Sajjad Mazahir, General Manager ,Keywin Trading Ltd China office, delivered his report Indian and Pakistani cotton and cotton yarn market operation status and outlook

His report is divided into two parts:

Firstly, the Indian textile market was introduced. The production in 2022-2023 is estimated to be around 30-31 million bales. The current weather conditions have affected cotton production in India. India is the second largest spinning hub in the world, primarily exporting to the European and American markets, with increased cotton yarn exports. The 2023-2024 is expected to face various challenges, such as competition from Bangladesh, the removal of preferential status for exports to the UK, and unfavorable weather conditions. However, India also has some opportunities, such as being competitive in certain coarse-count and medium count yarns, offering BCI, organic, and fair trade yarns, stable exchange rates, and favorable bank interest rates for long-term purchases.

Next, the textile market in Pakistan was introduced. In 2022, the cotton production in Pakistan was affected by heavy rains and floods, resulting in lower production. However, there is a 40% increase expected in cotton cultivation area in 2023-2024. The current state of the cotton and cotton yarn market in Pakistan was discussed, mentioning that Pakistan has established spinning capacities. The textile industry in Pakistan faces a series of challenges, including low foreign exchange reserves, difficulties in importing raw materials, high inflation and bank interest rates, low demand for medium and low-value textile products, and increased operational, financing, and manpower costs. The opportunities in Pakistan include commercial yarn mills focusing on yarn exports to offset raw material imports, upgrading textile industry equipment, offering BCI, organic cotton, Primark, PSCP, and regenerated cotton with complete traceability.