Iran’s textile industry facing severe liquidity shortage

Iran Materials 22 December 2013 15:55 (UTC +04:00)

Baku, Azerbaijan, Dec.22

By Fatih Karimov - Trend:

Iranian textile industry is facing with severe shortage of liquidity, ISNA quoted secretary of the association of the Iranian textile industry Alireza Haeri as saying on December 22.

Each textile unit should boost its liquidity 13 folds in order to be able to continue operation, he said.

The national textile industry has been grappling with liquidity deficit after the international sanctions hit the country's banking system, he added.

Iran forecasts harvesting some 200,000 tons of unrefined cotton in the current calendar year, which ends on March 20, 2014, ISNA quoted Hassan Hosseinpour, an official at Iran's Ministry of Agriculture, as saying on November 30.

About 100,000 hectares area of lands across the country is under cultivation of cotton, he added.

It is expected that 65,000 tons of refined cotton will be produced this year, he further said.

He added that the national textile industry is suffering from the shortage of refined cotton.

The country needs 120,000 tons of cotton per year, but just 50 percent of the figure is met domestically, he said.

In October 2012, Iranian industry ministry official Mehdi Eslampanah said that regional countries as well as the South America are the main targets for Iranian textile products.

More than 9,770 industrial units are working in different fields in this regard including textile, clothing, leather and shoes, according to reports.

Carpet, shoes and materials of leather are among the textile products' export to other countries.