Business News

Rising Cotton Prices Take Toll On Apparel Makers

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. 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). Charges for its transport to the mills adds to the local importers’ costs, which also has an impact on yarn prices. Nearly 60 per cent of the yarn production cost is connected to cotton while the remaining to other factors. Between October and December last year, cotton prices hovered around 79 cents to 82 cents per kg, he said. 

Source: The Daily Star, 12-01-2021