The
market survey also revealed that in almost all the famous yarn counts,
20 single, 30 single, 40 single and 60 single, the prices have been
witnessed an increase of Rs.300 per bundle in a short span of 10 days.
The market sources claimed that the increase of the prices has been
resulted in the wake of extraordinary and unparallel increase in the
raw cotton which touches Rs.6000 per maund.”/span>.The sources further
contended that apart from the high prices of the cotton, the yarn
merchants are also massively involved in creating artificial shortage
and speculation which also one of the main cause for high prices of the
cotton yarn in the market. On the other hand, due to the shortage and
extraordinary increase in the cotton yarn, the power loom, hosiery,
garment and other manufacturing cotton fabrics units are also
reportedly severely hit…The market pundits are of the opinion
that in such high prices, the power loom, hosiery, garment and cotton
fabrics manufacturing units are no more viable and consequently become
inoperative. The hosiery, garment, power looms and cotton fabrics
manufacturing units confirmed that about 20 percent units have become
idle while the rest are at the verge of closure because of the high
prices of cotton yarn. The exporters of cotton fabrics are also facing
an uphill task to fulfill their export commitments with the foreign
buyers owing to all of sudden increase in the prices of the cotton yarn..
Date:4/28/2010
Source:The Associated Press