As per the report, total cotton arrival in Pakistan rose to 8.35 million bales compared to 8.258 million bales recorded on January 15, 2023, an increase of 0.092 million bales.
On a year-on-year basis, cotton arrival in surged by over 75% when compared to 4.764 million bales registered on January 31, 2022.
The YoY increase comes after flash floods in Pakistan in 2022 devastated large swathes of agricultural land in the country, especially in Sindh and Balochistan, impacting cotton crop production, which witnessed a 34% YoY decline.Cotton arrival improves 13.3% in last two weeks of Oct: PCGA chairman Ch.Waheed Arshad told
The improvement in cotton arrivals, an essential raw material for the textile sector, is a welcome development for cash-strapped Pakistan, which is exploring ways to increase dollar inflows.
The country’s crucial textile sector, responsible for a majority of Pakistan’s exports, remains engulfed in several challenges including high energy costs, persistent delays in issuance of tax refunds coupled with a shortage and high costs of working capital and supply chain finance created an industry-wide liquidity crisis.
As per PCGA data, cotton arrival reported a marginal increase from both Punjab and Sindh.
As of January 31, cotton arrival in Punjab clocked in at 4.238 million bales as compared to 4.159 million bales reported on January 15, 2024, an increase of 1.9%. On a yearly basis, cotton arrivals from Punjab jumped by 46.5%, as compared to 2.893 million bales clocked in during the same period last year.
Similarly, cotton arrival in Sindh was 4.111 million bales compared to 4.10 million bales recorded on January 15, an increase of 0.011 million bales or 0.3%. However, the YoY increase was more pronounced in Sindh, as cotton arrivals jumped by 119.8% as compared to 1.871 million bales registered in SPLY.
Pakistan’s cotton production has witnessed a 75% increase in the current season, reaching an impressive 8.35 million bales. This upturn has significantly bolstered the country’s largest export earner, the textile industry, and heightened its impact on overall economic activities.
Favourable weather conditions and the government’s announcement of a higher commodity support price at Rs8,500 per 40kg for the ongoing season have played pivotal roles in this unprecedented growth.
According to the Pakistan Cotton Ginner’s Association, the production, as reported on Saturday, stands at 4.76 million bales in the same period (Jul-Jan) of fiscal year 2022-23.
Breaking down the latest production data, the major boost in commodity output is attributed to Sindh, where harvesting increased by 120% to 4.11 million bales in the current season compared to the previous one. The rest of the production, totalling 4.24 million bales, came from Punjab, marking a 47% rise in the first seven months of the season compared to the same period last year. The PCGA estimates the full-season output to be in the range of 8-9 million bales this year, while Naseem Usman, Chairman of Karachi Cotton Brokers Forum, projects the total commodity production to reach 8.45 million bales by the end of the current season.
The government’s announcement of a minimum purchasing price of Rs8,500 per 40kg has led farmers to cultivate the commodity over a larger area of agricultural land, according to industry officials.
Chairman of Pakistan Cotton Ginners Association Ch.Waheed Arshad , noted that despite the stability in cotton prices internationally, local textile and spinning mills are facing challenges. The industry is grappling with the rising cost of production due to increased energy prices, prompting discussions of potential protests.
Textile mills are awaiting a reduction in electricity tariffs from 14 cents to 9 cents, while the government is considering another increase in gas prices under IMF instructions.
