In the textile industry, the record-high cotton price has sparked fear
ByShehryar Makhdoom | Published date:
Pakistan's cotton price touched a record high on Wednesday, sending tremors through the state's textile industry. As a result, cotton prices in the Karachi cotton market have risen to an all-time high of Rs 15500 per 40 kilogrammes (kg). Cotton's price had just increased dramatically on the worldwide market, prompting this move.
The Karachi Cotton Brokers Forum Chairman, Naseem Usman, informed
That cotton futures in New York started on Wednesday morning at 113.92 cents per pound, surpassing the $1-per-pound threshold after ten years.
According to him, in Pakistan, cotton prices have risen by Rs. 700–1000 every 40 kg. High-quality cotton sold for Rs. 15000 per 40 kg on the open market, whereas Balochi cotton sold for Rs. 15500 per 40 kg.
Textile spinners fear they won't sell their products at a reasonable price because of the price increase in the cotton and textile industries.
As Usman pointed out, they are "all-time high rates for Pakistan." "High cotton costs on the international market have prevented textile manufacturers from entering into import agreements."
As a result of pricing instability and the dollar-to-rupee differential, he continued, exporters are apprehensive of entering into contracts.
Usman recalled that cotton futures in New York hit a record high of $2.26 per pound in 2011 as well, according to him.
The price of cotton in Pakistan at the time, according to Usman, was Rs 14500 for 40 kilogrammes. "As a result of the price increase, a wave of bankruptcies in the textile industry occurred, with several cotton yarn factories being forced to close their doors."
Pakistan's cotton and textile industries are already confronted with considerable hurdles, including record-high container and transportation charges and pest assaults on cotton crops as a result of heavy rains in the country.
Following an announcement by the Karachi Cotton Association on Wednesday, the spot prices of cotton increased by Rs. 400 per 40 kg, closing at Rs. 14,300 per 40 kg on Wednesday.
Comment