Panic buyer causes cotton prices to rise in Pakistan
According to the traders, the cotton prices have been lifted to an 11-year high of Rs14,500/40kg due to dwindling supplies and delayed imports.
Karachi
According to the traders in Pakistan, the
cotton prices have been lifted to an 11-year high of Rs14,500/40kg due to
dwindling supplies and delayed imports.
Due to the stockpiling spree by textile and
spinning mills, the prices of cotton have been pushed up to Rs14,300/40kg. This
is the highest in over a decade. In the same manner, the prices of seed cotton
have also reached their highest ever level of Rs7,200/40kg. The highest prices
of cotton have been recorded in some areas of Balochistan including Khuzdar. It
can be said that this jump in the prices of cotton is due to the sharp rupee
depreciation, expected shortfall in production, and delay in the arrival of
cotton imports.
This price hike has caused the profits
margins for the spinning mills to decrease. As per the sources, the government
will have to intervene before it is too late. On the other hand, growers are
happy with this price hike. The analysts have predicted that if the prices will
keep on increasing, the production of cotton will also increase in the next
year.
According to the sources, there has been a
delay in the exports of textiles because of the increase in the shipment prices
and other reasons. This has also affected the financial position of some mills.
Exporters couldn’t match up to the dollar rates and cotton rates to set prices.
Source – The News
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