Textile industry of the country is likely to face shortage of yarn and cotton next month which will result in decline of value added textile exports, it is learnt. With expected shortage of these commodities, the prices will rise further making it difficult for the value-added sector to meet foreign orders, sources in the textile industry revealed to Business Recorder.
Pakistani cotton, which was 81 cents/pound in July 2010, reached 125 cents/pound in November, 2010 and at present is at 211 cents/pound. According to the estimate of the Ministry of Food and Agriculture, about 0.596 million hectares, under cotton, was damaged by floods, out of a total of 3.2 million hectares. The ministry estimated around 2.6 million bales loss and expected that production for the current season would reach 11.4 million bales against domestic demand of 15 million bales.
However, large-scale export of yarn and cotton has raised concerns within the textile industry that the country may face shortage of yarn and cotton next month if corrective measures are not taken now. Quoting the Federal Bureau of Statistics data, sources maintained that textile exports during July-January (2010-11) recorded over $7.44 billion against exports of 5.917 billion during July-January (2009-10) registering an increase of 25.88 percent. However the positive growth in textile exports was mainly due to cotton yarn, cotton cloth and raw cotton exports which increased by 32 percent, 32.02 percent and 5.13 percent respectively.
National Assembly Standing Committee on Textile Industry in its last meeting had also voiced serious concerns over large-scale export of yarn and cotton. The Committee recommended that export of yarn and cotton should only be allowed after fulfilling requirements of domestic industry and had directed Secretary Ministry of Textile Industry to submit proposals that would ensure availability of cotton and yarn for domestic industry in future.