KARACHI: The Spot Rate Committee of the Karachi Cotton Association has decreased the spot rate by Rs 100 per maund and closed it at Rs 8300 per maund.
Market Sources told that spot rate decreased because there is hardly any business in the market adding that decreasing of spot rate is a part adjustment before the arrival of new crop.
Cotton Analyst Nassem Usman said that ginning factories will fully resume their operations from July 1.
He also said that Muhammad Jawed Bilwani, Chief Coordinator & Former Chairman of Pakistan Hosiery Manufacturers & Exporters Association (PHMA) in its recent statement said that government must not repeat the grave mistake of last year and should consider ground realities and act upon the proposals and suggestions of exporters, otherwise, the government's plan to enhance exports will be completely shattered.
Bilwani articulated that even after severe resentment of exporters, the government in the last budget imposed 17 percent sales tax which brought detrimental effects on the Value-Added Textile Industry which severely hit their liquidity and precious funds worth billions of rupees were stuck up with the government. Paying the refunds to exporters against the sales tax collected by the FBR which is liquidity of the exporters is not a realistic relief as government releases part payments of the exporters while major amount of the sales tax refund are unnecessarily held by government.
During the current financial year, exporters who have promptly filed their claims of sales tax refunds have not yet received their claims which questions the commitment and refund system of FBR
Meanwhile, Chairman All Pakistan Textile Mills Association Sindh-Balochistan has demanded that Prime Minister Imran Khan and the Economic Managers to reduce the indigenous gas tariff for the five export oriented sectors in line with major reduction in oil prices in the international market to recover from the negative impact of Coronavirus (COVID- 19) on the economy and exports.
Naseem said that 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 also said that Spot Rate Committee of Karachi Cotton Association has decreased the spot rate by Rs 100 per maund and closed it at Rs 8300 per maund.
The rate of cotton in Sindh and Punjab is in between Rs 6500 to Rs 8400 per maund. The polyester fiber was was available at Rs 155 per kg.
===========================================================================The KCA Official Spot Rate for Local Dealings in Pakistan Rupees--------------------------------------------------------------------------- FOR BASE GRADE 3 STAPLE LENGTH 1-1/16" MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL===========================================================================Rate Ex-Gin Upcountry Spot Rate Spot Rate Difference For Price Ex-Karachi Ex. KHI. As Ex-Karachi on 06-06-2020===========================================================================37.324 kg 8,300 160 8,475 8,575 - 100/-Equivalent40 kgs 8,895 171 9,083 9,190 - 107/-===========================================================================