In Pakistan, cotton prices are going up due to the devaluation of money compared to USD, transportation issues, and increasing prices for petrochemical sources. Cotton price in Sindh reached an all-time high of Rs 16,000. In Punjab, seed-cotton rates hit the highest price of the season with Rs 7,700/40 kgs.
During the week, an unusual fluctuation was witnessed in the cotton rates.
Due to increased cotton prices, several mills have become financially unstable and were compelled to purchase lint on credit from the market.
Cotton prices reached Rs 14,000 – Rs 15,800/maund in Balochistan that witnessed seed-cotton rates at the highest level of Rs 6,000 – 8,000/40 kgs.
Rates in the New York Cotton Market remained stable during the start of the week but increased to 114 cents/pound later in the week despite a decline in the weekly exports, as per data of the US Department of Agriculture. Cotton prices also remained higher in Brazil, Africa, and China.
Besides, prices in India also increased and reached a historical high.
Raw cotton prices continued to soar, probably the first time in the last decade, with the region’s agriculture produce marketing committee (APMC) recording over Rs 8,500 per quintal, according to the Times of India.
Tukaram Chambhare, secretary of Hinganghat APMC yard, a major cotton hub of Central India, said traditionally, prices fall after the opening day sale. However, due to the higher demand for bales, the rates have gone up. Around 40% less production is another factor for the spike in prices, and expected that the procurement season would close in three months.
