Karachi: There have been fears of an abnormal shortfall in the overall domestic production of cotton compared to the target.
Domestic textile mills will benefit from the completion of multi-billion dollar export orders received by local exporters at the German International Expo and the reduction in power rates and markup rates for the export textile sector on the recommendations of SIFC. Cotton may have to be imported on a large scale.
Chairman Cotton Ginners Forum Ehsanul Haque said that according to the cotton production data released by the Pakistan Cotton Ginners Association, a total of 82 lakh 15 thousand bales of cotton has been ginned in the ginning factories across the country till January 15.
The total production of ongoing cotton air is expected to reach a maximum of 8.4 lakh bales, which is 35 lakh bales higher than last year’s total domestic production but a record 44 lakh bales short of the initial target.
According to the report, 41 lakh 59 thousand ginning factories of Punjab and 41 lakh bales of ginning factories of Sindh have reached the equivalent of 41 lakh bales till the mentioned period, which is 37 and 118 percent more than the total production of the previous year respectively.
He said that until January 15, textile mills have purchased 74 lakh 78 thousand bales of cotton from ginning factories, while exporters have bought 2 lakh 92 thousand bales, out of which more than 1 lakh 50 thousand bales have actually been exported.
He said that for the first time in the country’s history, due to the extraordinary increase in cotton production per acre in Sindh, cotton cultivation in Punjab is 80% more than that of Sindh. And next year the total production of cotton in Sindh may be more than that of Punjab.
He said that the Special Facilitation Investment Council has recommended reducing electricity rates from fourteen cents to nine cents for export textile mills at the request of Aptma, which is expected to be approved in the upcoming meeting of the federal cabinet.
Ehsan-ul-Haq said that the rate of mark-up is also expected to decrease during the next period of time, which is expected to decrease the production log of textile mills, which will reduce the export of textile products significantly.
Chairman Cotton Gener’s Forum said that the 277 textile mills participating in the international exhibition held in Germany last week received orders worth around $3 billion, which is expected to significantly improve the country’s economy.
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