KARACHI, June 11: The post-budget session on the cotton market on Monday was eventless as both ginners and spinners were still in the process of having an overview of the duty concessions and tax adjustments.
However, leading brokers said that ginners, spinners and mills were expected to be beneficiaries of the fresh incentives given to the textile sector in an apparent effort to boost exports.
“But it could well be long process beginning with the new cotton season provided the new crop is in line with the official projections,” they said.
“The widely-rumoured textile package is not in line with the demand of textile sector but effort has been made to come close to the standing demands of the industry” some others said.
Duty concessions for the import of new machinery or parts, loan facility and some other concessions are expected to enhance the competitiveness of the textile sector on the world markets, they added.
Official support price for the next year’s cotton crop had already been raised by Rs50 per 40 kg to give needed push to the grower to produce a healthy crop, they added.
Floor brokers said normal activity was expected to be resumed on the market during the next couple of sessions as by that time relevant quarters would have fully studied the new fiscal measures relating to cotton and textile sectors.
Meanwhile, spinners are awaiting the final crop size and figures of unsold stock with the ginners but there is no word from the Pakistan Cotton Ginners Association. The figures should have been released by the first week of this month to enable spinners chalking out their future plan.
There was no change in the official spot rates and were quoted unchanged at Rs2,600 per maund in the absence of any feedback from the ready market.
Ready off-take was slow as buyers and sellers kept to the sidelines.
