The supply deficit causes skyrocketing prices for cotton in the local market. Cotton prices increased by Rs1,000/maund to an all-time high of Rs20,000/maund (37.324 kg). Spot rate also raised by Rs600/maund to the peak level of Rs18,600/maund, whereas prices in the international market also remained at the higher side after some fluctuation. Cotton prices remained at Rs16,000 to Rs20,000/maund in Sindh while seed cotton has almost ended while cotton-seed was sold for Rs1,600 to Rs2,400/ maund. Cotton fetched Rs16,500 to Rs19,000/maund in Punjab, seed cotton was sold for Rs6,000 to Rs8,100/40-kg while cotton-seed was sold for Rs1,900 to Rs2,500/maund. Cotton stock in Balochistan has almost ended.
Naseem Usman, Chairman Karachi Cotton Brokers Forum, said that prices in the international market were high during the outgoing week. March futures prices at New York Cotton Market rose to 117 cents per pound. A local focal person said that the local lint was short in the market, and stocks were likely to go empty in February, while the arrival of new lint would partially start in June, and there would be a gap or around four months.
The prices are up in the international market also. Yarn prices have been up 2.3% in India since Jan 1 due to cotton prices. Textile manufacturers in the hub of Tiruppur in Tamil Nadu have decided to go on a two-day strike later this month to protest against the higher than usual yarn and candy prices. A significant textile manufacturer based out of New Delhi had even written to the Prime Minister asking for immediate intervention to help them get raw material at a reasonable price.
