Seedcotton prices fell on the cotton market on Monday as mills and exporters remained on the sidelines after news that Indian ministers to review a restriction on fresh cotton exports, dealers said. The official spot rate was unchanged at Rs 5,300, they said.
Prices of seedcotton in Sindh were down by Rs 200-100 to Rs 1700-2200 and in the Punjab rates followed same trend, shedding Rs 200-1500 to Rs 1800-2500, they said. In ready dealings, over 3000 bales of cotton changed hands at Rs 4400-5600, they added. Some dealers said that the cotton business is lacking buying interest these days, no one wants to make any deal and just want to see the developments, they said.
After fresh fall in the seedcotton prices, the ginners were unhappy and trying to sell at the present levels, but the mills, spinners and exporters did not show any interest in fresh purchasing, mainly because to weak economic outlook, other experts said.
According to a report, India will now prohibit fresh cotton exports and permit only quantities already registered but not shipped, the trade secretary said on Monday, fuelling uncertainties as the world's second-biggest producer continues to flip-flop with its trade policy.
Earlier, Indian Trade Secretary Rahul Khullar said a panel of ministers may review a halt on fresh cotton exports from India in two weeks. India's government has flip-flopped on the issue of banning cotton exports. After saying it was lifting a ban on overseas sales of the fibre on the weekend, Khullar said on Monday no fresh exports would be allowed and only the quantity permitted to be sold before the ban will be allowed to be shipped. The following deals were reported: 2000 bales of cotton from Nawabshah sold at Rs 4400-4450, 400 bales of cotton from Sadiqabad at Rs 5500 and 1000 bales of cotton from Rahim Yar Khan at Rs 5600.
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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 10.03.2012
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37.324 Kgs 5,300 130 5,430 5,430 NIL
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Equivalent
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40 Kgs 5,680 130 5,810 5,810 NIL
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