Imports of Textile Machinery in Pakistan Are At Record Lows

According to Business Recorder, a Pakistani publication, the import of textile machinery in Pakistan fell by 59 percent in March, which was mainly because of a significant decrease in textile exports and output.

With strict laws and energy shortfalls, investors are now ready to relocate their existing manufacturing to countries like Bangladesh and elsewhere in the world, where conditions are more favorable. Pakistan’s import of textile machinery fell by 59 percent in March 2012 to 19,4 million dollars. In March 2011 textile machinery imports netted out at 47,1 million dollars, according to Pakistan Bureau of Statistics.Compared to February 2012, the imports of machinery fell from 45,3 million dollars.

Looking at the statistical data for the fiscal year starting on July 1, Pakistan imported textile machines for 316 million dollars in the 11-12 fiscal year, which is a decrease of 56.25% from the same period in the 10-11 fiscal year.

Local specialists and market experts say that the present negative business environment does not motivate investors to expand their existing factories and plants, but rather have them relocate their businesses in countries with reliable sources of energy and business-favoring government policies.

Source: Business Recorder [www.brecorder.com]

Textile World News: Cotton Price to Remain Stable

According to the data released by the Office of the Textile Commissioner of India, this cotton season (October-September 2012), cotton production would be at 345 lakh bales of which 95 lakh bales have already been exported and a further 20 lakh bales are expected to be exported.

This would amount to an availability of 230 lakh bales of cotton for domestic consumption for this season and a drop of over 11% in the cotton available for consumption in comparison with the last cotton season. Despite this, cotton prices are unlikely to go up in the short term as most textile companies are cautious in buying raw materials.

According to the latest data available with the Confederation of Indian Textile Industry, cotton prices (average spot prices of Shankar-6 variety) are trading at a discount of around 17% at Rs 34,677 per candy on a year-on-year basis.

The fall in cotton prices was due to the conscious decision many textile companies in the industry's value chain to avoid new orders. These companies, which purchased large quantities for future use, had been unable to get rid of the inventory due to weak demand for apparel in 2010-2011.

According to an analysis of the Confederation of Indian Textile Industry, in the December 2011 quarter itself, textile and clothing production showed no growth. Textiles and apparel production fell by 3.2% and 6.8%, respectively in October, the seventh consecutive month of decline.

There is still a pile of unsold inventory with most companies. One indication of this is the extended end-of-season-sale of apparels, which has gone well beyond January this year. Hence, there is little chance of heavy buying this cotton season unlike in the past. Also, there is a high possibility that apparel demand in the US and European markets will be subdued due to the end of the festive season.

Source: economictimes.indiatimes.com