PRESENTATION ON COTTON STANDARDIZATION SYSTEM

1PAKISTAN COTTON STANDARDS INSTITUTEMinistry of Textile Industry Government of Pakistan

BACKGROUNDPakistan cotton is inherently of good quality but the country loses 10 to 15 % of its intrinsic value (raw cotton and its made-ups) due to :

Improper picking, handling and ginning practices.High degree of contamination in Pak Cotton.Absence of Pricing system based on quality.Non-implementation of cotton standards, classing and grading system. 2

Seed Cotton Grade wise Distribution.43% of Seed cotton is above base grade

49% of seed cotton is Base grade

And only

7.6 % is below Base grade Data based on 8 years study and 1902 million kg of seed cotton3

CONTAMINATION IN COTTON Contamination in raw cotton continues to be the most serious problem affecting the Cotton Spinning Industry.

Credibility LossAccording to ITMF contamination survey report Pak. cotton placed under most contaminated description The country is loosing about 400 to 500 million US$ per annum due to contamination in raw cotton & its made ups.(Source APTMA)Index and value differenceDue to contamination and non-implementation of Cotton Standardization System the entire Pak Cotton is quoted at Index B. Value difference between both the Indices is about 5 to 7 Cents/lbs4

Extraneous Contamination by Origin.

5

OriginsBales contaminated (%) Fibrous contaminants (%) Contaminants (g/ton) Group I (low) Australia, Brazil, China, Mexico, USA20-3560-652-4Group II (moderate) Mozambique, Paraguay, Uzbekistan, West Africa, Zambia 60-85 75-80 5-15 Group III (high) India, Syria, Pakistan, Uganda, Zimbabwe 90-10080-8520-100

ECONOMIC LOSSES AT DIFFERENT STAGES

Raw Cotton= 308 million $

Yarn= 252 million $

Fabrics= 215 million $

Hosiery= 255 million $

Garments/ Made ups = 392 million $

6

Comparative Cotton yarn prices of 20 counts.7

YearPakistanIndiaTurkeyIndonesiaChina2008-091.922.122.722.222.662009-102.512.803.102.783.042010-114.004.257.934.544.452011-123.043.073.503.533.522012-133.053.393.623.253.38

Cotton Out Look pricesInternational Price (29/12/14) = 69.95 cents/lb Pakistans Price = 63.17 cents/lb Difference = 06.78 cents/lbFor a bale of 375 lbs = 25.42 USD13 million bales = 330 million USD 8

PRESENT COTTON SCENARIOInternational competition and post quota regime is calling upon manufacturing processes to control costs, reduce wastages and improving quality levels. To achieve these the spinners require clean and standardized lint, which fulfills their specifications which is only possible through the implementation of cotton standardization system. Cotton standardization system is devised on scientific basis with a view to up-grade Pakistan cotton and the resulting yarn thereby raising its status and value in the high competitive world market. Such an arrangement is of vital importance when vowed in the context of cottons contribution to the national economy and future gains in cotton , which would be possible more through qualitative improvement. This has direct impact and immediate bearings on the entire chain of value addition till the final made ups. Thus providing a boost to the national economy.

9

ACHIEVEMENTSGovernment being congnist upon the problem established PCSI . In the past few years, PCSI has been able to realize significant achievements. Some of which are listed below: Cotton Grades and Standards developed and recognized by the Liverpool Cotton Association. Cotton Standards provided to international and domestic Cotton Associations; Bremen Cotton Exchange, Germany, Liverpool Cotton Association, England, Karachi Cotton Association, All Pakistan Textile Mills Association & Pakistan Cotton Ginners Association. switched over from its traditional variety wise marketing system to quality based marketing system on the basis of PCSI Grades subject to premium /discount. Designed Color Chart for Pak Cotton. (Continued)

10

Trained 230 Cotton Classers and over 2271 cotton selectors in the skills of cotton classing and grading from the public and private sector.

