The consumption of cotton by textile mills in Pakistan would increase following the decision of the World Trade Organization (WTO) to allow duty-free exports of 75 Pakistani items to EU for a two-year period, the Pakistan Cotton Ginners Association (PCGA) has said.
Mr. Amanullah Qureshi, Chairman of PCGA, said the cotton consumption by domestic textile mills in Pakistan is likely to surge to 13 million bales of 170 kg each, compared to the current consumption of around 11 million bales per season.
The approval of EU package for Pakistan by WTO's Council for Trade in Goods (CTG) would boost export orders for yarn and fabrics, which would, in turn, raise the cotton consumption of spinners and textile mills across Pakistan, he said.
This factor, along with the current trend of rising international prices, would result in an increase in the prices of cotton in the domestic market to PK Rs. 6,500-7,000 per maund (1 maund = 40 kg), he added.
The PCGA Chairman said cotton growers and ginners would now get fair returns on their produce.
The EU nations are the largest trade partners of Pakistan as they account for over 30 percent of the country's total exports, Mr. Qureshi said.
Textiles constitute more than 70 percent of Pakistan's total exports to EU countries and raw cotton as well as value-added textile products will stand to gain the most due to the latest WTO decision, he added.
Currently, Pakistan exports goods worth €3.5 billion per annum to EU. Of this, the 75 items that are in the EU list alone account for about €921 million each year.
Fibre2fashion News Desk - India