LAHORE: Lower cotton crop production in Pakistan and India, depreciation of Pak rupee and China’s intention to buy cotton yarn from Pakistan have positively impacted local cotton prices in the last couple of days, said a leading ginner on Wednesday.
During the last two days, the price of cotton hiked to Rs6,200 per maund with an increase of Rs200, whereas price of seed cotton (phutti) increased to Rs3,000 per maund with an increase of Rs300. “The upward trend in cotton prices is likely to continue in the next few days,” said Ihsan-ul-Haq, ex-executive member of Pakistan Cotton Ginners Association (PCGA).
He added that previously Pakistan’s cotton crop for the current year was estimated at 15 million bales but due to adverse climate conditions and reduction in sown area, the estimate has been revised between 13.5 to 14 million bales.
Similarly, he maintained, the total seed cotton (phutti) arrivals up to November 4, 2012, in India was reported at 1.3
million bales, which is 30 percent less than the arrivals for the corresponding period of last year.
According to a report issued by the Cotton Corporation of India, the major shortfall (up to 40 percent) in cotton production has been seen in Gujarat, Maharashtra and Madhya Pradesh states, whereas cotton production in Punjab, Haryana and Rajasthan states witnessed a shortfall of 12 percent. Furthermore, due to the unexpected decline in India’s domestic cotton production, the government might consider revising the export policy and could also ban cotton exports from India, which would further push forward the cotton prices in Pakistan and the global market. “During the last week, cotton prices in Pakistan increased by Rs500 per maund and the corresponding increase in seed cotton
(phutti) price would benefit cotton farmers,” said Ihsan-ul-Haq. However, he informed, that due to rising cotton prices in Pakistan, the textile mill owners are in a hurry to conclude the cotton import agreements with Brazil, Greece, West Africa and India.