Pakistan Government Considers Regulating Cotton Trade

The Pakistani government must cotton To some extent, this is because speculators have pushed Cotton price Go high, it hurts textile Manufacturers, industry officials said Tuesday.

Javid, Chairman of the Coordination Committee of All Pakistan Textile Association Bilwani said that traders, builders and brokers all believed that cotton trade would rise sharply. This proves that some people make a quick profit by hoarding cotton, resulting in an artificial shortage of cotton, leading to rising prices.

In the past three months, cotton prices have dropped by 35%, following the downward trend of cotton prices in the international market. However, textile manufacturers are still concerned that if prices start to rise, manipulation will begin to take place. The number of spinning companies was not controlled, and cotton yarn companies were free to purchase cotton. This means that the spinning mill can easily move all cotton.

Pakistan produces about 12 million bales of cotton every year, while the demand reaches 15 million bales. The insufficient part is made up by imports.

Textile manufacturers complain that yarn manufacturers have a monopoly on their key raw material supply.

Spinning mills and manufacturers of clothing, knitwear, bedding and linen products are in a passive position in terms of yarn export. The earthquake resistance between them leads to questions about the free market economy. Under the free market economic system, the export of raw cotton cannot be hindered.

Birwani said that spinning mills should be allowed to purchase cotton for up to three months. Exceeding this number must be registered, so that the government can know the exact market situation.

Textile manufacturers complain that their contracts with international buyers have been fixed and that fluctuations in yarn prices often lead to losses.

Barry, former president of Pakistan Knitwear Manufacturers Association, said that large spinning companies could easily obtain funds from banks to purchase additional quantities of cotton.

India has regulated the stability of its textile industry to ensure that cotton and yarn meet domestic demand first. They used non tax barriers to check the yarn's household registration.