COTTCO Holdings (Cottco) says foreign currency price distortions currently obtaining on the market are driving up the cost of local cotton production, piling pressure on the company’s margins.
In a trading update last week, Cottco Holdings chief executive Pius Manamike said the company was facing increasing pressure due to the growing premium between the official foreign currency rate pegged around $97 against the parallel market rate hovering around $200.
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“The rising costs of local cotton production continue to put pressure on the company’s margins due to the various exchange rates prevalent on the market, which are being used by some suppliers as a basis for costing,” h
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