Cotton spot rate down to Rs 8500

KARACHI: Pakistan Cotton Ginners Association (South Zone) has asked the ginners to resume their operations from July 1, instead of June 1. Market sources said that ginning factories start their operations usually from June 1 because this year ginners had the stock of 5 lac bales. PCGA has asked the ginners not to start the buying of Phutti until government fully abolished the excise fees like Balochistan or fees should be brought back to Rs 4. The government had increased the excise fees from Rs 4 to Rs 8. Cotton Analyst Naseem Usman told that traders in the cotton market are hopeful that reporting of the deals will be started from the first week of June. He also said that cotton crop is facing severe threat of locust attack. He said that Plant Protection Department of Government of Sindh is working on saving the cotton crop from the attack of locust. He urged that both provincial and federal governments should work together to save the cotton crop from the locust attack. Naseem said that there are reports that condition of cotton crop in Lower Sindh is satisfactory but there are chances of severe attack of locust in Upper Sindh and Punjab. He further said that ginning factories will partially resume their operations in Sindh from June 15. Naseem Usman said that Karachi Cotton Association has decreased the spot rate by Rs 100 per maund and closed it at Rs 8500 per maund. The rate of cotton in Sindh and Punjab is in between Rs 7000 to Rs 8500 per maund. The rate of polyester fiber was decreased by Rs 2 per kg and was available at Rs 155 per kg.

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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 1-1/16"

                    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  30-05-2020

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37.324 kg         8,500       160         8,660        8,760         -100/-

Equivalent

40 kgs            9,109       171         9,280        9,388         -108/-

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