There is a spike in cotton prices as Pakistan is among the world’s top recipients of foreign orders post Covid-19 shutdown.
The country which has been among the few countries of the world that use to produce the maximum quantity of cotton is now bound to import it from other countries. This wonder has happened currently when the Pakistan textile industry received bulk orders from abroad.
Due to Covid-19, international buyers are preferring to purchase textile products from Pakistan instead of India and Bangladesh. The Pakistan textile industry is facing an acute shortage of cotton of good quality therefore, local textile industrialists have decided to import cotton from Brazil, Tanzania, and some other African countries.
Moreover, the prices of local cotton have also gone up in Pakistan with the new bulk orders. The rise in the price of cotton in the country is from Rs 200 to 250 per maund. Now the price of cotton per mound is Rs 9250/maund in Punjab and Rs 9100 in Sindh which likely to up further in the current month.
Ahsan ul Haq, the chairman Cotton Ginners Forum told that at present, the textile industry of Pakistan has received the biggest order of history but the main hurdle is in form of unavailability of quality cotton in the country. Due to a lack of planning and some other issues, the growth of cotton was replaced by the growth of sugar cane.
Ahsan ul Haq is of the strict opinion that the implementation of the rules of crop zoning must be acted upon and the zones which are meant for growing cotton may be used for this very purpose. After lessening the growth of sugar cane, we can be saved from pollution and water can also be saved.
The Ministry of Finance has also started paying the income tax and sales tax refunds to the textile industry which could not be refunded for a long time and as such the textile industry now seems to be on strong footings.
The attack of pink bollworms and whiteflies is likely on the cotton crop of Punjab which will affect the quality and quantity of cotton. The agriculture department needs to take urgent precautionary measures in this regard.
In India, the situation of the Covid-19 is not satisfactory and this is the fact that India is a big exporter of not only textile-related products but also exports a lot of other items that are produced/grown in Pakistan. This is the most appropriate time for Pakistan to make suitable/favorable policies to export different products of the country so as to earn heavy foreign exchange.