SINGAPORE: Cotton prices have nearly doubled in the last 12 months, and clothes are set to become more expensive. But to keep a lid on costs, fashion retailers are increasingly looking to use more polyester as a substitute in garment production.
Analysts said that global supply of cotton is on a decline but demand for the commodity has shot up mainly from increased consumerism in China. Supply pressures from floods in cotton producing areas such Pakistan and Queensland, Australia this year have also added to price woes.
In the last 12 months, cotton prices nearly doubled to US$1.54 from US$0.80 per pound in May 2010. It rose to an all time high of US$2.04 per pound in March.
Since retailers are not likely to absorb all the price increases, the majority of higher cotton costs will be passed on to consumers.
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