Established 10 Cotton Fibre Testing Laboratories equipped with HVI 1000 Classing, Uster, Switzerland and Shirley Analyzer Machines MK-II, UK at Mirpur Khas, Sanghar, Karachi (Sindh) Rahim Yar Khan, Bahawalpur, Multan, Vehari, Faisalabad, Sahiwal and D.G. Khan (Punjab).

Successful implementation of Grades and Standards at number of Ginneries .

Shifting of Pak cottons to Index A from Index B by producing higher types of cotton(1544, 1505, 1503 I.e., Grade Super, One & Two).

Additional foreign exchange earnings due to export of higher grades of cotton.

To create awareness, published and distributed brochures, informative letters and hand bills in national and regional languages. 11

Cotton standardization Ordinance 2002 / Act 2009 .Promulgated

Cotton standardization rules 2007 Notified.

Made necessary amendment in the cotton control act 1966 to control contamination in cotton and for the mandatory marking of grade and staple length on each bale by the ginners.

KCA switched over from its traditional variety wise marketing system to quality based marketing system on the basis of PCSI grades subject to premium / discount.

12

The quality control arrangements already made.

PCSI established 10 Cotton Fibre Testing Laboratories equipped with High Volume Instruments (HVI) 1000 Classing, Uster, Switzerland and Shirley Analyzer Machines MK-II Atlas, UK at Multan, Bahawalpur, Vehari, Faislabad, Sahiwal, D.G. Khan, Rahimyar Khan (Punjab), and Karachi, Sanghar ,Mirpurkhas (Sindh)

The Provincial Agriculture Departments, Government of Sindh and Punjab have made the necessary amendments in Cotton Control Act/ Rules 1966 for control of contamination in Cotton and mandatory marking of grade and staple length on each bale by the ginners.

PCSI Cotton Fibre Testing Laboratories have been strengthened and are providing on farm/ factory demonstrations on proper picking, handling and better ginning practices to the growers/farmers and ginners.

Technical capabilities for the implementation of cotton standardization system arranged.

13

The quality control arrangements to be made

Agriculture Department, Government of Sindh and Punjab shall implement the Amendment made in the Cotton Control Rules 1966 for the mandatory marking of grade and staple length on each bale by the ginners. The same should be implemented particularly in the districts where PCSI Cotton Fibre Testing Laboratories have been established and gradually extend to cover the entire cotton growing belt.

The buyers and sellers of cotton should purchase cotton on the basis of quality i.e. grade, staple and other fibre properties to promote the use of official Cotton Standards in domestic trade and international commerce on scientifically derived internationally recognized cotton classing, grading and pricing system subject to premium/discount.

Establishing a network of Cotton Fibre Testing Laboratories Equipped with HVIs at district level.

14

VISION

ENHANCEMENT OF PAK COTTON QUALITY THROUGH COTTON STANDARDIZATION PROGRAMME.TO BRING PAK COTTON AT PAR WITH INTERNATIONAL STANDARDS. TO ENSURE REAL INTRINSIC VALUE OF PAK COTTON AND ITS MADE-UPS FROM THE INTERNATIONAL MARKET.17

MISSIONThe implementation of cotton standardization system across the cotton growing belt through:

To train young generation in the skills of cotton classing and grading.promoting the use of official grades/ standards in domestic trade and international commerce.promoting the use of instrumental classification of cotton in-vogue all over the world.switching over to a quality based marketing system on the basis of grade staple length and other fibre properties subject to premium/ discount. 15

STRATEGY

Implementation of the amendments made in Provincial Cotton Control Act / Rules 1966 to control contamination in cotton and mandatory marking of grade and staple length on each bale by the ginners .

Education Awareness campaigns, trainings, on Farm Factory demonstrations in collaboration with stakeholders and Better Cotton Initiative (BCI) WWF-P.

To shift the present marketing system to a quality based marketing system i.e. Grade, Staple Length and other fiber properties subject to premium/ discount.

16

THANK YOU

**