Page 66 - TEXtalks January/February 2022

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supply chain. Iqbal Khurram also agreed with Asif hoped that the crop is healthy because the prices
Inam and said that polyester is not sustainable. depend on the cotton yield, and higher prices are not
However, if there were no cotton to buy due to favorable for anyone, including Pakistan.
logistic issues, production issues, or others, the
polyester market would rise, which could cause Answering the sustainability of the cotton, Shayyan
significant danger for the cotton sector and the Abdullah said that even before the COVID-19
environment. pandemic, the buyers and retailers were asking for
sustainable cotton. However, with the pandemic, the
Regarding cotton, Asif Inam said that organic cotton demand has further been strengthened. Many
is the best program due to its sustainable impact brands have set some targets to become 100%
with no fertilizers and healthy soil. Unfortunately, India sustainable. For example, Inditex is saying that by
has produced some fake organic cotton, ringing an 2023, they will be using 100% sustainable cotton.
alarm among the international buyers who were BESTSELLER has stated that by 2025, their
earlier paying the extra money for this. In Pakistan, products will have 30% organic cotton along with
the Balochistan region has excellent potential for
100% sustainable cotton. Therefore, the demand for
AD organic cotton production. sustainable cotton is rising. Apart from organic and
sustainable cotton, the brands are looking for
traceability to ensure that they get the right things.
Steven Dyer further said that the best price for cotton
is under $1. Currently, there is a bit of uncertainty
Therefore, the young generation will only buy
regarding the price and comfort range, and however,
it seems that the window will be a bit higher than the sustainable items amid raising awareness. However,
the biggest challenge is that these brands asking for
previous one. Another concern is that the brands traceable and sustainable cotton are unwilling to
and retailers do not want to increase the prices, pay better, making life more challenging for the
putting more pressure on the yarn sector. The spinning section. When the spinners talk about such
industries have to adjust quickly with the prices to things with the farmers, the farmers ask for a
avoid loss. Iqbal Khurram discussed that earlier, premium in return. Thus, paying the premium to
Pakistan was importing cotton from various farmers adds the cost for spinners, while retailers
destinations. With the shipment and logistic issues, are not willing to pay.
the pressure is building.
Steven Dyer agreed with Shayyan Abdullah regarding
Responding to his comments, John Cash said that it the sustainability of cotton, and he said that the
is true that logistic issues are one of the major demand for sustainable cotton is growing globally.
concerns. It might take more than one year to settle Soon, there will be no choice except to grow
Steven Dyer. Global Head. Louis Dreyfus Company, USA John Cash King III. Vice President. Olam Cotton, USA with the COVID-19 until the scenario for sustainable cotton, and the spinners will have to do
transportation comes to normal. Currently, the this for survival as brands and stakeholders ask for
Therefore, the viewers and stakeholders warmly in and replace cotton. Among these opportunists, Steven Dyer discussed that the world witnessed a near 90 cents, everybody was happy. Any price workforce, drivers, shipping lines, loading and traceability, which is better for the planet. Around the
welcomed the cotton panel discussion. man-made fibers are the most feared ones regarding decade of high cotton prices. However, he said that above $1 is not acceptable for a favorable business. unloading the containers, and other operations are globe, the farmers are joining sustainability
their environmental impact. Earlier in 2011-12, the scenario is not different from other commodities. Numerous factors influence the price fluctuations, working under capacity. Therefore, it seems that it campaigns like BCI and others that promise better
The panel included national and international nobody benefited from the situation when the prices The crude oil, energy, agricultural items, and other and it seems complicated that the prices will come might take up to the end of 2022 for the logistic and ethical cotton growing.
experts talking about cotton. Iqbal Khurram chaired were high. Therefore, the prices could be moderate, soft commodities are also getting expensive. Due to down soon. issues to end.
the session, joined by other experts: Carlos Garcia, providing a platform for a win-win situation for the the COVID-19 pandemic, the gap between demand The panel concluded that sustainable cotton is the
John Cash King III, Steven Dyer, Shayyan Abdullah, textile sector and other stakeholders. Iqbal Khurram and supply triggered the cotton prices. The industry Asif Inam also agreed that the industry was not Responding to the reducing cotton crop yield in the only way to move forward for the textile sector. The
and Asif Inam. agreed with the ideas of Carlos and said that when has been used to buying cotton for around 70 cents; happy with the increased cotton prices. For the textile USA, Carlos Garcia discussed that the crop yield awareness campaigns must be done more
the market was in mid 90 cent range, the spinning however, the prices are expected to be higher in the spinners, not buying cotton was out of proposition. reduced to 18.5 million bales which took everyone aggressively to promote sustainable cotton in
Talking about the cotton market and future, Carlos industries enjoyed the perks, and now, increased near future due to the current inflammatory phase. As However, buying at such an elevated price was also with a great surprise. Excessive rain in the southeast Pakistan. The country can produce organic cotton,
Garcia discussed the influence of cotton prices on cotton prices have reduced the profit margins across far as cotton demand is in the market, even the a risk. The retailers have already increased the price delayed crop and other issues behind the reduced and a few organizations are already working in
the profitability of the textile industry's value chain. He the textile supply chain. higher prices are digestible. by 20-25% on different cotton products. The gap is production make it tough to reach higher outputs. Pakistan with various stakeholders. Pakistan's textile
TEXtalks International organized the 4th Inspiring China and India), with thousands of ginning and said that when the cotton prices are below one dollar Shayyan Abdullah discussed the effect of higher being filled with using polyester, predominantly The overdried soil (due to fewer rains) caused sector has enormous potential, and the spinning
recycled polyester. Though recycling polyester is a
Change Conference (ICC) 2021 on October 14, 2021, spinning units producing textile products from cotton. without the fear of significant fluctuations or volatility, John Cash indicated that everyone is worried about cotton prices on the spinning business. Cotton is the good thing, it can not be used as a green alternative delayed sowing in other areas. On the other hand, in sector should coordinate with farmers to accelerate
at Pearl Continent Hotel Lahore. Among various Cotton is the most important cash crop in Pakistan, the profitability of the textile industry, farmers, traders, the cotton prices. He said there has now been a spinning section's raw material. Higher prices could to cotton as it is still polyester associated with areas with excessive rain, the plants grew and made the sustainable drive, which could favor the country
panel discussions, the first panel discussion was and cotton products export accounts for 55% of all and brands remains feasible, which makes them gap between cotton and yarn prices, causing never be favorable for this sector as the spinning various drawbacks. Therefore, the cotton industry leaves more than cotton balls. However, cotton in various aspects. The audience applauded the
themed on cotton. Pakistan is the fifth-largest foreign exchange earnings of the country. Nearly 26% prosper well. However, when the prices increase trouble. There have been energy cutoffs in China, sector cannot stock the appropriate quantity due to should reach out to different government production is dependent on mother nature which panel's efforts and hoped that the session could be a
producer of cotton in the world. It also has the of Pakistani farmers grow cotton, and over 15% of the suddenly, the unsure situations rise, causing a India, and the UK, causing more concern with value fluctuations and limited funds. He also agreed organizations and stakeholders to discourage the could not be according to our desires. Still, the way forward to reach sustainable cotton production
third-largest cotton spinning capacity in Asia (after total cultivated area is devoted to this crop. disturbance in demand and supply. Furthermore, the cotton prices. Furthermore, the logistic situation is production of 18.5 million bales is good, and it is in the country.
high prices also open doors for other fibers to come worsening the case. with the point of Carlos that when the market was increasing polyester consumption in the textile
January/February 2022