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KARACHI (June 02 2010): Lacklustre business was seen on the cotton market on Tuesday as not a single deal was reported following the prolonged issue about Regulatory Duty (RD), dealers said. The Karachi Cotton Association (KCA) official spot rate was unchanged at Rs 6,400. In the ready business, no trade was seen mainly because of higher prices, they said.
Market sources said that until the uncertainty over the RD resolved, it looks that the buyers may not come forward to finalise the deals. They also said that despite the hue and cry by the value-added sector, over the export of cotton yarn, the government is mulling to conditional export of cotton yarn but the decision is under way.
The persistent standstill over the RD issue, caused jitters among the ginners, who have still 40,000 unsold cotton bales stock, may not gain the expected profit as arrival of new crop may start in the middle of the month, cotton analysts said. The trend in the NY cotton futures was not available as the markets were closed due to Memorial Day holiday, they said.
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