A plunge of around 26 per cent in seed cotton arrivals has sent shockwaves throughout Pakistan, from growers to the textile and clothing sectors. The crop has suffered a major setback because of heavy rain and floods both in Sindh and Punjab.
Output in Punjab, which produces around 80 per cent of the commodity, suffered a decline of 32.7 per cent. Cotton production in the Sindh province witnessed a shortfall of 19 per cent. The country’s cotton production since the start of this season to September 30, 2015 stood at 3.073 million bales compared to 4.135 million bales during the same period of last season. This means the country’s output was down by 1.061 million during the period under review.
Strong demand for cotton amid short supply is pushing prices higher with each passing day. By contrast, the dynamics of the world cotton market are quite the opposite, where prices are under pressure amid surplus supply. The flow of seed cotton from cotton fields to ginneries during the September 15 to 30, 2015 remained extremely sluggish. The textile industry procured less cotton this season compared to the last season. The unsold stocks of cotton lying with ginners, however, remained close to that of last season.
The number of ginning factories operational in the cou¬ntry is 753 at present — 507 in Punjab and 246 in Sindh.
