The Textile Ministry has convened a meeting of All Pakistan Textile Mills Association (Aptma) on Wednesday, April 20, to discuss the likely cotton and yarn shortage in the country, it is learnt. During the meeting cotton export and import for the current year would also be discussed.
Textile industry is expected to face a shortage of 4 million bales of cotton, due to which cotton prices are expected to soar. This, in turn, would imply higher costs than anticipated for the value-added textile sector which might compromise the sector's ability to meet its agreed export orders. The textile sector is one of the largest employers in the country and therefore any decline in its output would have an impact on employment, sources in the Textile Ministry said.
Textile Ministry has also convened another meeting of the value-added textile sector on April 21 to discuss raw cotton availability. As soon as consultations are complete, the Ministry would finalise a strategy for cotton and yarn import and export for the remaining months of the current year, sources added.
They said that cotton production is expected to be 11.8 million bales during the current year and, given 15.5 million bales of domestic consumption, a shortfall of 4 million bales is expected. The government has declared the current year as Textile Year 2011. However, due to immense challenges faced by the industry, the desired results may not be achieved. Pakistani cotton, which was 81 cents/pound in July 2010, reached 125 cents/pound in November, 2010 and at present is available at 211 cents/pound.
The senate standing committee on textile industry in its last meeting had voiced serious concerns over the unavailability of cotton and yarn for the local textile industry. The body has also recommended to the Ministry to carve a strategy in consultation with all stakeholders to meet the expected shortfall this year. Sources said that as directed by the standing committee, the Ministry would draft proposals, to be submitted to the committee.
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