Spot rate was down further on the cotton market on Tuesday amid modest trading as confusions rising over the issue of Gas Infrastructure Development Cess (GIDC), dealers said. The official spot rate continued downfall, losing more Rs 50 to Rs 5400, dealers said. In the ready session, only 3000 bales changed hands between Rs 5175-5700, they said. Seed cotton prices in Sindh were at Rs 2100-2700 and in Punjab at Rs 2500-3100, they said.
Market sources said that on the one hand, the ginners were not interested in larger selling due to very little stock with them. But the mills were trying to make deals as much as they can, cotton analyst Naseem Usman said that millers were also hoping for early arrival of new crop. Besides, he said that many traders were assuming that the Gas Infrastructure Development Cess (GIDC) is an anti-business initiative and would lead to massive closure of export oriented textile industry.
Some other experts said that the GIDC issue may cause unemployment and law and order situation in the country. They said that such harsh steps which would not only raise the cost of doing business, overburden the taxpayers and may cause for complete shutdown of the export-oriented textile industries. The following deals reported: 200 bales of cotton from Dharki at Rs 5700 (conditional) same figure from Burewala at Rs 5175, 1000 bales from Khanewal at Rs 5350, 400 bales from Main Chano at Rs 5550 and 1200 bales from Vehari at Rs 5350-5700 (conditional), 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 25.05.2015
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37.324 Kgs 5,400 150 5,550 5,600 -50
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Equivalent
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40 Kgs 5,787 160 5,947 6,001 -54
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