Cotton spot rate cut by Rs 50 amid lacklustre trade

KARACHI (June 08 2010): The official spot rate drifted lower on the local cotton market on Monday in process of lacklustre trading, dealers said. The Karachi Cotton Association (KCA) official spot rate was reduced by Rs 50 to Rs 6,350. In the ready business a deal was finalised from Burewala at Rs 6500 during the day, they said.

Market sources said, as was expected, the ministry of textile has allowed conditional duty-free export of cotton yarn.The spinners may feel some relief after this move by the ministry. On the other hand, the value-added sector is likely to show some impatience over the exports of cotton yarn as according to them, exports of cotton yarn is causing unemployment and prices rise, as well, they said.

Some days ago, the news emerged that the ministry of textile may allow conditional export of cotton yarn with a minimum price barrier of 3.5 dollar per Kg. It is most likely that the prices may go up in the near future, they said.