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Related Keywords: cotton MSP on the textile industry, pink bollworm infestation in the cotton crops, rising cotton prices

Rising cotton prices following the pink bollworm infestation in the cotton crops, has affected margins to major textile players by ~150 bps this year. The textile sector, which contributes ~4% to India’s GDP, is one of the largest source of employment generation in the country and it accounts for ~14% of exports

Players like Vardhman Textile Ltd started hedging on Multi Commodity Exchange of India Ltd. (MCX) to cope up with the persistent volatility in cotton prices

Related Keywords: APTMA, Better Cotton Initiative, decreasing cotton stock, domestic marekt, kapas, Karachi Cotton Association, Pakistan Cotton Ginners Association, Pakistan cotton market, ready cotton sales, rising cotton prices, seed cotton, unsold cotton

The rising cotton prices which had mind- numbing effects on the Pakistan market last week continue to remain fixed in the wake of the fact that the domestic market is left with only 200,00 bales of unsold cotton.

For whatever minimal quantity of seed cotton (kapas / phutti) prices in Sindh were quoted between Rs 2,000 and Rs 2,600 per 40 kgs, according to the quality, while in the Punjab they were quoted between Rs 2,400 to Rs 3,100 per 40 kilogrammes in a firming market.

Related Keywords: delay in arrival of next crop, higher consumption of cotton, KCA, ongoing spell of rain and cold weather, Pakistan cotton market, pressure on lint prices, rising cotton prices, spinners continued building stocks, Textile Industry, world cotton market, World cotton price

Despite rising cotton prices on Tuesday, spinners continued to build up their stocks fearing delay in arrival of next crop. The next cotton crop is likely to be late by three to four days, as a result of the ongoing spell of rain in Punjab and cold weather in Sindh.

The higher consumption of cotton by the textile industry is also putting pressure on lint prices which have moved to a seasonal high of Rs5,250 per maund. However, shortage of quality lint is another major factor which has pushed prices up.

The Karachi Cotton Association (KCA) left its spot rates unchanged.