Fresh rains in the Punjab and ginners' strike cut down trading activity on the cotton market on Monday, dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,200, they said. In the ready business over 7000 bales of cotton changed hands between Rs 6000-6500 in process of trading, they said.
According to the market sources, trading activity came down due to ginners' strike and rains in the cotton belt of the Punjab. The ginners are on strike and trying to get removed 3.5 percent tax, dealers said. Rains are good for the crop but if it prolong for several days that could damage the crop, how the recent rains are favourable for crop, it is under observation by the experts, who are projecting bumper cotton crop this year, they said.
Despite the fact that ginners' strike continues, the government did not take any measure to solve the ginners' problem, they said. Other experts said that if prices maintain the present level, activity may pick up in the coming days, but increase in the rates may not encourage the buyers, they said.
The following deals were reported: 1500 bales of cotton from Shahdad Pur sold at Rs 6000-6100, 800 bales from Tando Adam at Rs 6000-6100, 1200 bales from Sanghar at Rs 6000-6100, 600 bales fro Mir Pur Khas at Rs 6000-6100, 400 bales from Chichawatni at Rs 6350-6500, 200 bales from Vehari at Rs 6350, 200 bales from Multan at Rs 6450, 400 bales from Hasil Pur at Rs 6500, 200 bales from Haroonabad at Rs 6500, 200 bales from Mailsi at Rs 6500, 200 bales from Baseer Pur at Rs 6500, 200 bales from Darhan Pur at Rs 6500 and 400 bales from Duniya Pur at Rs 6500.
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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 06.08.2011
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37.324 Kgs 6,200 120 6,330 6,330 NIL
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Equivalent
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40 Kgs 6,645 120 6,775 6,775 NIL
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