MULTAN: Trading on the cotton market remained restricted on Tuesday and a declining trend in prices was witnessed. The Karachi Cotton Association (KCA) kept its spot rate firm at Rs8,800.

Cotton experts said a fall of Rs100 was recorded in lint rates and Rs50 in price of phutti (seed cotton). Overall, ginners avoided entering in deals.

In a press release issued on Tuesday, the KCA strongly opposed the proposal of the government to impose ten per cent sales tax on raw cotton at local stage in federal budget with a view to generate its revenue.

The Pakistan Cotton Ginners Association and Pakistan Kisan Itehad (PKI) also opposed the idea to impose sale tax on raw cotton.

Addressing a press conference jointly PCGA Vice Chairman Maher Muhammad Ashraf Mahaar and PKI Central President Khalid Mehmood Khokhar said that there was no support price for cotton.

Mr Mahaar said prices of phutti will reduce by up to Rs500 if the GST is imposed which will affect farmers directly. Also per acre yield will also fall, he added.

The following deals of new and old crop were reported to have transpired on ready counter: 400 bales, station Sanghar, at Rs8,500; 1,000 bales, Tando Adam, at Rs8,400-8,500; 200 bales, Mailsi, at Rs8,750; 2,000 bales, Rahim Yar Khan, at Rs8,850; 1,200 bales, Daharki, at Rs9,050; 1,000 bales( long staple), Ghotki, at Rs9,200; and 2,000 bales, Alipur, at Rs8,000.

Published in Dawn, June 19th, 2019