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Export growth impeded by soaring raw material prices
Oct '10
Increasing prices of cotton and polyester are affecting the growth of exports and damaging the value added textile industry. This indicates that attaining targeted exports worth $20.7 billion is quite hard, stated an textile exporters body.

High cotton price is the key reason for an abnormal price rise of basic raw material that has increased the cost of value added textile products enormously which subsequently impacted the export of finished items making them less competitive in international market.

Moreover, the exporters are facing problems with maintaining the continuity of their production as well as meeting their commitments with foreign buyers. As a result of this, the Pakistani exports are not able to maintain their competitiveness in international market.

On account of the high costs of inputs, the exporters are already working under dire conditions, pointed the association. In this regard, the body pleaded that raw materials should be shipped to the foreign market, only after ensuring domestic requirements.

It further opined that the government should realize the impact of current situation and reconstitute the cotton export policy and should allow the export of only surplus cotton.

Fibre2fashion News Desk - India

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