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Cotton situation remains grave
05
Jan '08
Sources inform that the shortfall domestic cotton supply will reach nearly 5 million bales, with expected yield of 10 million bales by the end of the financial year.

Around 1.25 million bales have already been imported by the textile industry by now, and larger quantities are expected to reach the country's ports in the coming months.

Thus, imports are likely to soar 107 percent to 1.35 million bales in the first five months of the 2007/08 fiscal year to November.

Statistics provided by Karachi Cotton Association (KCA) show that even in beginning of the New Year cotton prices remained fluctuating. However, it seems that the market activity has picked up slightly after the holiday season.

Cotton prices on January 3 stood at around Rs3,075 per maund, on the next day the rates have climbed to about Rs3,125.

With weakening supply as well as unpredictable prices, the textile industry is uncertain and the trade is becoming strained.

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