Cotton prices hit all-time high

KARACHI: Cotton prices in the country reached another all-time on supply deficit while traders finalised import orders of 5.0 million bales to fulfill the local demand, traders said.

Cotton prices reach to Rs20,700 per maund (37.324 kg), meanwhile, traders finalised import orders for 5.0 million bales to cater to the local demand. “The cotton production this season is expected to reach 7.5 million bales while its consumption will increase to 17.5 million or 18 million bales,” said Naseem Usman, chairman of Karachi Cotton Brokers Association.

“We will need to import around 8 million bales while import deals of 5 million bales have been finalised,” he added.

He stated that the cotton prices reached another all-time high in the local market, fearing that chances were low of the market coming down in coming days.

According to the PCGA data of February 3, cotton arrivals in the country were recorded at 7.42 million bales while only 33 percent of factories were operating. Traders said cotton consumption had increased by double and Pakistan also received export orders along with India and Bangladesh during the Covid-19, which increased the demand that resulted in an increase in the prices.