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High cotton prices hurting Pak textile industry

Aug 16, 2021
High cotton prices hurting Pak textile industry

Lahore

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 – Dawn

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