KARACHI: After approval of the Gas Infrastructure Development Cess (GIDC) Act, 2015, the spinners remained reluctant to buy cotton, which also affected the price of the commodity.
For second consecutive session cotton prices moved lower 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.
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, brokers said.
On the ready counter, most of the deals were finalised 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).
