KARACHI: Cotton price has jumped by Rs 1800-2000 to Rs 7,500-7,400 per maund this week due to short supply in the wake of heavy crop damage, brokers said Saturday.
Member of Cotton Brokers and Advisory Committee Amir Naseem said that spot rates of Karachi Cotton Association (KCA) have also surged by Rs 1000 per maund during the week to close at Rs 7,000 per maund.
He said the news about the damage of cotton crop due to torrential rains have created panic among textile mills and private exporters.
He pointed out that dealers were backing out from the contracts due to non-availability of cotton in the market.
Amir said that rain water has entered the large number of ginning factories, stopping their operations. Spinners were shutting down their mills due to cotton shortage, he added.
He said mill owners have entered in contracts for import of 200,000 bales of cotton from India in the last one week.
Copyright APP (Associated Press of Pakistan), 2011
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