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Price war
continues on cotton market
KARACHI-Cotton market on Wednesday consolidated previous gains
but ready business fell to a low ebb as ginners and spinners
remained locked in a price war.
Already lint prices have touched the high mark of Rs1,775 per
maund, ginners are seeking further increase in the prices in a
bid to create a level playing ground in a current no-win
situation, brokers said.
"After having purchased phutti around Rs1,000 per maund,
ginners are at the receiving end since last November as lint
prices continued to fall since then", he claims adding "many
have been eliminated out of the game as losses were well above
their enduring capacity".
Dealers said entry of the Trading Corporation of Pakistan
(TCP) in the market to forestall further decline in prices did
arrest the downward drift, they are still far below the
ginners parity levels.
As a result, a silent war of wits between the ginners and the
spinners is at its peak, the former being in a commanding
position as official rate committee is regularly revising spot
rates higher for the last couple of week.
"The 40-kg lint price inclusive of the 15 per cent sales tax
above Rs2,200 signals a major change in the price pattern in
the sessions to come", they added.
While the TCP is said to be active buyer for quality lint
above the ruling prices, spinners have slowed down their daily
purchases in an effort to contain any further increase in
prices.
According to market sources some leading exporters have
secured firm orders for substantial quantity of lint from the
foreign buyers and are in direct contact with the ginners.
Their major thrust is on the low quality stocks being offered
by the ginners for nearby shipments and the highest rate being
paid by them is around Rs1,550 per maund. Official spot rates
did not show any change and were held at the overnight level
owing to slack business in the ready section.
Ready offtake was light as till late in the evening a modest
business of 1,000 bales was finalized, mostly from the lower
Sindh ginneries. The following are some of the deals: 200
bales, Shahpur Chakker at Rs1,550 and 400 bales from Sanghar
also at the same rate.
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The following are Wednesday's
new crop Karachi Cotton Association (KCA) official spot
rates for local dealings in Pak rupees for base grade 3
staple length 1-1/32" micronair value between 3.8 to 4.9
NCL. |
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Rate for |
Exgin price |
Ex-gin price
including Sales Tax |
Upcountry Expenses |
Spot rate ex-Karachi
including Sales Tax @ 15% |
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37.32 kgs |
1,800 |
2,070.00 |
50 |
2,120.00 |
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Equivalent |
|
40 kgs |
1,929 |
2,218.35 |
50 |
2,268.35 |
Courtesy Dawan March
28, 2002
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Pakissan.com;
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