The country's raw cotton export fell by 15 percent during the first eight months of the current fiscal year (FY15) mainly due to lower demand and quality issue. Traders said that despite lower cotton prices compared to other competitors, Pakistan's raw cotton was unable to capture the world market.
Pakistan is the fourth largest cotton producing country in the world and has so far achieved a bumper of 14.7 million bales during this season. "Depreciation of dollar against Pak Rupee and lower prices in the world market have largely contributed to decline in cotton exports," said Ihsan Ul Haq, a leading cotton trader.
He said that quality or contamination was another major issue, which was hitting the country's cotton exports. "We can earn millions of dollars foreign exchange by producing quality cotton," he added.
He informed that cotton prices in India were increasing gradually, as Cotton Corporation of India (CCI) had not released the procured cotton. The rising Indian cotton prices would provide an opportunity to Pakistani traders to capture the international market as the country's commodity was still economical compared to India's, Haq said. Talking about domestic production, he said that Pakistan was likely to achieve all time high cotton crop of 14.9 to 15 million bales this year. "Current cotton season will end on April 30, after which final production statistics will be released," he added.
According to official statistics the country's cotton exports have declined by 15 percent or $23.75 million during the first eight months of FY15. The country has exported raw cotton amounting to $139.34 million during July-February of FY15 as compared to $163 million in corresponding period of the last fiscal year.
On Month on Month basis, raw cotton export has posted a decline of 64 percent in February 2014. The country's raw cotton export stood at $6.7 million in February 2015 as against some $18.9 million during January 2015.
"Although, Pakistan is losing millions of dollars foreign exchange due to decline in cotton export, however on the other side it is good for the domestic industry as we believe that this will ensure proper supply of raw material to the local textile industry, besides maintaining commodity prices at a reasonable level," Haq said.
Source:brecorder.com
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