Ginners stop buying cotton, growers upset at subdued business on cotton market

In the absence of proper trade of cotton, growers were confused as ginenrs have stopped buying cotton to protest imposition of tax on textile products, dealers said on the cotton market on Tuesday. The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 9,900, they said.
There is no trade so seeds cotton prices in Sindh and Punjab were unchanged at Rs 3,900-4,600, they said. In ready business activity came down. Nearly 5000 bales of cotton changed hands between Rs 9,500-10,200, they added. According to the market sources, today was sixth day of dullness as ginners were not purchasing cotton from the growers to oppose tax on the textile items. Mills are also upset because the ginners were not showing any flexibility by cutting down asking prices, they said.
They (mills) expect that arrival of Indian cotton is likely to make the process of normal business smooth, they said In the meantime growers are facing tough time in the absence of routine business and hoping that the government may intervene to ease the situation, they added. It is expected that the ginners may meet finance minister this week to discuss the issue, they said.
The following deals were reported: 300 bales of cotton from Mir Pur Khas sold at Rs 9700, 400 bales from Upper Sindh at Rs 10000, 200 bales of cotton from Mian Channu at Rs 9500, 400 bales of cotton from Haroonabad at Rs 9600, 200 bales from Chichawatni at Rs 9800, 400 bales from Ali Pur at Rs 10000, 400 bales from Uch Sharif at Rs 10000, 600 bales from Rajan Pur at Rs 10000, 1000 bales from Rahim Yar Khan at Rs 10000 and 1000 bales from Khan Pur at Rs 10000-10200.

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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 17.01.2011

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37.324 Kgs         9,900      120       10,020       10,020             NIL

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Equivalent

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40 Kgs            10,610      120       10,730       10,730             NIL

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