Energy crisis affecting cotton, yarn exports
Industry sources said that default by Pakistani textile mills in fulfilling and timely delivery of yarn export orders was gradually increasing mainly due to continued electricity load shedding and gas shortage.
They said the delay in export of goods by Pakistani exporters had provided some opportunities to India and now leading importing countries like China, Bangladesh were moved toward India for timely import of yarn.
In this regard a leading cotton trader Ihsan-ul-Haq informed that during last two months the Indian textile mills had received record cotton yarn export orders, which was a warning bell for Pakistan exports of cotton yarn. As per initial estimates, the target of textile exports set for the current financial year as 16 billion dollars seems unachievable and it apprehended that shortfall in Pakistan’s textile exports may reach 3.5 billion dollars below the target.
According to the statistics issued by the Indian Director General Foreign Trade, during November 2012 registration for cotton yarn export reached 100 million kg, highest ever in the Indian history and it was also 32 percent higher than November 2011 and five percent higher than October 2012, he pointed out.
He said Indian government was making all out efforts to increase its cotton exports that included relaxing 30-day period for export of lint to Pakistan through land route and lifting of regulatory duty for import of Indian cotton yarn by Turkey after mutual trade negotiations, whereas in Pakistan the containers carrying export items were being forcibly confiscated and used for blocking roads.