Friday, April 19, 2024

Pakistan’s Cotton Yarn Export to China Crosses $100 Million in Jan-Feb 2024

Pakistan’s cotton yarn exports to China have reached an impressive milestone, exceeding $100 million in the first two months of 2024. This achievement is seen as a positive sign for Pakistan’s cotton yarn exports to the rest of the world, as experts anticipate further growth this year due to favorable crop yields.

According to Pakistan’s Ministry of Commerce, data from the General Administration of Customs of China shows that China imported over $100.98 million worth of cotton yarn from Pakistan in the initial two months of 2024. This represents a significant increase of around 98% compared to the same period last year.

Specifically, uncombed single cotton yarn, which falls under the commodity code 52051200 and contains at least 85% cotton with a yarn length between 232.56 and 714.29, recorded exports of $57.77 million in January and February of 2024. Pakistan stands as the second-largest exporter of this type of cotton yarn after Vietnam.

Furthermore, data indicates that uncombed single cotton yarn, categorized under commodity code 52051100 and consisting of at least 85% cotton with a yarn length of 714.29 or more, saw exports totaling $41.95 million in the first two months of 2024. This marks a substantial increase from the $14.54 million recorded during the same period last year.

Sajid Mahmood, the Head of the Transfer of Technology Department at the Central Cotton Research Institute Multan, emphasized the significance of Pakistan’s yarn business with China. He highlighted the opportunity for Pakistan to diversify its exports by offering high-quality variants such as cotton, carded, and combed yarns in the Chinese market.

Despite the benefits of a Free Trade Agreement with China, Mahmood noted that Pakistan faces tough competition from India, particularly in non-Siro yarns, despite India having a 3.5% higher duty. Additionally, Vietnam poses a challenge due to similar duty-free privileges, although its reliance on imported cotton exposes vulnerabilities in its supply chain.

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