You may have heard reports in the news during the last quarter of 2010 on the likely rise in cotton prices due to flooding in Pakistan and China, two of the world's largest cotton growers. And now you are wondering whether the cotton crisis has manifested itself in the retail price of cotton nightdresses?
The answer to this query is that most, although not all, retail stores are pushing up their prices to cover several factors affecting their costs, not just the rise in the wholesale price of cotton. The other factors include the VAT hike and rising freight costs.
Financial predictions suggest that high street clothes prices are set to rise by as much as 10 per cent in 2011, as cotton prices hit a 15-year high and VAT rises from 17.5 per cent to 20 per cent.
Pakistan and north-eastern China were hit with devastating floods in the second half of last year, destroying more than 4.25m acres of cotton, which affected an estimated 25 per cent of the total cotton crop.
On top of this unseasonal weather in the USA, the world's third largest producer of cotton, also destroyed cotton crops, and the price of the raw material rocketed up by more than 700 per cent.
Higher shipping costs from China are also affecting retailers' ability to maintain pricing levels, leaving them with two alternatives - to put prices of cotton clothing up or switch to using more man-made fibres.
As cotton currently makes up 15 to 20 per cent of the textile component that people are wearing it is clear that demand is high. People choose to wear cotton for its many beneficial properties, and most do not wish to switch to man-made fibres.
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