Textile exports undergo decline in average unit price
December 12, 2012
KARACHI: The declining trend in the world cotton prices has taken its toll on Pakistan’s textile and clothing exports as almost all textile categories have undergone dip in the average unit price (AUP), suggests the data issued by the Trade Development Authority of Pakistan (TDAP). According to the details, the average unit price of raw cotton decreased by 19.05 percent during July-October 2012-13, cotton yarn by 10.62 percent, hosiery by 7.18 percent, and bedware by 5.07 percent, while average unit price of towels dropped by 6 percent. However, readymade garments observed an increase of 6.03 percent in its AUP in the four months. “It was just a base effect as cotton prices were quite higher last year, which have now come down by over 50 percent,” said Amir Hussain Siddiqui at TDAP. He said that rates of textiles depended upon cotton prices and decline in AUP of local products was nothing serious. In November, world prices for raw cotton decreased to 82.5 cents per pound, a significant fall compared with the last year when the price stood at over $2. The cotton outlook experts noted that the raw cotton price remained stable in autumn despite quite high expectations of buyers who hoped the price would fall. Partly, this is explained by the fact that the massive sales of raw cotton in cotton producing countries, first of all, in India, did not yield any price reduction effect. India’s cotton corporation, which has already said it is ready to intervene and maintain prices for raw cotton, will not allow the prices to fall. The State Reserve Bureau of China is also preventing price falls by buying cotton at a rapid pace, thus maintaining demand for cotton. Overall textiles and clothing exports during the period under review stood at $4.392 billion, up 4.78 percent compared with $4.192 billion during the same period last year.