.Prices rose to an all-time high of 6,900 rupees ($82) for 37.32
kilograms (82.3 pounds), according to the Karachi Cotton Association.
At least 64 of almost 90 types of yarns tracked by FCStone reached
records last week, the U.S.-based commodity adviser and trader said in
a report .
.Cotton prices in Pakistan have rallied because of tight supplies
globally, a weak local currency and a ban on shipments by India, the
second-biggest exporter, FCStone said. Pakistan asked mills to restrict
overseas sales of yarn from March to increase supply to domestic
textile makers, according to the All-Pakistan Textile Mills Association .
.“With the government’s caps on yarn exports and higher prices firmly
entrenched, the industry is in dire straits,” FCStone said. “We are
concerned that without some quick relief or reversal of policy soon,
the confluence of these issues at the same time will be difficult for
much of the industry to overcome.” .
.India halted exports last month to cool local prices and said
contracts registered for shipment before April 19 need to be
revalidated. Pakistan is the third-largest buyer of Indian cotton,
according to FCStone .
.“While the announced suspension may have worked to ease prices in
India, prices across the border in Pakistan have soared as imported
supplies have begun to dwindle,” according to the researcher .
“Pakistani mills had placed orders for 200,000 bales from India,
which have been suspended after the ban, said Naseem Usman, chairman of
the Karachi Cotton Brokers Forum. Mills have bought 750,000 bales from
India since Augus ”
Date:5/9/2010
Source:www.dailytimes.com.pk