Listless activity seen on cotton market

No major activity was witnessed on the cotton market as the government has extended the lock down for another two weeks. Textile sector has appealed the Prime Minister Imran Khan to extend the last date of the payment of gas bills. They were of the view that the entire industry of Pakistan was under locked down due to Covid 19 and major export orders had been cancelled.

Market sources told Business Recorder on Wednesday that spot rate remained unchanged at Rs 8800. The market sources also said that although no trading was seen in Binola. However Binola was available in both Sindh and Punjab at the rate of Rs 1600 to Rs 1800 per maund. Sources also said that cotton seed was not available for trading as ginners had all the stock of Binola. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8800 per maund.

Cotton Analyst Naseem Usman told Business Recorder that due to the lock down exports of textile sector as well as domestic sales had come to a virtual halt, causing a severe liquidity crunch. He said that millers were facing difficulties in paying salaries to their employees. He also said that chairman All Pakistan Textile Mills Association Dr Amanullah Kassim Machiyar has appealed to the Prime Minister Imran Khan to intervene and direct the relevant ministries to issue instructions for deferment of gas bills payments.

===========================================================================
The KCA Official Spot Rate for Local Dealings in Pakistan Rupees
---------------------------------------------------------------------------
                     FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"
                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference
                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi
                                                   on  14-04-2020
===========================================================================
37.324 kg         8,800       160         8,960        8,960            NIL
Equivalent
40 kgs            9,431       171         9,602        9,602            NIL
===========================================================================