The cotton prices dropped by a whopping Rs1,500-2,000 per 40kg, reported 24NewsHD TV channel on Monday.

According to Cotton Ginners Forum (CGF) Chairman Ehsanul Haq, the cotton price fell to Rs16,300 and Rs16,800 per 40kg in Sindh and Punjab, respectively.

“The suspension of subsidised electricity and gas rates for textile mills under conditions of the International Monetary Fund (IMF) has had negative effects,” he said.

“The markup rates and further increase in electricity, gas and tax rates are the main reasons behind the fall in cotton prices,” he added.

As the support price of phutti falls below Rs8,500 per 40kg, farmers have demanded that the federal government buy phutti directly from them at the subsidised price.

“Textile exports are feared to be dropped drastically. The cotton prices are feared to be declined further due to the expected fall in the value of the dollar,” the CGF chairman added.

Reporter: Ashraf Khan