A rise in international cotton prices has had a ripple effect on local yarn, affecting garment shipments, especially of knitwear, during the ongoing coronavirus pandemic.
The widely consumed 30-carded yarn is now selling for $3.60 to $3.75 per kilogramme (kg) whereas it was $2.60 to $2.80 two months ago, according to knitwear manufacturers and suppliers.
On the other hand, between July last year and January this year, international cotton prices went up nearly 28.60 per cent.
In July, New York futures market was trading every pound of it in the range of 63 cents to 63.30 cents. However, yesterday it was ranging between 79 cents and 80.25 cents per pound.
Local spinners, traders, millers and consumers import cotton from the futures markets placing booking in advance as local growers can merely supply 2.50 per cent of the annual requirement of 75 lakh bales (one bale equals 480 pounds).