KARACHI: The cotton prices have gone past the historic mark and have reached Rs15,000 per maund on Friday. Ginners association attributed this to hiked demand and falling production.
According to the Chairman of Pakistan cotton ginners association said the price surge is due to the international trend. It is also amplified by the drop in the local production.
The increased price is due to little crop compared to the demands, association chairman Ihsan ul Haq said.
However, he added that the country will hopefully produce 10 million bales of cotton in the next harvest. That will also bring down the prices. He said the growth in production will contribute to GDP growth as well.
The global trends of price surge were instigated by the U.S. purchase of cotton in sizable volumes. And also because of the decrease in the Indian crop this year.
Late last month, it was reported that the cotton prices increased by Rs700 per maund in Pakistan.
According to the Chairman Pakistan cotton ginners association, the prices of cotton are increasing in the international market. In the last two days, the cotton prices have increased by six cents per pound in the United States.
The prices of cotton are also increasing in neighboring countries China and India. After the increase of Rs700, the price of cotton has reached 13,800 per maund.
Earlier in the month of April, the federal cabinet had rejected an Economic Coordination Committee (ECC) proposal. The proposal allowed the import of cotton and sugar from India.
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