05-2020
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37.324 kg         8,600       160         8,760        8,760            NIL
Equivalent
40 kgs            9,217       171         9,388        9,388            NIL
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