The All Pakistan Textile Mills Association (APTMA) has warned that any distortion in the policy of free-market mechanism from cotton to garment in the textile supply chain will be a disaster for the textile exports of the country.
In a press statement on Friday, the APTMA warned that Pakistan is short of cotton by approximately half of its requirements or 7 million bales. It said that 14 million bales consuming $8 billion spinning industry, the 3rd largest in the world after China and India, is standing solid to meet the requirements of downstream out of which only 50 percent is consumed by the value-added garments and home textile, and the rest of 50 percent is exported in the form of yarn and fabric as the new cotton season approaches in July.
It said that international prices of cotton are at 90 cents delivered to Pakistan from Brazil, USA and WAF. It is a hope for a complete chain that cotton farmers are seeing prices at these levels after 2011 and are encouraged for cotton plantation which is higher in parity compared to other crops.
The free market mechanism ensures international prices to the complete chain from cotton to dyed fabrics which is why Pakistan sustained the biggest crop failure this year and still is on the path of growth by 20 percent in exports especially because of the regional energy tariff of 6.5 dollars for gas and 7.5 cents for electricity, said the statement.
