16. MARKETING OF LINT.

16.1 Lint is traded by the ginning factories at their premises as well as at Karachi Cotton Exchange. The -Karachi Cotton Association (KCA) determines spot rates daily and the KCA rates are influenced by NY. Futures and B. Index of Liverpool .

16.2 For the last few years there has been no buffer stock in the country and therefore the prices fluctuated sometime widely. In the past hedge market was operative at Karachi Cotton Exchange which however was discontinued in 1973. Incidentally KCA Futures Market used to be the second largest market in the world after New York.

16.3 It can be seen that B- Index prices are not always higher than local Spot Rates. However, the prices at Karachi Cotton Exchange move in sympathy with B-index.

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