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Cotton exports manifold with growing Intl demand
Aug '08
Cotton exports of Pakistan have surged tremendously in the period August 2007-July 2008. An estimated 272,924 bales of cotton were reported to have been exported during the year.

In the month of July alone, exports touched 32,000 bales with Bangladesh emerging as the largest buyer of Pakistani exports.

Pakistani cotton is gaining widespread popularity in the world market due to its higher quality. Besides, it is also available at a comparatively lower price of 68 to 69 cents per pound as against 81 to 82 cents per pound ruling in the international market.

Additionally, because of it's the superior quality, share of cotton exports from Sindh increased to 50 percent and which production tion stood at 2.65 million bales. Moreover, sky-rocketing prices of the raw material in India have forced its Government to ban export of lint cotton resulting in an increased demand for supplies from Pakistan.

Although, Pakistan itself is facing a shortage of 3.8 million bales of cotton, exports are not likely to affect the domestic market requirements as there is continuous import of PIMA grade US and other qualities of cotton. This apart, shortfall is also met through imports from India and Brazil.

In an exclusive interview with Fibre2fashion, Mr Ghulam Rabbani Khilji, Director, Board of Karachi Cotton Association and an expert on the cotton industry in Pakistan, stated, “Early crop maturity in the country and withdrawal of import duty on import of cotton from India, are some of the chief reasons pushing up Pakistani Cotton exports to touch the historical mark of approximately 5000 metric tones in a single month of July this year.”

Expounding on the reasons Mr Rabbani further asserted that in the first week of July 2008, cries of the Indian mills were touching the skies due to higher prices of cotton, shortage in supplies and lowering buffer stocks in the country forcing the central government to impose ban on export of cotton and removal of import duty on cotton.

The decision of the Indian Government, turned in to a windfall for Pakistani cotton as it became the favoured destination for Indian and regional buyers like Bangladesh. Moreover, Pakistan was rewarded with bonus supplies of 187000 bales in the last week of June in form of an early harvest and which eventually led to a boost in exports.

Fibre2fashion News Desk - India

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