Transaction at low level as ginners not ready to lower asking prices

Slow trading was seen on the cotton market on Monday as the ginners were not prepared to bring down prices, instead they are hoping for better profit due to shortage of crop, dealers said.
The Karachi Cotton Association (KCA) spot rate was unchanged at Rs 10,800, they said. Phutti prices in Sindh and Punjab were unchanged at Rs 4200-5000, they said. In the ready business about 3,000 bales of cotton changed hands between Rs 10,400-11,000, they said.
According to the market sources, higher prices of phutti caused small business and it looks that the ginners were not ready to cut down prices due to short crop, they said. They said that country has to increase cotton production to fulfil the requirements, if country improves its cotton output, it may be possible that instead of import, it will start exports in the coming days. Prime Minister asked the cotton growers to use modern technology so the country would be able to set the target of 20 million bales of cotton, which is not impossible. He also assured the Pakistan Cotton Ginners Association (PCGA) that 3.5 percent withholding tax issue on the agriculture products would be settled down very soon.
The following deals were reported: 200 bales of cotton from Tando Adam sold at Rs 10400, 200 bales of cotton from Chichawatni at Rs 10400, 400 bales of cotton from Bahawalpur at Rs 10500, 400 bales of cotton from Shah Jamal at Rs 11000, 200 bales of cotton from Fazilpur at Rs 11000, 1000 bales of cotton from Sadiqabad at Rs 11000, 200 bales of cotton from Kasowal at Rs 11000, 400 bales of cotton from Noorpur at Rs 11000, 200 bales of cotton from Yazman Mandi at Rs 11000.

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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 29.01.2011

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37.324 Kgs        10,800      120        10,920      10,920             NIL

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Equivalent

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40 Kgs            11,574      120        11,694      11,694             NIL

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