A 51 per cent decline in domestic production and delays in imported cotton shipments has led to local cotton prices in Pakistan rising to Rs 20,000 per maund.
Driven by strong export orders, the textile industry in Pakistan has shifted its focus to local cotton as imported shipments face delays. Cotton prices for deferred payments increased to Rs 20,000 per maund, while routine payments ranged between Rs 19,000 and Rs 19,500 per maund. Market analysts expect prices to rise further amid sustained demand.
Ihsanul Haq, Chairman, Cotton Ginners Forum, attributes the import delays to fumigation issues in Brazil caused by a shortage of required chemicals.
Meanwhile, in accordance with the directives from Prime Minister Shehbaz Sharif, the Federal Board of Revenue (FBR) held a meeting on January 13 in Islamabad to decide whether to maintain the 18 per cent sales tax exemption on imported cotton and yarn.
The FBR meeting addressed these concerns and determined the future of tax exemptions, a decision with significant ramifications for both the textile industry and local cotton producers.
