43 million towels orders diverted to India and Bangladesh

Pakistan exported US $ 131.54 million towel products during July-September of the current fiscal year as compared to $174.26 million during the same period of last fiscal year. This depicts a slump of $43 million or 25%.

These $43 million worth of export orders have been diverted to India and Bangladesh during the first quarter of the current fiscal year due to high cost of production in the wake of soaring prices of cotton and cotton yarn.

Though high cost of production is an old issue now, the present surge in the cotton and cotton yarn prices have made the towel products further costlier for exporters to finalize export deals with foreign buyers. In addition, they said, the country received another huge set back in the shape of fresh diversion of $4 million export orders of towel products toward India and Bangladesh in November due to break of deal with an important Italian buyer.

Chairman of Towel Manufacturers Association (TMA) Muhammad Muzzammil Hussain linked the persistent decline in exports of towel products with increasing cost of production and indifferent government policies. A major chunk of export orders of towel products went in favour of other regional competitors, due to the soaring prices of cotton and cotton yarn in the country.