Cotton import rises by 107 percent

After the government failed to meet the target of 13 million bales of raw cotton production, the millers and the importers have started placing import orders. This has raised imports by 107 percent during March 2007 to meet local demand, importers said on Friday.
Despite government''s claims and revision of cotton production target thrice, the country has failed to achieve raw cotton fiscal target of 13 million bales due to heavy monsoon rains.
"This year, the country was already facing a shortfall of 2.5 to 3 million raw cotton bales, which has now widened to 3.5 million bales after failing to achieve the revised production target," said Ghulam Rabbani a raw cotton importer. He said that the current year''s local production is around 12.5 million against the demand of 15.5 to 16.0 million raw cotton bales.
"Since December 2006, we were expecting that the current year''s cotton target will not be achieved. The government failed to achieve its target despite bes efforts," he added. He said that keeping in view the huge demand form millers importers have placed huge order for the import of raw cotton during the last few months, resulting in raw cotton import rise by 107 percent during March 2007 against March 2006.
During March 2007, the country imported worth $68.245 million of raw cotton as compared to $32.970 million during March 2006, depicting an increase of $35.275.
Cotton import also rose by 58 percent during the first nine months of the current fiscal year 2007. The country has imported raw cotton worth $455.610 million during July-March of the current fiscal against import of $287.632 million during the same period last fiscal year.
"We are expecting further raise in the import of raw cotton in the next two months, April and May, as these months are called dry-season of cotton production," Rabbani said.
He said that Pakistan is the largest producer of cotton, but failed to produce quality cotton, which is also a major reason behind the increasing import of the commodity. Industrialist are demanding long staple cotton, as its production is short in the country to meet the local industry''s demand for which it is imported from other countries including India, USA and Brazil, he added
He further said that raw cotton import is increasing gradually, despite high rates in the international market due to local shortage and quality issue. He said adding that it is expected that by the end of the current fiscal year, raw cotton import will surpass 2.5-3 million bales.
"We are importing raw cotton from India, Brazil, USA and some other countries to meet the local textile industry''s demand and meet consumers'' demand," he added.