Import delays push lint prices to record Rs20,000 per maund
The local cotton market was showing a bullish trend as white lint rates on Thursday touched the highest mark of Rs20,000 per maund for the ongoing season. On the other hand, the Federal Board of Revenue (FBR) has called a special meeting on Monday to discuss whether to maintain sales tax exemption on imported cotton and yarn. Local cotton prices are rising because of an unexpected delay in the arrival of imported yarn, a drastic cut in domestic crop production, and large textile products’ export orders. Total domestic cotton production fell short of the projected target by 51 per cent and 32pc over the last year’s output. While the textile industry has received big export orders, reports suggest that the arrivals of imported cotton shipments have been delayed to May from March.