More Related Content Similar to Ecc impose duty 2019 Similar to Ecc impose duty 2019 (20) More from Dr-Khalid Abdullah More from Dr-Khalid Abdullah (20) Ecc impose duty 20192. Cotton Economy of Pakistan
• GDP of Pakistan US $ 305 Billion (2017-18)*
– Cotton contribution 1%~1.7% (US$ 3~5 billion)
• Share of agriculture in GDP : 18.9%*
– Cotton in value added agriculture: 5.5%
• Share of manufacturing in GDP : 13.6%*
– Large Scale Manufacturing: 80%
• Textile: 20.9% (Cotton: 96%)
• Employment: 42.3% of labor force*
– Earning of 85-90 billion annually, mostly by rural
women folks
Source: *Economic Survey of Pakistan, 2017-182
3. Cotton Economy of Pakistan
3
0
2
4
6
8
10
12
14
16
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Production (Million Bales) Agri. Growth (%) GDP Growth (%)
4. Activity Expected Income
Planting of Cotton 8-10 billion
Weeding and Hoeing 4-5 billion
Spraying 15 billion
Picking 60-65 billion
Total: 85-90 billion
Edible Oil 74% of domestic req.
Fire wood 4-5 million tons
Poultry and Livestock
feed raw material
3-4 million tons
It is not just textiles raw material…..
4
5. Cotton Prices 2015-16
4000
4500
5000
5500
6000
6500
7000 11.05.2015
18.05.2015
22.05.2015
01.06.2015
05.06.2015
11.06.2015
18.06.2015
24.06.2015
02.07.2015
08.07.2015
14.07.2015
24.07.2015
30.07.2015
05.08.2015
12.08.2015
19.08.2015
26.08.2015
03.09.2015
10.09.2015
16.09.2015
28.09.2015
02.10.2015
08.10.2015
14.10.2015
23.10.2015
02.11.2015
06.11.2015
13.11.2015
19.11.2015
25.11.2015
02.12.2015
10.12.2015
17.12.2015
29.12.2015
7. Year
Ave Cotlook A
Index (Rs./40
kg)
Ave KCA
Price
(Rs./40 kgs)
Crop Volume
(Mil. Bales)
Crop Value (Rs. Billion)
Farmers Loss
(Rs. Billion)
As per
Cotlook Price
As per
KCA Price
2018 8260 7034 10.847 381 325 56
2017 7149 6381 12.600 383 342 41
2016 6704 6072 11.039 337 305 32
2015 6104 5139 10.859 302 254 48
2014 6707 5943 13.488 412 365 47
Source: i) Cotlook, (ii) KCA, (iii) MinTex
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Back
8. 8
Average cost of seed cotton (per 40 kg)
production in Punjab & Sindh; & Prices
Year Punjab Sindh Avg Prices
2009-10 1450 1296 1800
2010-11 1720 1582 4050
2011-12 2208 1924 2400
2012-13 2479 2213 2600
2013-14 2593 2330 2950
2014-15 2901 2587 2450
2015-16 2936 2599 2300
2016-17 3058 2642 2950
2017-18 2967 2546 2996
2018-19 2797 2628 3795
2919-20 3198 2929
9. Cost of cotton production (USD/kg of lint)
0.68
0.97 1.05 1.05
1.5
1.14
0.6
2.17
1.18
1.03
0.86
1.88
0
0.5
1
1.5
2
2.5
ICAC 2016
9
10. Cotton Production, export and import
(million bales)
10
Year Production Export Import
2008-09 12.06 0.46 2.46
2009-10 12.70 0.92 2.01
2010-11 11.70 0.87 1.85
2011-12 13.6 1.51 1.01
2012-13 13.03 0.54 2.53
2013-14 12.77 0.67 1.57
2014-15 13.96 0.55 0.91
2015-16 9.92 0.29 2.45
2016-17 10.67 0.15 2.71
2017-18 11.93 0.21 3.59
2018-19 (Jul-Apr) 9.86 0.0671 1.802
2019-20 12.72
12. • Custom Duty (@3%) Additional Custom Duty
(@2%) and Sales Tax (@5%) withdrawn w.e.f.
1-2-2019.
• Same duty regime may be restored w.e.f. 01-
07-2019
Or
• Regulatory Duty @10% may be imposed w.e.f.
01-07-2019