Daily Times

KARACHI: It is not possible for the textile sector to import cotton lint from India on higher rates under the present political circumstances, as the sector is currently facing a shortfall of 3.5 million bales, traders and importers said.

The textile sector bought around 4.5 million bales of cotton from the domestic producers this year. The demand of textile sector stands around 14.5 million bales for this year. Around 4.38 million bales of cotton were produced in the country so far.

“This shows a decline of 6.20 percent in production of cotton bales, said Ghulam Rabbani, a senior member of Pakistan Yarn Merchants Association.

The current Indian lint prices stand at around 71 cents per pound, which were expensive then the domestic cotton, as it was available for 66 cents per pound, Rabbani said.

The country during January to June, imported around 1.5 million cotton bales from USA, Brazil, South Africa, India and other major cotton growing countries.

He said mills would bear an additional burden of around Rs 30 billion on the imports.

It would cover the shortfall, but it would take another four to five months for the new crop to come in the market, which leaves them the mills in a difficult situation.

He said there was a need to import short staple cotton to meet country’s requirements.

“One cannot be sure that imported cotton would be kept safe and would not absorb the moisture, as it was grown in another region,” he added.

He said that long staple cotton was being imported through land and sea routes, but importing it would discourage the local farmers. He said another issue was the quality, which was sliding down, and supply line was becoming weaker. Also the mills would have to pay another 10 percent as duty on import of viscose staple fiber.

The country would also produce late crop in May-June to meet the shortfall, but it is said that “Late crop is always bad crop,” he added.

United States Department of Agriculture in its report has estimated lesser lint production this season and the prices in most of the cotton markets have increased by 7 cents per pound to 71 cents per pound, he said.