KARACHI: After destruction of cotton crop and loss of one million bales in the recent floods in Punjab and Sindh, the government has decided to import cotton worth $2 billion to meet the textile sector’s demand during the current financial year.
According to the Karachi Cotton Association (KCA), the textile and spinning sector will have to import more than 1.1 million bales of cotton in the next eight months of FY2015-16. The KCA members said that the import would register a jump of 8 percent from India, United States and other prime cotton-producing countries. Pakistani lint remains cheaper at around 10-12 cents per pound in the international market but after damage to the crop the country would also face a loss of millions of dollars by not exporting around 100,000 bales.
KCA said it expects to import more than 110,000 bales of various qualities till March end 2016 in order to meet the shortfall and country’s demand for raw cotton that has gone up to around 15 million bales (of 175 kg each). Pakistan will definitely miss cotton production target of over 15 million bales in the current 2015-16 cotton-sowing season by 8-10 percent after heavy rains and flooding. The country achieved revised target of 13.48 million bales for 2014-15.
