Non-branding causes lower price of cotton in world market

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Despite better quality, Pakistan cotton is incapable of getting an attractive price in the world market mainly due to non-branding. Traders said that the quality of Pakistani cotton is much better than that producing in other countries; however non-branding results in lower price in the international market. Whereas USA, India and other cotton producing countries are getting better price for their branded cotton. Pakistan’s cotton industry couldn’t introduce its own brand in last 60 years.

Chairman Pakistan Cotton Ginners Forum, Ihsan ul Haq said that Indian cotton brands, DCH-32, MCH-5, Bunny and Shankar-6 as well as American cotton brands Pima & E mot are established world-wide and getting good prices in the world market. “Quality of Pakistani cotton is almost equal to Indian cotton but so far no brand could be established, due to which Pakistani cotton is not catching attractive price,” he added.

He said that Pakistani cotton is being sold at an average price of Rs 6,800 per maund whereas American cotton “Pima” is attracting Rs 10,300 per maund, Indian brand DCH-32 Rs 9,500 per maund, MCH-5 at Rs 8,350 per maund, Bunny at Rs 8,250 per maund and Shankar-6 at Rs 7900 per maund. Ihsan suggested that cotton ginners and textile mill owners jointly make efforts to introduce brands for Pakistani cotton to catch better prices in world markets.

Branding of cotton will help not only to increase the country’s exports but also to get a better price of the product, he added. Market sources said that some leading textile groups are hindering introduction of branded cotton aimed to keep prices low, as after the branding they will have to buy branded cotton on higher prices.

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