COTTON & TEXTILE EXPORT

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
June 25 - July 1, 2012

Economic development is one of the main objectives of every society in the world and economic growth is fundamental to economic development. There are many contributors to economic growth. Export is considered as one of the very important contributors among them. There are also some concerns about the trade, especially between the primary and industrial goods exporting countries where the terms of trade are deteriorated against the poorer countries.

Pakistan's total exports during January 2012 amounted to Rs172,701.19 million as against Rs165,651.64 million in December 2011 and Rs197,668.88 million during January 2011 showing an increase of 4.26 per cent over December 2012 but lower by 12.63 per cent January 2011. Exports during July -January, 2012 totaled Rs1,149,445.39 million as against Rs1,124,315.12 million during the same period of last year (SPLY) showing an increase of 2.24 per cent.

COTTON

Cotton fabrics maintained its first position in its group during January 2012 from its same position in the previous month. During this month, its exports amounted to Rs16,027.81million as against Rs16,217.11 million in December 2011 and Rs17,692.59 million during January 2011 showing a decrease of 1.17 per cent over December 2012 and by 9.41 per cent over January 2011. During July - January, 2012 of current financial year 1,098,600,000 sq. meters of cotton fabrics valued at Rs116,815.23 million were exported as against 1,185,008,000 sq. meters valued at Rs114,082.95 million during SPLY showing a decrease of 7.29 per cent in terms of quantity but higher by 2.39 per cent in terms of value.

During July - January, 2012 the average unit price of cotton fabrics increased to Rs106.33 per sq. meter from Rs96.27 per sq. meter during SPLY showing an increase of 10.45 per cent. Main buyers of cotton fabrics during July - January, 2012 of current financial year were Bangladesh (Rs17,257.35million), Cambodia (Rs12,356.15 million), Italy (Rs7,041.93 million), Turkey (Rs6,603.39 million), U.S.A. (Rs6,062.27 million), Germany (Rs4,963.69 million), Sri Lanka (Rs4,738.46 million), South Korea (Rs3,721.61 million), Spain (Rs3,324.72 million) and South Africa (Rs3,174.41 million). Their total take-off accounted for 59.28 per cent of total exports of cotton cloth as compared to their combined share of 60.70 per cent during SPLY.

On the other hand, cotton yarn came up to second position in its group during January 2012 from its fourth position in the previous month. Its exports in this month amounted to Rs14,167.03 million as against Rs12,064.51 million in December 2011 and Rs18,913.77 million in January 2011 showing an increase of 17.43 per cent over December 2012 but a decrease of 25.10 per cent over January 2011.

During July-January, 2012 exports of cotton yarn amounted to Rs82,659.71 million as against Rs102,661.51 million in SPLY showing a fall of 19.48 per cent. In terms of quantity 294,592,000 Kg. of cotton yarn was exported during July - January, 2012 of current financial year as against 324,873,000 Kg. during SPLY showing a decrease of 9.32 per cent. The average unit price of cotton yarn for the period July - January, 2012 of current financial year was Rs280.59 per Kg. as against Rs316.01 per Kg. in SPLY showing a decrease of 11.21 per cent. China (Rs47,862.37 million), Hong Kong (Rs7,865.42 million), Bangladesh (Rs3,785.93 million), Japan (Rs3,104.25 million), Korea Rep. of (Rs3,025.42 million), Portugal (Rs1,951.53 million), Turkey (Rs1,543.42 million) and Italy (Rs1,386.37 million), were major buyers of cotton yarn during this period. Their combined share accounted for 85.32 per cent of total exports of cotton yarn as compared to their combined share of 84.93 per cent during SPLY.

TEXTILE

During January 2012, the some selected commodities of textile manufactures contributed 47.01 per cent of total exports in which the share of knitwear (7.91 per cent), articles of apparel & clothing accessories (excl. knitwear) (7.62 per cent) and bed wear (6.44 per cent).

Pakistan's textile exports registered an increase of $100 million in April 2012 against March 2012 month on month basis, surging to $1.14 billion in April against approximately $1 billion in March 2012, although the textile industry can easily meet previous year target if the gas supply continues and sincere efforts are made to increase supply.

The All Pakistan Textile Mills Association (APTMA) has expressed the hope that the government would continue with uninterrupted supply of energy, both electricity and gas to the export-oriented, labour and capital intensive textile industry to achieve $1.2 billion per month ahead. It is though not possible to achieve previous year record exports of $14 billion, but still it would be closer to the last year exports if energy supply continues. However, it was expected that the exports in quantitative terms are still on decline as of July-April 2012 against corresponding period including fabric by 15 per cent, knitwear by 26 per cent, bed wear by 20 per cent and readymade garments by 27 per cent. Further, there is 10 per cent shortfall in value terms during the same period. The export shortfall has crossed $1.1 billion in July-April 2012 against the corresponding period. It may be added that all these subsectors of textile value chain are consumers of yarn, meaning thereby decline in exports is directly impacting the spinning industry.

EXPORTS

COTTON JULY - JANUARY, 2012 JULY - JANUARY, 2011
QUANTITY
(000' SQ. M.)
VALUE (MILLION) QUANTITY
(000' SQ. M.)
VALUE (MILLION)
Cotton Fabric 1,098,600 116,815.23 1,185,008 114,082.95
Cotton Yarn 294,592 82,659.71 324,873 102,661.51
MONTHS JANUARY, 2012
(MILLION RS.)
DECEMBER, 2011
(MILLION RS.)
JANUARY, 2011
(MILLION RS.)
JAN, 2012 TO JAN, 2011
(CHANGE %)
Textile Manufactures 81,195.32 78,197.46 96,714.72 -16.05