As the cotton production rate diminishes day by day, it is getting difficult to manage the demand and supply gap. Due to more demand and little produce, the rates are rocketing sky high which is severely affecting the value-added garment sector. Therefore, Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has plead for a duty-free import of fabric along with yarn.
“A huge number of export orders are being received by the value-added garment industry; however, exporters are not accepting the orders for the calendar year 2021 due to skyrocketing price of fabrics in the country along with short availability, especially of the denim fabric”, said Adeeb Iqbal Shikeh, PRGMEA Vice Chairman and north zone head.
It is to be noted that price of cotton of Sindh were Rs10,000 to Rs10,700 per maund. Cotton of Punjab was sold at Rs10,200 to Rs11,000 per maund, while lint from Baluchistan was sold at Rs10,500 per maund. Prices also increased in Brazil, Argentina, Central Asia and India. Cotton production in India is expected around 37 million bales. Cotton production in Pakistan came down to 5.5 million bales from as much as 15 million bales recoded annually in previous years.
As a result of the hike in prices, the fabric rates have also increased and on top of that, brokers are also stocking. PREGMA has appealed to the government to take action and ban all the export of fabric and yarn along with permitting duty free import of cotton yarn.
