Textile exporters unable to finalise new orders

Value-added textile chain suffering due to unavailability of cotton yarn

Textile exporters have urged the government to pay attention to cotton production, cultivation area and cotton yield in order to support the value-added textile chain as cotton and cotton yarn are basic raw materials for its survival and development.

Owing to a decline in cotton harvest, the production of value-added textile sector has suffered due to unavailability of cotton yarn, and textile exporters are hesitant to finalise new export orders, said Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani.

According to a report of Pakistan Cotton Ginners Association (PCGA), only 4.02 million bales reached ginneries until November 15, 2020, which was extremely low as compared to 6.85 million bales in the same period of last year, showing a decrease of 41.27%. “The cotton crop is considered as white gold,” Bilwani said, adding, “However, the production of cotton is declining every year.”

The declining trend was not only inflicting damage to the country’s economy but was also affecting farmers and other people associated with the business, he said.

Major causes of the decline in cotton harvest are reduction in cultivation area and per acre production, low-quality seeds and shifting of farmers’ focus towards other crops due to a lack of government support.

The apparel forum chairman was of the view that the crop shortfall had a devastating impact on textile exports and hence, the exporters sought attention of the government for taking immediate measures with a concrete policy in consultation with the value-added textile representatives.

The textile sector contributes around 54% to total exports, provides approximately 40% of urban employment, particularly to the female workforce, and is the largest foreign exchange earner.

“The government must immediately take notice of substandard cotton seeds being provided to farmers and strict action must be taken against suppliers as exporters consider the supply of substandard seeds an act that is against the interest of Pakistan,” Bilwani said.

He emphasised that the government should allow import of cotton yarn without customs and regulatory duty under the current state of affairs as it had already permitted duty-free import of cotton.

“Pakistan should expand cultivation area to meet requirements of the value-added textile export industry,” he said. “Textile exports cannot be enhanced unless cotton cultivation area is expanded.”

Published in The Express Tribune, November 19^th, 2020.

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