Cotton arrivals drop 19pc till mid-September

LAHORE: The supply of seed-cotton to ginning factories dropped by 18.61 percent to 2.186 million bales till September 15, 2022 as compared to corresponding period of last year, dealers said.

Owing to relatively small crop size, cotton prices are hovering around record levels in the country. Currently, they were recorded between Rs22,000 to 23,000 per maund. According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) issued on Sunday, cotton arrivals in Punjab province trended upward.

As per figures, seed-cotton dispatches were recorded at 1.076 million bales, showing a surplus of 12.16 percent as compared to the same period last year. However, ravaged by floods, Sindh province recorded 1.109 million bales during the period under review, registering a shortfall of 35.72 percent as compared to September last year when arrivals hit 17,26,612 bales.

Out of the processed stocks, textile mills bought 17,61,173 bales, while exporters purchased 30,80 bales. Commenting on the situation, Ahsan-ul-Haq, Chairman Cotton Ginners Forum, said a major portion of cotton sown in Sindh had been damaged due to record flooding. He added that draining of floodwater in Sindh might still take over a month.

As a result of liberalised cotton market, import and export of the silver fibre continues. Hence, besides importing huge quantities of cotton to bridge the production shortfall, Pakistan has also commenced the export of raw cotton.

More than 3,000 cotton bales were exported to Bangladesh, Vietnam, and Indonesia. Moreover, exporters have signed agreements of up to 20,000 cotton bales till now. However, due to smaller crop size, exporters are facing problems in honoring export orders. Besides, the quality of cotton has also been partly affected due to the recent floods and rainfall.

The floods have hit not only the current crops, including cotton, but are also seen hurting future supplies, such as those of wheat, if the water standing in the fields is not drained sooner.

The massive damage to the cotton crop, due for harvest next month could also have serious knock-on-effects. According to Pakistan Central Cotton Committee estimates, around 45 percent of the total sown cotton has been destroyed by the extreme monsoons and subsequent flooding.

Agriculturists warned the crop damages were threatening the country’s food security. Cottonseed oil makes up 70 percent of the vegetable oil. The leftover cottonseed cake is used to feed cattle. Given the scale of the damages, the cotton crop could slash fodder production by 35 percent, adding to the concerns of woes of livestock farmers that have already lost over 750,000 animals to drowning and disease.