Cotton prices have slumped due to global recession and its suppliers in the harvesting stage are facing crisis.
Due to liquidity crunch globally, cotton prices, in the local market which were lingering around Rs4,000 to Rs4,200 per maund, around last month, has dropped to Rs3,475 per mound currently.
In an exclusive interview with Fibre2fashion, Ghulam Rabbani, Director Karachi Cotton Association, says, “As the world's largest cotton suppliers (India, China, USA, Pakistan) are in harvesting stages and crop ideas are moving from good to excellent, supplies are to be increased sharply in near future, and most discussed liquidity crunch in global market are the root issues to decrease the commodity prices.”
Further Mr Rabbani stated, “Liquidity crunch is one of big issue depressing commodity prices in Pakistan but not only here but globally. Farmers now have to deal with this as most of them are dependent on the loans from the bank. They need to focus on enhancing the yield.
"I know it's a tough goal to achieve but at the moment it is the only suggestion. There is no alternative, except taking loans from the banks. Yes, presently banks have become more strict but they have never refused to lend in agriculture sector, the only thing is to manage their available finances in due manner.”
Federal Government has increased the allocation of money for loans in agri sector, to around Rs300 billions through State Bank, and subsidy of Rs26 billion on DAP and Urea, informed KCA Director.
Fibre2fashion News Desk - India
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