KARACHI, Nov 1 Entire textile sector is presently under disarray owing to high raw cotton and yarn prices propelled by huge investment coming from speculators and hoarders, industry sources said on Monday.

The record rise in New York cotton prices having no parallel in post Civil War history of the US has influenced prices the world over and in Pakistan cotton prices also touched an all-time record above Rs8,600 per maund.

What is disturbing the value-added textile industry is the non-availability of cotton yarn in the domestic market putting millions of dollars export orders at stake, the sources said.

Similarly, spinners are also at loss to witness short availability of cotton particularly when only half of the crop has so far reached the market. But the most disturbing factor is active involvement of hoarders and speculators in the cotton and cotton yarn trade which is jacking up prices on daily basis.

Mohsin Ayub Mirza, a leading exporter, said that foreign buyers were not ready to increase prices whereas the cost of cotton yarn had soared manifold this season.

The availability of yarn is the biggest issue the apparel industry is confronting. How could any exporter meet his commitments when yarn is not available in the domestic market even at high price, he lamented.

According to the Federal Bureau of Statistics (FBS) yarn export of all categories during the July-Sept 2010-11 declined by 27 per cent at 124.1 million kg from 170.8 million kg of the corresponding period last year.

But raw cotton export during July-Sept 2010 recorded steep fall at 3,490 tons or 90 per cent over 35,174 tons in the corresponding period last year.

Pakistan Readymade Garments Manufacturers and Exporters Association (Plgmea) Chairman Javed Chanoi said that yarn prices for 20 and 10 single counts had surged to Rs160 and Rs120, from Rs60 and for Rs45, respectively.

Even after attaining such a rise in prices the cotton yarn is not available in the domestic market and the exports of value-added sector are badly suffering, he maintained.