Recently, Pakistan’s textile factories producing bedsheets and towels for an exports are now closing its operations because of shortage of cotton crop due to havoc flood.
Around 100 small scale factories have closed its operations because of lackness of fine quality cotton, increasing fuel prices and poor recovery of payments from buyers in flood affected areas, as per Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association (PTEA), as saying.
Whereas, large scale factories that are gives goods to global brands like Nike Inc., Adidas AG, Puma SE, Target Corp., are less affected as they have backup inventory available.
Devastating floods caused by record monsoon rains and glacial melt which resulted as agricultural land in North and South areas and especially Sindh and Balochistan, destroyed entire crops including cotton.
However, destructions resulted in declining 24% YoY, according to the data recently shared by PCGA (Pakistan Cotton Ginner’s Association).
The hardest hit is for Sindh as it has reported 41% decline in cotton arrival.
According to the last month, APTMA (the All Pakistan Textile Mills Association) estimated 3.5 million bales of cotton loss, 36% of $1.5 billion loss in production because of rains and floods in Pakistan.
