Cotton Crisis

In the last few months there has been a huge increase in prices on cotton, due to the flooding in Pakistan. This is starting to have a knock-on effect over all industries that rely on the supply of cotton, including ours. It will be an interesting few months and we will be watching closely to see what happens...

"Textile and clothing firms around the world are bracing themselves for more disruption to cotton supplies and a possible rise in garment prices after the worst floods in decades hit Pakistan's cotton industry, squeezing companies just as they head into the important summer buying season." Just-Style

"The expected lower production and a sharp drop in stocks for the 2009-2010 seasons has already increased cotton prices and would further rise in view of escalating prices of cotton in the international markets, which textile sector would have to bear. Lint price in the international market was 85 cents per pound on August 23, 2010 with an increase of 6 cents per pound."  Daily Times