Mills and spinners, who were keenly waiting for federal budget 2016-17, got some satisfied after announcement of several incentives, dealers said on the cotton market on Friday. The official spot rate was lower by Rs 50 to Rs 5,550, dealers said. In Sindh, seed cotton prices were at Rs 3000-3100, per 40 kg, they said. In ready session, around 1000 bales of cotton changed hands between Rs 5400-5600, they said.
Cotton analyst, Naseem Usman said that several packages and incentives announced in the federal budget. The cotton traders and growers would take benefits of these incentives in the coming days, he added. According to budgetary documents released here on Friday, the agriculture sector is targeted to grow by 3.5 percent on the basis of expected contributions of important crops (2.5 percent), other crops (3.2 percent), cotton ginned (2.5 percent). The government has allocated Rs 150 million for Textile Industry Division under the Public Sector Development Programme (PSDP) for the fiscal year 2016-17 for new development schemes.
Reuters adds: ICE cotton futures settled down for the fourth straight session on Thursday on favourable weather conditions and a stronger dollar. Cotton contracts for July settled down 0.3 cent, or 0.47 percent, at 62.87 cents per lb. It traded within a range of 62.81 cents and 63.67 cents a lb. Total futures market volume fell by 3,277 to 28,424 lots. Data showed total open interest fell 1,582 to 201,195 contracts in the previous session. The following deals reported: 248 bales of cotton from Muhammadpur dewan at Rs 5400 and 600 bales from Alipur at Rs 5500-5600, they said.

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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 1-1/32"
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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 02-06-2016
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37.324 kg          5,550      135        5,685         5,735           - 50
Equivalent
40 kgs             5,948      145        6,093         6,147           - 54
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