Cotton arrivals improve 6.5 percent to 9.35 million bales

KARACHI: Pakistan has recorded cotton arrivals of 9.35 million bales by November 15, 2017, up 6.58 percent against 8.78 million bales during the same period of the last year.

According to fortnightly report issued by the Pakistan Cotton Ginners Association (PCGA) on Saturday, a total of 0.20 million bales were sold to exporters, which was 33.10 percent higher than 0.15 million bales last year.

Naseem Usman, chairman of the Karachi Cotton Brokers Association, said that cotton arrivals were disrupted during this fortnight because of heavy fog in the cotton growing areas of Punjab, which suspended picking and supply. Thus, the total stocks target could not be calculated at this point.

“Actual crop position would be clear after arrival of December report,” he added. Ginners sold 7.25 million bales to spinners during the period under review as compared to 6.57 million bales last year, registering an increase of 10.24 percent, the data showed.

Currently, total stocks stood at 1.89 million bales as compared to 2.04 bales during the same period last year.

Fortnightly flow (November 1-15) was recorded at 2.04 million bales, which is 11 percent higher as compared to the flows of 1.83 million bales last year.

A total of 994 ginning factories remained in operation as compared to 987 mills last year, it said.

Traders said the crop remained affected because of extreme heat and fog, which will keep the projected target of 12.6 million bales by the Cotton Crop Assessment Committee (CCAC) short by 1.6 million bales to around 11 million bales.

Market sources said if cotton arrivals remain lower than the CCAC expectations, the local mills would have to rely on imports. So far, import orders of a total of 1.6 million bales have been placed of the likely imports of 2.5 million bales.

The country has made import deals with the US, Brazil, South Africa and Central Asian countries, while import of Indian lint remains suspended after the plant protection department found technical issues last year. In the past, Pakistan had imported

Indian cotton, whose quantity varied

between 1.5 million bales to 2.8 million bales.

Meanwhile, the All Pakistan Textile Mills Association (Aptma) has demanded the government to allow Indian cotton import, which would be more feasible because of lower shipping charges.