Spinning Mills Cut Production
Due to the increase in Cotton Price during the last 2 weeks the cotton mills are cutting production ti minimise the losses. The Price Candy (356kilo) was Rs 32500 in January has now increase to Rs 50000. It is anticipated that Rs 15/ kg loss will be incured by an average mill manufacturing 10000 kg of yarn a day. To Combat recorrence of price raise a Government fund is required to purchase stock from the farmers.
A sub-committee on pricing of Cotton Advisory Board has decided to begin tracking rates across different markets in the country closely, with minimum, maximum and average monthly rates instead of the current format of just the average. Reporting of prices will also be gradually moved to the metric system from the current, the advantage being easier comparision with global measurement systems.