Cotton prices soared to an 11-year high of Rs. 14,500/40kg, owing to delayed supplies due to irregular imports, reported a national daily.
Other factors contributing to the increase in price are hoarding in the local industry, a hike in the price of yarn worldwide, and the depreciation of the rupee in the international currency market.
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News reports added that the textile and spinning mills started stockpiling cotton as the prices hiked, contributing to the price increase by nearly Rs. 200 to 300 per 40kg.
Seed-cotton prices also followed suit and reached their highest ever level of Rs. 7,200/40kg, the news report added.
However, despite multiple factors causing the price hike, local cotton was still available for the spinning mills, although their profit margins decreased. Now, with the consistent hike, that is also likely to become unfeasible.
Textile exports have also started to get affected, despite the high orders.
At the same time, this increase in the price of cotton is being welcomed by cotton growers, with experts predicting next year’s production to show a significant increase.
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According to a statement by Federal Minister for National Food Security and Research, Syed Fakhar Imam, cotton production will likely reach 10 million bales. However, independent analysts believe that production might be near 8.5 million bales this year.
