Textile mills see 10% hike in net income

The country’s textile mills have projected at least a 10-percent increase in net income this year following an upsurge in the availability of locally-produced cotton lint.

An official of the Textile Mills Association said the abundance of cotton lint in the local market could reduce the importation of the product from such countries as the United States, Pakistan and Australia, thereby "lowering our production cost.

"We will make more profit since the decrease in importations of this product can save us millions of dollars," the source said.

The source, asking not to be named, told The STAR that the agriculture department has prioritized the enhancement of alternative sources of cotton lint in the country to "help the local textile industry."

Herminigildo Sayco, head of the Textile Mills Association, said the textile industry has been the biggest end-user of cotton lint and as such, it will be the "first to benefit from the increase in the availability of locally-produced cotton lint in the country."

According to Sayco, the country imported 64,000 tons of cotton lint this year, down from the highest recorded volume of 70,000 in the late ’90s when the commodity cost P55 per kilo.

The abundance of locally-produced lint and the high cost of imports have been the reasons why the import volume declined significantly," Sayco said, adding that the further increase in the availability of cotton lint could still lower the importation costs.

Eugenio Orpia Jr., head of the Cotton Development Administration (CODA), said a new cotton variety has been "making waves in the local market increasing cotton production."

Orpia said CODA would continue to promote its own hybridization program to further avoid the "costly importation of cottonseed."