KARACHI: The millers, spinning and private sector commercial companies imported around 4.8 million cotton bales from USA, India, Brazil and central Asian countries during the last fiscal July-June 2007, the traders and importers said on Saturday.
The country produced around 12.5 million cotton bales during July-June 2007 while the demand by textile sector stood around 15.5 million bales. The shortfall was met by the imports.
Keeping the past experience, the economic managers of the country on repeated calls by the Ministry of Textile Industry (MINTEX) and local textile industry allowed import of cotton through land route from neighbouring countries including India to reduce the cost of production and cost of import. With the issuance of notification the actual imports would take place and much cheaper cotton would be available to the industry for its consumption.
Ministry of Commerce (MoC) in May 2007 allows import of long staple cotton through land route from India and Uzbekistan. The import of long staple cotton through land route from India would reduce the cost of import and would help local textile industry to enhance its production and its value addition for increase in textile exports.
Long staple cotton will be importable through land route as well. Earlier government has allowed the import of cotton and cotton yarn from India through seas or air. Cotton imported through these means was expensive for the local industry, a senior trader Ghulam Rabbani said. The lint imported from India and United States dominated the cotton market’s volumes during last fiscal year.
“This is not an end to import and we must be ready for a good quantity still to arrive in the country, around 45,000 cotton bales kept arriving,” he added. The country imported around Rs 30 billion worth cotton bales during same period from the foreign buyers.
Mr Rabbani said the federal government has fixed the cotton production target at 14.14 million bales for the new crop.
He said the federal government has fixed cotton sowing target at 8.031 million acres, 6.326 million acres for Punjab and 1.581 million acres for Sindh. NWFP and Balochistan will share the remaining 0.14 million area for cotton production. He said Punjab is likely to produce 11 million bales while Sindh will produce three million bales. Despite the government’s target for the crop season 2007-08, there would be a shortfall of around 3.4 million bales.
During July-June 2007, the cotton yarn exports stood around 619,400 metric tonnes as against 609,680 metric tonnes in the same period last year, cotton cloth export stood around 2036,770 (in thousand square metres) as compared to 2406,594, Bedwear exports stood around 333,895 metric tonnes as compared to 338,686 metric tonnes.
The export of readymade garment stood around 37,496 (in thousand dozen) as compared to 34,045 in same period last year.
Informa economics projected that USDA raised old crop world ending stocks for 06/07 by 980,000 bales to 56.39 million bales. World production for 07/08 was lowered to 115.89 million bales down 110,000 bales from May. World consumption was increased to 127.41 million bales up 410,000 bales from a month earlier.
The unaccounted was left at 5.84 million bales. World ending stocks increased 520,000 bales to 51.23 million bales.
The beginning stocks were 56.39 million bales and the ending stocks are forecast to be 51.23 million bales, which translates to a draw down of 5.16 million bales, normally a bullish omen.
Cotlook reported that at the biennial China international cotton conference, a senior Chinese official indicated that the 06-07 lint outturn may be close to 7.1 million tonnes (32.6 million bales) or larger. This compares to the June USDA estimate of 30.90 million bales. China import activity is expected to jump over the near-term as the trade sees extremely tight stocks in China and a strong world demand for China textiles.
China’s national bureau of statistics released its cotton planting intention survey in 2007. The report showed a small increase over 2006. Xinjiang, which is one-third of china’s total acreage was up 11 percent or 140,000 hectares from 2006.
The country produced around 12.5 million cotton bales during July-June 2007 while the demand by textile sector stood around 15.5 million bales. The shortfall was met by the imports.
Keeping the past experience, the economic managers of the country on repeated calls by the Ministry of Textile Industry (MINTEX) and local textile industry allowed import of cotton through land route from neighbouring countries including India to reduce the cost of production and cost of import. With the issuance of notification the actual imports would take place and much cheaper cotton would be available to the industry for its consumption.
Ministry of Commerce (MoC) in May 2007 allows import of long staple cotton through land route from India and Uzbekistan. The import of long staple cotton through land route from India would reduce the cost of import and would help local textile industry to enhance its production and its value addition for increase in textile exports.
Long staple cotton will be importable through land route as well. Earlier government has allowed the import of cotton and cotton yarn from India through seas or air. Cotton imported through these means was expensive for the local industry, a senior trader Ghulam Rabbani said. The lint imported from India and United States dominated the cotton market’s volumes during last fiscal year.
“This is not an end to import and we must be ready for a good quantity still to arrive in the country, around 45,000 cotton bales kept arriving,” he added. The country imported around Rs 30 billion worth cotton bales during same period from the foreign buyers.
Mr Rabbani said the federal government has fixed the cotton production target at 14.14 million bales for the new crop.
He said the federal government has fixed cotton sowing target at 8.031 million acres, 6.326 million acres for Punjab and 1.581 million acres for Sindh. NWFP and Balochistan will share the remaining 0.14 million area for cotton production. He said Punjab is likely to produce 11 million bales while Sindh will produce three million bales. Despite the government’s target for the crop season 2007-08, there would be a shortfall of around 3.4 million bales.
During July-June 2007, the cotton yarn exports stood around 619,400 metric tonnes as against 609,680 metric tonnes in the same period last year, cotton cloth export stood around 2036,770 (in thousand square metres) as compared to 2406,594, Bedwear exports stood around 333,895 metric tonnes as compared to 338,686 metric tonnes.
The export of readymade garment stood around 37,496 (in thousand dozen) as compared to 34,045 in same period last year.
Informa economics projected that USDA raised old crop world ending stocks for 06/07 by 980,000 bales to 56.39 million bales. World production for 07/08 was lowered to 115.89 million bales down 110,000 bales from May. World consumption was increased to 127.41 million bales up 410,000 bales from a month earlier.
The unaccounted was left at 5.84 million bales. World ending stocks increased 520,000 bales to 51.23 million bales.
The beginning stocks were 56.39 million bales and the ending stocks are forecast to be 51.23 million bales, which translates to a draw down of 5.16 million bales, normally a bullish omen.
Cotlook reported that at the biennial China international cotton conference, a senior Chinese official indicated that the 06-07 lint outturn may be close to 7.1 million tonnes (32.6 million bales) or larger. This compares to the June USDA estimate of 30.90 million bales. China import activity is expected to jump over the near-term as the trade sees extremely tight stocks in China and a strong world demand for China textiles.
China’s national bureau of statistics released its cotton planting intention survey in 2007. The report showed a small increase over 2006. Xinjiang, which is one-third of china’s total acreage was up 11 percent or 140,000 hectares from 2006.
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