Cotton prices are showing no signs of slowing down and are creating a nuisance for textile manufacturers. This has particularly distressed the domestic industry, adversely affecting not only production but also exports, biting into the profits of enterprises.
While on October 30 Karachi Cotton Association (KCA) quoted prices at Rs3,025 per maund, next day the rates climbed to Rs3050 per maund. Today also the same rates were seen in the market. A-Index stood at 71.35 and B-Index was at 69.10.
However, this price is just too high for the manufacturers. To get Government's attention and stress the seriousness of the issue All Pakistan Textile Association (APTA) has organized a protest starting today.
Mr Adil Mehmood, Chairman, informed Fibre2fashion that the textile industry has been requested not to make any cotton purchases for four days. He further stated, “Since Eid, price of cotton has climbed by almost Rs400 per maund. Main reason for such hike is the shortfall of production this season. Expected output of cotton was 14.5 million bales, whereas the actual crop stands at only 10 to 11 million bales.”
Akbarali Hashwani, Chairman, KCA informed, “Textile mills are short of inventories and the exporters have commitments of about 150,000 bales mainly to Indonesia, Bangladesh and about 30,000 bales at around 64.50 cent per pound is resulting in hesitation and panic buying between growers and ginners.”
Mr Mehmood explains, “There is a definite gap between supply and demand. Presently, import from India is not permitted as cotton fumigation is not adequate. Inspite of this, we are urging the Government to allow import from this neighbouring country, which will relieve manufacturers to a great extent.”
He further said that the association and industry may plan an aggressive strike after the November 15 elections.
Fibre2fashion, News Desk - India
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