Trade activity improved on cotton market on Tuesday in the process of improved trading activity, dealers said. The official spot rate was unchanged at Rs 8800, they added. Rates of seed cotton per 40kg came down from Lower Sindh was available at Rs 3700-3900, they said. Binola per maund was also drifted lower at Rs 1600-1650, they said. Approximately, 7000 bales of cotton changed hands between Rs 8650-9200, they said.

Market sources said that arrivals of seed cotton improved in Sindh. Cotton Analyst, Naseen Usman said that against the imposition of General Sales Tax (GST) the Pakistan Cotton Ginners Association (PCGA) to protest and will close down the ginning factory.

Besides, the Karachi Cotton Association strongly opposes the proposal of the government to impose 10 percent Sales Tax on raw cotton at local stage in the Federal Budget 2019-20 with a view to generate its revenue.

The KCA has always strongly opposed the proposal to impose Sales Tax on raw cotton, as it discourages production and inhibits the smooth flow of exports and runs counter to the laid down government policy of encouraging cotton trade in the country.

Adds Reuters: Cotton prices rose on Monday to hit its highest in more than a week, as investors rolled over their positions from the front-month contract, while a stronger grains market further supported the natural fiber.

The most active cotton contract on ICE Futures US, the third-month December contract, rose 0.67 cent, or 1%, to settle at 66.42 cents per lb.

Total futures market volume rose by 916 to 35,096 lots. Data showed total open interest fell 11,012 to 193,423 contracts in the previous session.

Following deals were reported: 2400 bales of cotton from Ghotki sold at Rs 9200, 1900 bales from Rahim Yar Khan at Rs 8650-8850 and 1000 bales from Alipur at Rs 8800 and 2000 bales from Lower Sindh (new crop) at Rs 8400-8500, 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 1-1/16"

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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 17-06-2019

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37.324 kg          8,800      160          8,960      8,960             NIL

Equivalent

40 kgs             9,431      171          9,602      9,602             NIL

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