It is estimated that there will be a reduction of around 2.5 mn bales of cotton in Pakistan. The total production is estimated to be around 5 mn bales and around 7 mn further bales will need to be imported.
It is also being said to increase cotton production, All Pakistan Textile Mills Association (AMTMA) should develop a solid strategy and work with the concerned government agencies.
Cotton prices continued to rise in the domestic market during the past week. The price of quality cotton has further increased by Rs 1,000 to Rs1,500 per maund to the level of Rs 22,500 to Rs 23,000 per maund.
However, domestic cotton stocks are decreasing day by day. The issue of Letters of Credit is ongoing due to the higher rate of the dollar as a result of which textile mills have to buy local cotton at high prices.
Due to floods and rains this year, the cotton crop, especially in Sindh was damaged. It can be said though that the cotton production in the country is expected to be around 8 million bales in the next two to three years, which is a major concern for the country’s largest textile sector.
Naseem Usman, Chairman of Karachi Cotton Brokers Forum, has said that there was an overall stability in international cotton prices.
According to USDA’s weekly export and sales report for the year 2022-23, 1,71,200 bales were sold, which is 20 percent less than last week.
China was the largest purchaser with 1,19,800 bales with Turkey coming second with 44,00 bales and Indonesia the third with 8,800 bales.
20,200 bales were sold for the year 2023-24, with Turkey at the top with 18,000 bales and Thailand second with 2,200 bales.
Pakistan Cotton Ginners Association has released the cotton production data in the country till January 31. According to the data, during this period, the cotton production in the country was 47,63,609 bales, which is 35.81 percent less as compared to the same period last year.
Commenting on the report, Karachi Cotton Brokers Forum Chairman Naseem Usman said that the total cotton production in the country this year will be less than 5 mn bales.
At present, import agreements for about 5.5 mn bales have been made.
