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Rising cotton prices concern buyers

Apr '08
Contracting cotton stocks in the domestic arena and ever rising prices in the international markets, are expected to affect the lint rate in the coming months.

Further it is anticipated that in the coming season buyers have to shell out more money for purchasing cotton. The major reasons for this price surge are, cotton yield, during last year, failed to reach its expected target. On the other hand, consumption has grown by two folds.

Although, the target for the last season was 14.14 million cotton bales, the country could reach the mark of 11.8 million bales. The Government has set a target of 14.11 million bales for 2008-09.

Causes cited for the low yield, are, water scarcity in most cotton yielding areas, poor production of quality seeds, inadequate supply of quality inputs and uncertified sowing of Bacillus Thuringiensis (BT) variety of cotton in the country.

Official sources from Karachi Cotton Association informed Fibre2fashion, “This hike is predicted to last till July. This is definitely a matter of concern for cotton buyers. However, after that, stability in the market is expected to prevail as a good harvest in the Sindh region is forecasted, which will help in relieving the tight supply.”

However, presently, the cotton market is in a pleasant mood as prices have been stagnated for quite some time now. Today, according to Karachi Cotton Association (KCA), prices for this particular raw material stayed at Rs3,300 per mound.

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