KARACHI: The local cotton market remained stable on Wednesday. Market sources told that trading volume was low.
The All Pakistan Textile Mills Association (APTMA) Punjab Chairman Abdul Rahim said that the gas crisis and nationwide power breakdown has forced the shutdown of textile mills across the province.
The APTMA chairman, in a statement, said that the textile industry which was already facing problems due to gas crisis has now completely shut down due to the suspension of electricity caused by a nationwide power blackout.
“There is a chance of cancellation of export order due to shutdown of mills,” he said.
The APTMA chairman has demanded Prime Minister Imran Khan to immediately take notice of problems being faced by industry and restore gas supply to the textile industry.
Meanwhile, Cotton prices in Pakistan’s domestic market hit a 10-year high of Rs. 11,000 per 40 kgs over the past week.
A national daily reported the cause to be most likely the decreasing production and rising demand. The import orders for 4.2 million bales have also been finalized, the news report said.
A decline in the production led millers to keep buying from the local market, while ginners preferred selling due to increased prices. Put together, dealers said, these factors caused cotton rates to shoot up by Rs. 400 to Rs. 500 per 40 kgs (also known as one maund). Prices of cotton yarn and polyester also followed suit.
Meanwhile, Artistic Milliners, a Pakistani textile company and producer of renowned global brands, has acquired a denim factory in Commerce, California.
The Pakistani company plans to invest in the facility and grow the business into a state-of-the-art design and production hub based on Supply Chain 4.0 principles and 360 design development solutions.
The new factory expands Artistic Milliners’ global footprint and accelerates the company’s speed-to-market capabilities while providing design-at-source at a time when businesses have curtailed travel during the COVID-19 pandemic.
As the first Pakistani denim company, with an operational factory in Los Angeles, Artistic Milliners is raising the profile of Pakistan as a sourcing destination.
Under the new name Star Fades International (SFI), the business continues to provide finishing services to a customer roster that ranges from large international retailers to specialty premiums, the company said in a statement.
Moreover, Towel Manufacturers’ Association (TMAP) of Pakistan chairman Feroze Alam Lari said despite of big export orders available with the value-added textile sector of the country, the textile manufacturers and exporters cannot operate to their capacity due to shortage of cotton yarn, which is basic raw material for the textile industry.
It was very dangerous for the national economy that cotton production has fallen to 5.5 million from 15 million bales. Due to scarcity of cotton yarn in the country its price touched the sky and the cost of cotton yarn reached its peak during the current decade and the bullish trend of cotton yarn price pushing the exporters towards unviable situations and un-competitiveness in the international market.
However, a few days back authority only removed 5 percent regulatory duty on import of cotton yarn which helped little bit to the export-oriented sector, but now we as an association request to the concern authority to kindly abolish all taxes and duties on the import of cotton yarn which will be the life line for the value added textile industry.
Cotton Analyst Naseem Usman told that Pakistan Cotton Ginners Association has requested the Prime Minister Imran Khan to establish an autonomous Cotton Control Board which must be supervised directly by Prime Minister to increase production by 20 million bales. It should be monitor research, sowing, pest management, picking, ginning, spinning to value addition to protect the interests of all stake holders.