KARACHI: Revival of buying interest from some needy spinners on Friday helped cotton market witness some activity. Trading interest remained confined to quality cotton in stocks of current (2018-19) and new crop (2019-20).
According to brokers 200 bales from station Kotri were done at Rs8,750 and 600 bales from Mirpurkhas were traded between Rs8,750-8,800 per maund.
The market is under the grip of post-budget fever. The ginners are not happy over the imposition of 10 per cent sales tax whereas the entire textile sector has already rejected the government’s move to impose 17pc sales tax on exports.
Renewed fall in the rupee value against dollar seems to have attracted some spinners who replenished their stocks in the hope that exports would become more competitive in the world market.
Meanwhile, reports suggested that all textile sectors on Saturday are going to hold protest rallies across the country against the government decision to rescind the SRO 1125 which allowed exemption from sales tax to the five export sectors.
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,800 per maund.
The following deals were reported to have been changed hands on ready counter: 1,600 bales, Sadiqabad, at Rs8,950; 100 bales, Fazilpur, at Rs8,900; and 1,000 bales, Kabirwala, at Rs8,150.
Published in Dawn, June 15th, 2019