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YARN PRICE HIKE IN PAKISTAN PUTS EXPORT CONTRACTS IN JEOPARDY.

AsiaPulse News

| March 03, 2003 | COPYRIGHT 2003 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

KARACHI, March 3 Asia Pulse - Export contracts worth millions of dollars are in jeopardy due to a sudden hike in yarn prices on the domestic market.

There are fears that many exporters may run into default and lose their markets in coming months if no immediate action is taken, exporters said.

"We had been facing high input cost but the recent increase of up to 16 per cent in cotton yarn and 10 to 12 per cent in polyester yarn prices has made it difficult for us to fulfil our export contracts agreed about six months ago," a readymade garment exporter said.

During the last fortnight, cotton yarn prices (22 single) jumped from Rs410 per 10 pound to Rs485 per 10 lb, showing an increase of 15 to 16 per cent in prices.

The 24 single cotton yarn prices also rose from Rs420 to Rs500. Similarly, polyester yarn (24 single) price has surged from Rs50 per 10 pound to Rs55, indicating a rise of 10 to 12 per cent.

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