|
2010 cotton seen record-breaking
|
|
Abetted by rate rise, global revival hopes
KARACHI: Country's growers, this year, may bring more area under cotton spurred by a record jump in domestic prices and hopes of a global economic revival lifting textile exports.
Output may increase to a record 16 million bales, Abdul Rasheed Khan, Chairman of the Pakistan Cotton Ginners Association (PCGA), told the news agency Tuesday.
Pakistan produced 12.7 million bales this season, in line with the government's revised target, compared with an output of 12.1 million bales last year, Khan said. The government had initially set a target of 13.5 million bales.
Domestic prices rose to a record 5,750 rupees ($68) for 37.32 kilograms (82.3 pounds), according to the Karachi Cotton Association. Cotton futures for May delivery fell 0.39 cents, or 0.5 per cent, to 82.04 cents a pound on ICE Futures US in New York.
"Despite meeting the production target, local prices increased 50 per cent this season, at a pace faster than the international market," said Sohail Naseem, Chairman of the Karachi Cotton Association. "The reason was high demand as 16 million bales and the lack of hedging."
Pakistan may need to import as much as two million bales this year to meet rising demand from textile makers, Khan said. Mills have so far bought 800,000 bales from overseas, mostly from India, he said. -Agencies
|
|