Cotton Prices increase by almost 150% – Could weaken competitive of RMG sector
As the price of cotton increased almost 150 per cent from last year to $2.46 per pound on Thursday, in the International Markets, business leaders warned that it could weaken the competitiveness and reduce profitability of the RMG sector.
The sharp rise in cotton prices will affect the cost of denims and other textiles and many spinning mills are suffering from a shortage of working capital because the price of raw cotton had rarely traded above $1 dollar per pound over the past three decades.
Cotton prices have increased because of rising demand from China, poor cotton harvest in Pakistan and export restrictions in India. Textile exporters advise that they had incurred a loss
