Downward cotton crop estimates

The downward revision of cotton crop estimates has started panic among the textile industry, as the price of cotton is certain to increase further with the uncertainty caused by the new estimates.

All Pakistan Textile Mills Association (APTMA) has urged the President to take notice of uncertain situation, triggered by the Federal Minister Agriculture announcement. The surprised announcement of sharp reduction in cotton estimates from 14.14 to 12.80 million bales has caused panic in the cotton circles and Mushtaq Vohra, former Vice Chairman of APTMA added that cotton estimates of the Government are always “doubtful” because of non-application of scientific method, while carrying out such estimates, as these are allegedely compiled in the Government offices instead of visiting the fields to gather accurate information.

Country’s textile industry has the capacity of consuming 15 million bales and with the new estimates of cotton; industry would be importing around 3 million bales to meet the gap. If the import of cotton from India through Wagah borders was allowed, he pointed out, Rs12 billion could have been saved in foreign exchange, which would be beneficial both for Government and private sector.