SlideShare a Scribd company logo
The Ultimate Apparel Solution...
The Soaring Prices of Cotton
in Pakistan and India
Factors Causing the Soaring Prices of Cotton and Cotton
Yarn (Pakistan and India)
CottonoCropoShortageoino2016-2017odueotooincreasedo
demand
LessogrowthoofoCottono
IncreasedoPestoinfestationo
ReductionoofoCultivatedolandoforocotton
SoaringopricesoinoChinaoandoUSA
DemonetizationoinoIndiao
Cotton and Cotton Yarn Prices Fluctuation in
Pakistan
UnexpectedoPestoinfestationoinoPunjabohasoresultedoinolesso
cottonoproduction.
ReductionoinoCultivationolandoofomoreothano20opercentoovero
lastoyear.o
AoshiftofromoCottonotooMaizeoandoSugarocaneohasoresultedo
inoalmosto35%odeclineoinotheoproduceoofoCotton.o
[https://www.thenews.com.pk/print/176495-Cotton-arrivals-up-117-percent-still-off-
target]
FearoofoHighoconsumptionoGloballyohasodepletedotheo
stocks.o[http://www.dawn.com/news/1271071]
Cotton and Cotton Yarn Prices Fluctuation in
India
TheoDemonetizationocampaignoresultedoinolesso
tradeobyoFarmers.oAsofarmersodealoinocash.oo
Cashoshortageoresultedoinodeclinedotradeo[http://www.business-
standard.com/article/economy-policy/high-prices-force-indian-mills-to-import-cotton-early-116122400180_1.html]
6100
6200
6300
6400
6500
6600
6700
6800
6900
Price
Raw Cotton Price in Pakistan a period from Dec 2016 to Jan 2017
(37.32 Kg in PKR Avg) Pakistan
RawoCottonoPriceoinoPakistanooaoperiodofrom
Deco2016otooJano2017o(37.32oKgoinoPKRoAvg)
Price
Startingoprice PKRo6350
LatestoPriceoPKRo6800
64
66
68
70
72
74
76
78
Raw Cotton Price in Pakistan VS Usa Over a period from Dec
2016 to Jan 2017 (1 LB in US$ Cents Avg) USA
RawoCottonoPriceoinoPakistanoVSoUsaoOveroa
periodofromoDeco2016otooJano2017o(1oLBoinoUS$
CentsoAvg)oUSA
Starting PriceoUS$o73o
cents latesto
priceoUS$o75ocents
Increase in the Cotton Yarn prices in Pakistan Over a period from
Dec 2016 to Jan 2017 (Price In PKR/10 Lbs)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
30oCarded
40ocombed
40oCVC
Itoisoyourosourrcingothat’soWhyoyouocalloit

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Soaring cotton prices

  • 1. The Ultimate Apparel Solution... The Soaring Prices of Cotton in Pakistan and India
  • 2. Factors Causing the Soaring Prices of Cotton and Cotton Yarn (Pakistan and India) CottonoCropoShortageoino2016-2017odueotooincreasedo demand LessogrowthoofoCottono IncreasedoPestoinfestationo ReductionoofoCultivatedolandoforocotton SoaringopricesoinoChinaoandoUSA DemonetizationoinoIndiao
  • 3. Cotton and Cotton Yarn Prices Fluctuation in Pakistan UnexpectedoPestoinfestationoinoPunjabohasoresultedoinolesso cottonoproduction. ReductionoinoCultivationolandoofomoreothano20opercentoovero lastoyear.o AoshiftofromoCottonotooMaizeoandoSugarocaneohasoresultedo inoalmosto35%odeclineoinotheoproduceoofoCotton.o [https://www.thenews.com.pk/print/176495-Cotton-arrivals-up-117-percent-still-off- target] FearoofoHighoconsumptionoGloballyohasodepletedotheo stocks.o[http://www.dawn.com/news/1271071]
  • 4. Cotton and Cotton Yarn Prices Fluctuation in India TheoDemonetizationocampaignoresultedoinolesso tradeobyoFarmers.oAsofarmersodealoinocash.oo Cashoshortageoresultedoinodeclinedotradeo[http://www.business- standard.com/article/economy-policy/high-prices-force-indian-mills-to-import-cotton-early-116122400180_1.html]
  • 5. 6100 6200 6300 6400 6500 6600 6700 6800 6900 Price Raw Cotton Price in Pakistan a period from Dec 2016 to Jan 2017 (37.32 Kg in PKR Avg) Pakistan RawoCottonoPriceoinoPakistanooaoperiodofrom Deco2016otooJano2017o(37.32oKgoinoPKRoAvg) Price Startingoprice PKRo6350 LatestoPriceoPKRo6800
  • 6. 64 66 68 70 72 74 76 78 Raw Cotton Price in Pakistan VS Usa Over a period from Dec 2016 to Jan 2017 (1 LB in US$ Cents Avg) USA RawoCottonoPriceoinoPakistanoVSoUsaoOveroa periodofromoDeco2016otooJano2017o(1oLBoinoUS$ CentsoAvg)oUSA Starting PriceoUS$o73o cents latesto priceoUS$o75ocents
  • 7. Increase in the Cotton Yarn prices in Pakistan Over a period from Dec 2016 to Jan 2017 (Price In PKR/10 Lbs) 0 200 400 600 800 1000 1200 1400 1600 1800 2000 30oCarded 40ocombed 40oCVC