High cotton prices hurting Pak textile industry
As per the Karachi Cotton Association, the price for whit lint is fixed at Rs 13,580 per maund while on the other hand, the seed cotton prices are between Rs 5,200 and Rs 6,200 per maund.
As per the Karachi Cotton Association, the
price for whit lint is fixed at Rs 13,580 per maund while on the other hand,
the seed cotton prices are between Rs 5,200 and Rs 6,200 per maund.
As per Naseem
Usman, Chairperson, Karachi Cotton Brokers Forum, these are the highest prices
since 2010-11 when the prices had crossed the mark of Rs 14,000 per maund.
There has been an unexpected shortage in the market because of rising freight
charges, delays in import delivery, mounting dollar-rupee disparity, and
negative crop outlook reports from neighbouring countries.
According to a
textile miller, almost 11 million bales of cotton have been purchased but the
shipment is facing delays because of the Covid-imposed restrictions. This delay
is having a negative impact on the local market as the requirements have to be
met by local sources till the millers receive imported raw material. As per Muhammad Junaid Iqbal, ginner from
Rahim Yar Khan district, the seed cotton rate in the market of Punjab is being
quoted at Rs 6,200 per maund and it is expected that this price might go up to
Rs 7,000 if the shipments from abroad are delayed further. He also said that
the 20 to 25% crop in India has been damaged because of the heavy rainfall in
the country as well as harsh weather conditions in China. This will further add
stress to the local market.
Usman also said
that the imported cotton is getting expensive because of
the sliding of the rupee against the dollar and increasing freight charges.
This is the reason why textile millers are turning to local purchases because
of the uncertainty of dollar rates and the arrival of shipment.
Source â€“ Dawn
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