September 29, 2020

Pakistan’s Exports Of Raw Cotton Increase By 152% As Compared To Previous Year

The exports of cotton from Pakistan in the fiscal year 2019 increased by almost 153% as compared to the exports in last year. The exports of cotton in the period from July-August 2019 stood at 5,337 metric tonnes worth $8.229 million. The exports of raw cotton in the same period last year stood at 2,240 metric tonnes worth $3.289 million. The exports of cotton yarn in this season, however, decreased as compared to the previous season. The exports of cotton yarn in July-August in 2019 stood at 80,262 metric tonnes worth $206.757 million and stood at 81,897 metric tonnes worth $224.149 million in the same period last year.

The point to note here is that the All Pakistan Textile Mills Association (Aptma) had asked the government in the previous week to remove the taxes and duties on imports of raw cotton, so they can import cotton to cater for their demand in this season. Aptma officials had further claimed that if the taxes and duties on import of raw cotton are not removed, the textile industry won’t be able to compete. It added that the prices of cotton in the local markets were already as much as the prices of imported raw cotton, due to shortage of cotton in the market. Aptma also added that the cotton production in this season was lower than the production target set by the government.

The responsibility for the reduction in the supply of cotton in the market than falls onto the government. As of why did the government not stop the exports of cotton when the raw cotton demand of the country was not being met. A local textile mill’s owner told our local correspondent at NERC that farmers get a higher price for their produce in the international market than the local market, hence they export he cotton and then the local textile industry has to import the same quality of cotton to cater to their demand.

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