Bullish factor prevailed on cotton market. The price of quality cotton increased to Rs 23,500 per maund. A significant increase of Rs 2500 per maund was witnessed in the spot rate, as well. Textile spinners and ginners are not happy due to high prices of cotton and Phutti.
Due to the disparity, more textile mills
are being closed down. Some garment factories and sizing factories have also
closed their operations while some others are on the verge of closure. Due to
huge difference in demand and prices of cotton product compared to cotton, the
mills have to bear irreparable losses. Some have reduced their number of
shifts. There is a severe recession in the international markets.
The demand for textile products has decreased, significantly. Garment export orders are very low due to which many garment factories and sizing factories are on the verge of closure.
Finance Minister’s has advised to import cotton from India but the government has yet to take a decision in this regard. Market experts have feared that cotton imports will become more expensive due to further sharp appreciation of the dollar against the Pakistani rupee.
In the local cotton market, unprecedented fluctuations were observed in the price of cotton. Last week, the price decreased by Rs3500-Rs4000 per maund. The spot rate also decreased by Rs 3,000 per maund to a low level of Rs 20,000 per maund. From the beginning of the new week, the increasing trend in the prices was observed, which after continuing reached to Rs 21,500 to 23,500 per maund.
Apart from this, the price of Future Trading of New York cotton for December delivery after increasing by three American cents reached at 1.06 American cents per pound. In addition, in the local currency market, the US dollar rose again to Rs 230 in the interbank and in open market to a high of Rs 238.
