Cotton price for second consecutive session moved lower

Pakistan cotton prices for the second consecutive session moved lower. On Tuesday, cotton prices came under pressure due to lack of buying interest. The Karachi Cotton Association (KCA) also reduced its spot rates for second straight session by Rs50, to Rs5,400 per maund.

Disappointed over the Gas Infrastructure Deve¬lop¬ment Cess (GIDC) Act, 2015, spinners reduced their activity.

On the ready counter, most of the deals were finalized at lower rates: 200 bales from Dharki done at Rs5700 (conditional), 200 bales Burewala at Rs5175, 1000 bales Khanewal at Rs5350, 400 bales Mian Channu at Rs5550 and 1200 bales Vehari at Rs5350 to Rs5700 (conditional).

The textile industry had taken the GIDC issue very seriously and felt it will prove fatal for the entire industrial sector as it will further enhance the burden of tax and cost of doing business, floor brokers said.

The strike observed by the textile processing industry in Faisalabad against GIDC is a strong indicator that the industry will not allow the government to collect the cess.

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