LAHORE: The rate of cotton touched Rs 12000 per maund which is highest in 11 years. The Spot Rate Committee of the Karachi Cotton Association on Wednesday closed the rate at Rs 11700 per maund which is at the highest level in the history.

Chairman Cotton Brokers Forum Naseem Usman that reason behind unprecedented increase in the cotton prices is alarming decline in the cotton production and bullish trend in the international cotton market. The Rate of Promise (Waday Ka Bhao) of New York Cotton has increased from 84 American cent to 94 American cent in last 15 days.

Naseem said that this year it is expected that 56 lac bales will be produced in the country which is lowest in thirty years. The demand of local textile industry is of one crore 80 lac bales. Keeping in view the demand of local textile industry 80 lac bales of worth 4 billion dollars including Banola, Oil and Khal will be imported.

Nasseem said that it is very unfortunate that no concrete policy regarding increasing the production of cotton have not been announced by the government yet.

Copyright Business Recorder, 2021