Pakistani Textile Sectors Battle Over Yarn Export Duty.

A standoff between two of Pakistan’s major textile sectors, with spinners on one side and value-added on the other, is contributing to a major drop in cotton prices over the last week. Uncertainty on whether or not the government will extend the 15% duty on cotton yarn exports—it is currently set to expire on July 26, 2010—is a major reason for the market’s volatility. Seasonal lulls and sluggish worldwide economic activity also contributed to the drop of 45 cents per kilogram over a three-day period.

Source: www.cotton247.com