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Warning bells ring true. Export orders may be cancelled
Nov '09
It seems the warning signals sent out by the value added apparels and home textiles sectors are turning out to be true. Due to galloping prices of cotton yarn and also a shortage created due to unrestricted exports of the same, exporters from the two sectors are expressing their inability to process orders in time.

This has come in the busiest season of the year, when buyers place orders in time for the Christmas festivities and the winter season. After orders had bottomed out in the first six-seven months of the year, resurgence has been noticed in the order position due to reduced inventories with the retailers as well as the Christmas and New Year festivities.

But the flare up in yarn prices and also shortage of cotton yarn and also due to erratic supply of gas and electricity, the exporters of value added textiles have been pushed into a corner. Orders had been booked from the overseas buyers on the condition that these orders would be dispatched on time.

These exporters also fear that, if the prevailing situation remains intact, then the export orders pertaining to not only for Christmas season but also for Easter and winter season would slip out of their hands and go into the hands of rival countries, which possibly could hinder and block the way for Pakistan to achieve set export targets.

Fibre2fashion News Desk - India

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