FAISALABAD, Oct 14: The speculators have virtually taken over the local cotton and yarn market where rates of almost all the yarn brands and counts have gone up by Rs5 to Rs7 per bundle during the last three days which is an unprecedented hike during the last decade.

According to sources, the business activity was at its peak, but entire market was ruled by speculation mafia, which was seen in action after 15 years owing to sudden rise in the cotton prices.

Local cotton yarn market sources said that the increase had made the exporters unable to buy the yarn.

The prices of famous polyester cotton varieties like PC-24 have increased from Rs51 to Rs56, PC-30 from Rs51 to Rs55 and PC-31 from Rs50 to Rs5. Similarly, PC-38, which was available in the market a week ago at Rs52 is now being sold at Rs56.

The real buyers are missing in the market and the entire transactions are being done by the speculation mafia known as money-makers who are coasting over the market owing to their monopolies over mills, by purchasing the huge stock of cotton yarn in advance.

It was also noticed that the new exporters and small powerloom owners were the worst hit. Those who had a chain of business purchasing yarn on behalf of their foreign buyers are also in hot-waters due to uncertainty in the cotton yarn market.

The uncertainty in the market can be gauged from the fact that during the past 72 hours, the rates of cotton went up from Rs2600 per 40kg to Rs3200. The fluctuations in cotton rates within a short span have literally attracted the speculative buyers to jump in and make money.

It was also noticed that there was a few exporters who had resources to purchase yarn to fulfil their export consignments. However, over 90 percent exporters, used to purchase cotton yarn on day to day basis, have been facing innumerable problems in the wake of present unprecedented increase in the prices of cotton yarn.

The market sources said that fibre and polyester manufacturing units would also take advantage of this situation and might enhance their rates.

Meanwhile, the chairman, All Pakistan Cotton Powerlooms Association (APCPA), Rana Muhammad Ikhlaq, has demanded steps to control cotton yarn prices.

He said that after the increase in the prices of cotton yarn, a number of small powerlooms units had reached on verge of closure because the exporters were not in a position to purchase cotton yarn from the market at heavy prices to fulfil their export orders. He demanded of the government to immediately impose a ban on the export of cotton to stabilize its prices and to reduce the export of cotton yarn.

A leading exporter, Mian Faiq Jawed, stressed upon the government to evolve a comprehensive policy to ban the export of cotton to stabilize the local markets.