January 16, 2019

Modest business after removal of import duty.

Modest trading activity was witnessed on the cotton market on Tuesday just after the announcement of withdrawal of customs and sales tax duties on cotton, dealers said.

The official spot rate was unchanged at Rs 8,700, they added. Prices of seed cotton in Sindh and Punjab were at Rs 3000-3700 and in Balochistan, rates of seed cotton were at Rs 3200-3700, they said.


In the ready session, about 4000 bales of cotton changed hands between Rs 7000-8850, they said.


Commenting on the future trend in the market, cotton analyst, Naseem Usman said the ginners were looking some upset after the announcement by the Economic Coordination Committee (ECC).


According to reports, the ECC accorded approval for withdrawal of customs duty, additional customs duty and sales tax on import of cotton, effective 1st of February till 30th June 2019 to ensure sufficient supply of cotton for the industry.


On the other hand, the mills who were eagerly waiting for waver of import duty, now will try to import better variety cotton at the cheaper rates, they said.


Most of the mills were not satisfied with the quality and rates of local cotton, they added. Cotton prices were higher on the international markets, they said.


Following deals reported: 1000 bales of cotton from Khanpur Mehar at Rs 8750; 200 bales from Masoodo Rind at Rs 7200; 400 bales from Rahim Yar Khan at Rs 8850; 500 bales from Khanewal at Rs 8400/8300; 400 bales from Chistian at Rs 8000; 800 bales from Haroonabad at Rs 7800/8000; 400 bales from Hasilpur at Rs 8000; 200 bales from Tonsa Shareef at Rs 7400; 200 bales from Pir Mehal at Rs 7000 and 200 bales from Kabirwali at Rs 6700 they said.