Due to a decrease in the production and the increase in the demand, cotton prices have hit a 10 year high of Rs. 11,000 per maund (40kg) with an increase of Rs. 400 to Rs. 500 per maund in the local market. Local Miller are buying in the market and for these beneficial prices, the ginners are selling. Orders for import of 4.2 million bales have also been placed.
Over the last decade, this is the highest rate increased and recorded for premium quality cotton. The last big surge that occured was back in 2010-2011 in which the prices went up to Rs. 14,000 per maund. This happened due to a huge demand from China. Coming back to 2021, analysts have predicted that there will be additional increase of 20 to 25 percent in the upcoming days.
Pakistan’s government handled things exceptionally well and our textile sector observed a huge growth and demand and therefore, got huge export orders even in the Covid-19 pandemic.
“Cotton production has declined critically in the country but growers could not benefit from the higher prices, as ginners remained the beneficiaries and prices increased when seed-cotton was sold by the growers,” traders added.
“In order to fulfill demand of the local industry, there is need to import around 7.0 million bales. However, import orders for 4.2 million bales have been finalised.”
In the local market, Sindh’s cotton was sold at Rs9,500 to Rs10,700/maund, Punjab’s at Rs10,000 to Rs11,100 per maund, while Balochistan’s lint was sold for Rs10,200 to Rs11,000 per maund.
Traders have taken their appeal to the government regarding the decline in country’s cotton production and have asked that the right measures be taken on emergency basis to increase cotton production in the country.
