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Cotton prices portend only one direction
22
Feb '10
The current cotton season (Aug-July) seems to be moving towards the final laps of an early closure. Cotton prices too have touched historic levels and are also still displaying signs of moving further in the northwards direction.

As per the last fortnightly report of the Pakistan Cotton Ginners Association (PCGA), up to February 15, ginneries reported arrivals of 12,617,561 lint equivalent bales.

Of this, domestic textile mills have taken deliveries of 11,210,549 bales, exporters have lifted 795,148 bales, leaving 611,819 bales unsold lying with the ginners in both pressed and loose form.

Due to the tight conditions, the prices of seed cotton have reached record levels ranging from Rs 2,200 to Rs 2,500 per 40 kgs since Wednesday in both Sindh and Punjab, which has sent a sense of euphoria among farmers.

With domestic cotton having become a scarce commodity, there is scant hope of any easing of prices of cotton or textile products in the near future.

Fibre2fashion News Desk - India


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