On Wednesday the Karachi Cotton Association said, An enormous fall in the production of cotton pushed the rates to an 11 year high of Rs 11,700 per maund in the domestic market.
Within 15 days, this surge in the demand in the international market inflated by the US cotton’s price by 12-15 cent per pound. The product imported from Balochistan and Afghanistan is being sold at Rs 13,000 per maund.
Since the last 10 years, the production of the crop has seen quite a bit of a decline in areas of cultivation and yield. The production fell to $5.617 million bales this year as opposed to 8.547 million recorded in the last year, with a decline of 34.29 percent.
Imports could see a spike as cotton prices could further inflate in the domestic market. With the US cotton rising up, yarn producers might face more difficulties. As US prices inflate by 10 cents per pound pushing the prices from 84 cents to 94 cents per pound.