January 30, 2013
The country's raw cotton export dipped by 51 percent during first half of current fiscal year mainly due to shortfall in cotton crop. Industry sources said on Tuesday that followed by shortfall in cotton crop, higher domestic prices are also hampering the export of raw cotton, which was on increase till June 2012. During the current cotton crop, so far Pakistan's cotton production stood at 12 million bales compared to 13 million bales in same period of last season. They said raw cotton exporters are also facing challenge of cotton quality in the international market, which benefits India and some other counties.
They added, "shortfall in the crop also cast negative impact on the export of cotton." Presently, traders prefer to sell cotton to local textile industry as there is high demand in the domestic market due to short crop. They are also offering a better price as compared to world market, they added. As per official statistics, the country's cotton export witnessed a fall of 51.4 percent during the first half of current fiscal year. The country exported raw cotton worth $78.356 million during July-December of fiscal year 2011-12 as compared to $161.429 million in the corresponding period of last fiscal year, depicting a decline of $83 million. Month-on-Month basis, raw cotton export posted a decline of 74.76 percent in December 2012. The country's raw cotton export stood at $9.58 million in December 2012 against $37.7 million during December 2011.
"Local textile industry is facing shortage of some 3 million bales during the current fiscal year, as currently our local demand stands at around 15-16 million bales, while expected production is likely to be 13.5 million bales during this season," industry sources said. However, they said that decline in cotton export is good for the domestic industry and this will also help maintain prices of the commodity at a reasonable level. During last year Pakistan's cotton export was at peak level, therefore the current decline in cotton export is witnessing a major decrease, they mentioned. They said that at end of current fiscal year Pakistan's raw cotton export will be less than FY12 but will be equal to exports of FY11. The country's cotton export moved up by 26 percent to $462 million in FY12 from $365 million in FY11. (Source: Business Recorder)