Is Cotton having a resurgence because of the rise in oil prices?
he latest increase in international oil prices to a record $65 per barrel has crippled the industry depending on the bi-products of the crude oil or using it as raw material while the most important textile sector of the country is bound to pay a heavy price for the escalating crude oil prices. Rising international crude oil prices, which have touched the $65 per barrel mark, is going to raise the cost of production of the local textile industry as well as of polyester staple fibre. The cut-throat competition with the entry of China into the textile world in the WTO quota-free regime has already made it extremely difficult for the export-oriented textile sector of the country to survive. Even the local Pakistani market might be captured by cheaper Chinese products. The threat is even larger if seen in the context of India trying to penetrate into the Pakistani market with cheaper goods. “Whenever the oil prices rise, the cost of producing polyester staple fibre rises, which leaves it u
