Prices static in lacklustre cotton market

Czlmness prevailed in the cotton market on Monday as the spot rate maintained the overnight levels in lacklustre business, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 2650, without upcountry expenses.
According to the market sources mills and ginners both were on the sidelines to analyse the developing situation. The ginners are not happy about the news of imports as they fear that prices will come down of local cotton, which will less their profit.
On the other hand spinners were relaxed and buying fine lot of cotton from the ginners. The upward trend in the NY cotton futures also a factor which may help in stabilising the prices in the local markets, they said.
Cotton circle is interested in the output of the meeting of Raw Cotton Committee of Federation of Pakistan Chamber of Commerce and Industry due on Tuesday, to discuss the cotton related matters ie imports of cotton through Wagah border and its impact on the local market. It is also expected that some matters relating to the cotton policy may be discuss during the meeting, they said.
The body is expected to discuss and review the proposals to bring out the textile industry from present crisis. Cotton pundits were of the opinion that instead of blaming each other for decline in exports of the textile products, its high time for both the government and textile industry must take some realistic and practical measures to solve the crisis.
Not a single deal was reported on Monday.

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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      2650.00        50                    2700.00

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

40 Kgs         2840.00        50                    2890.00

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