Prices failed to sustain firm trend on the cotton market on Monday in the process of lacklustre trading activity, dealers said. The official spot rate was down by Rs 50 to Rs 5,200, dealers said. In Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900, they said. As a result of lack of buying interest, only one deal finalised from Ghani Goat at Rs 5150, they said.

Some experts said that buyers were not so much keen to make new deals, but on the other hand, sellers were also looking in search of recover their losses after rains in the Punjab and other parts of the country. The country is facing shortage of fine quality due to damage to the crop, they said and adding that growers are in financial losses, they observed. The government did not provide desired relief packages, so that most of the growers allowed insect pests to flourish by not using costly pesticides to protect the crop amid slump in prices of seed cotton, other analysts said.

Report showing that only 41 ginning units are currently operating in the Punjab province, which accounts for the bulk of production, and six in Sindh, compared to 135 and 21 respectively last year. According to the report, the main reason behind the fall in cotton output is rapid climate change in Punjab province.

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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 12-03-2016

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37.324 kg         5,200       135        5,335         5,385            -50

Equivalent

40 kgs            5,573       145        5,718         5,771            -53

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