Pakistan Tops US Cotton Import Chart with Record 1.192M Bales

Pakistan has become the largest import partner of USA cotton for the first time in history, it was concluded from the disclosed facts and figures of USDA. From Dawn, it is viewed that the foreign sales target has arrived at a time when many Pakistani textile mills are experiencing a decline in local production and poor quality due to unfavorable weather conditions. This year alone the country has imported 1.192 million bales, each weighing 160kgs thus overtaking Vietnam, Turkey, and China.

Pakistan’s textile sector has bought 3.0 to 3.5 million bales from other countries including the United States and Brazil and has more contracts on the way. Speaking of total imports, the specialists believe that they may reach 5,5 million bales this year. For example, Cotton Ginners Forum chairman Ihsanul Haq said that this rise is due to the 18 percent sales tax on local white lint while imported cotton enjoys zero tax, providing a huge buying advantage.

This has made the situation in Minamotth difficult for local cotton producers due to reliance by mills on imported cotton produce. This structure has restrained the domestic prices for cotton and this has a negative impact on the local producers. Making it even more confusing yarn imports have also been taken out of the sales tax net with information availing itself that Indian yarn is entering the country through Dubai.

Vietnam occupied second place with an import volume of 0.96 million bales and Turkey occupied third place with 0.67 million bales. The fourth largest importer is Switzerland taking 0.65 million bales and Mexico with 0.59 million bales. Another friend and strategic partner, China is the next major importer having imported 0.52 million bales while India the world’s largest producer of cotton imported 0.258 million bales showing how advanced Pakistan is in importing cotton from the US.