The latest report of International Cotton Advisory Committee (ICAC) projects Pakistan as the third largest cotton consumer after China and India. .
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Industry players substantiate international body estimation. “We have so far lifted 10.9 million bales from the local market,” said Arif Saeed, chairman All Pakistan Textile Mills Association (APTMA). “Recent assessment suggests that we would touch 14.75 million bales mark by the fiscal end.” .
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He termed the BMR (balancing, modernisation and replacement) programme, basic reason behind the new surge of cotton consumption and the closure of industry in the US and Europe due to higher cost has also allowed the local industry to grab the world share. .
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The cotton mills consumption is on the rise for the last couple of year due to $5 billion BMR programme and expansion plan undertaken by the textile industry.The industrialist said during current year, which is marked with implementation of WTO-regime, has a lot to offer to the $8 billion export industry and the increasing consumption of cotton bales in the mills is indicative of such trend. “The global textile industry now revolve around China, Indian and Pakistan,” said Anjum Saleem, a leading industrialist and former chairman APTMA. “In cotton consumption currently we maybe stand third but at the pace our industry is growing, we can over take India and I think it only a matter of time.”.
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Country textile industry contributed over 60 percent in total exports with around $8 billion textile products mostly to western countries. .
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Spinning, major arm of the industry, on an average exports around 525.13 million kilograms of yarn or 27.3 percent annually out of a total production of 1.92 billion kilograms. Analysts believe the post-quota regime coupled with bumper cotton crop has lifted hopes of all time high cotton mills consumption this fiscal and the figures may touch 15 million bales by the end of the year.“I would not go with the initial estimation,” said Sajid Bhanji, research head at Arif Habib Securities. “The trend is much higher than the estimation suggests. So we predict that cotton consumption may touch 15 million bales figures and may go beyond.”.
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He said the increased cotton use is not only witnessed in Pakistan but industry in China and India is also experiencing the same trend amid quota-free regime. .
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The latest report from ICAC predicts the Chinese industry to top among other countries followed by India and Pakistan. Chinese industry is expected to consume 30 million bales this season and Indian is projected to use 16.5 million bales. However, industrialists see continued export of cotton would push them to import cotton, which may increase their production cost. They say the bales export on lower rates, is equivalent of providing cheaper raw materials to their competitors. “If the government does not ask TCP (Trading Corporation of Pakistan) to sell cotton to local industry, I fear the industry would face immense shortage of raw material,” said Mr Saeed of APTMA..
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He said it does not appear sensible that the country, which produces around 14 million bales, imports another nine million to meet industrial needs just because that its production is exported to foreign countries. .
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Source: dailytimes.com.pk
Date:2/26/2005
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