KCA cuts spot rates by Rs 100, no deals on cotton market

KARACHI (May 18 2010): Official spot rate down on the cotton market on Monday amid lacklustre business, dealers said. The Karachi Cotton Association (KCA) official spot was lower by Rs 100 to Rs 6600, they said. In the ready business, not a single deal finalised during the day, they said. According to the market sources, the cotton sowing is on full swinging but it is most likely that sporadic supply of irrigation water may delay sowing.

In the meantime, growers are happy over the expectations of rise in the cotton production for the coming 2010-11 season, some analysts said. They said that discussions are continue to settle down the tussle among the textile stake-holders because both spinners and value-added sector are not happy over the last week's decision as spinners oppose any kind of levy on exports of cotton yarn and value-added sector is demanding 30 percent Regulator Duty on the instead of 15 percent.