Faisalabad—An abrupt and abnormal increase in prices of the cotton yarn has hit the local cotton yarn market which is giving a deserted look and yarn merchants are sitting idle for lack of buyers. According to a survey, the local yarn market which is one of the biggest markets in the country and always crowded with the buyers is facing acute shortage of cotton yarn, owing to the shooting of yarn prices to an unprecedented extent.
The market survey also revealed that in almost all the famous yarn counts, 20 single, 30 single, 40 single and 60 single, the prices have been witnessed an increase of Rs.300 per bundle in a short span of 10 days. The market sources claimed that the increase of the prices has been resulted in the wake of extraordinary and unparallel increase in the raw cotton which touches Rs.6000 per maund.
The sources further contended that apart from the high prices of the cotton, the yarn merchants are also massively involved in creating artificial shortage and speculation which also one of the main cause for high prices of the cotton yarn in the market. On the other hand, due to the shortage and extraordinary increase in the cotton yarn, the power loom, hosiery, garment and other manufacturing cotton fabrics units are also reportedly severely hit.
The market pundits are of the opinion that in such high prices, the power loom, hosiery, garment and cotton fabrics manufacturing units are no more viable and consequently become inoperative. The hosiery, garment, power looms and cotton fabrics manufacturing units confirmed that about 20 percent units have become idle while the rest are at the verge of closure because of the high prices of cotton yarn. The exporters of cotton fabrics are also facing an uphill task to fulfill their export commitments with the foreign buyers owing to all of sudden increase in the prices of the cotton yarn.—APP