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Pakistan textile sector to depend on large cotton imports
Feb '11
In order to meet the local demand, Pakistan would be required to import around two million cotton bales by June this year. The summer floods greatly devastated the cotton crop for the 2010-11 season and has thus resulted in a decline in the total crop estimates for the season from the previous target of 14 million to 11.70 million bales.

This has required the country, which is world's third largest consumer of cotton, to import more than one million cotton bales by now, to balance the demand-supply gap. The country's average cotton consumption remains somewhere around 14 to 16 million bales per year.

This week a little more than 11 million cotton bales reached the markets, while now only seven lakh bales are left for supply, which is why the country is certain to fall short to meet the domestic demand and would be required to import another 1.5 to two million bales by June, 2011, because July onwards the new crop will start reaching the market.

The Pakistani textile firms are now considering India, the world's second largest producer of cotton for importing cotton so as to satisfy majority of their cotton demands. This is because imports from neighbouring country in the east prove to be more economical and also require less time.

However, majority of the Indian traders have failed to honour the agreements that they had inked with the Pakistani buyers. They have given the pretext of Pakistani importers' failure to timely register their orders with the Indian authorities, owing to which the supply from India remained less and slow.

Pakistani importers have inked many new deals with the Indian exporters since December 2010, for importing minimum three lakh bales of cotton at a price ranging between $1.40 and $1.50 per pound.

However, the Pakistani traders stated that, they are expecting not more than five lakh bales flowing into the country from India during the current season, and would thus be required to import the rest of their requirements from the US and West Africa by paying higher prices.

Fibre2fashion News Desk - India

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