PAKISTAN’S COTTON SHORTAGE FORCES TEXTILE PLANT CLOSURES
More than 20 textile plants in Pakistan have shuttered operations since last month, due to a shortage of raw cotton, and high energy and raw material costs, according to the Yarns and Fibers Textiles Exchange, which cited Just-Style.
Pakistan’s textile industry annually consumes 2.7m tons of raw cotton, but last year raw cotton production in the country remained at 2.1m tons. The shortage pushed cotton prices in the domestic market by 90% from the start of the crop season in September last year.
Gohar Ejaz, Chairman of the All Pakistan Textile Mills Association (APTMA) told Just-Style that the industry has been losing business to its global competitors, due to a 15% duty on the export of yarns and soaring raw cotton prices in the country, and textile mills are unable to import cotton at international prices.
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