Cotton production may plunge to four-decade low

KARACHI:

Pakistan’s cotton production is projected to plunge to a four-decade low to around four million bales in 2022, as output slumped 41% to a mere 3.7 million bales in the outgoing season, according to cotton ginners on Thursday.

The Pakistan Cotton Ginners Association (PCGA) reported that in contrast, around this time last year, output stood at 6.26 million bales.

Speaking to the Express Tribune, the former chairman of PCGA, Jassu Mal Leemani said, “We estimate the total cotton output to be around four million bales this year. The current production season ends this month (November).”

According to PCGA, the weight of one cotton bale stands, on an average, at 155 kilograms.

Historical data reveals that the last time Pakistan recorded less than four million bales of cotton production was back in 1983.

The heavy rainfall witnessed by the country in monsoon, followed by flash floods, have damaged a significant portion of standing crop in the fields, mostly in the province of Sindh.

“The demand for cotton from textile mills stood at around 12 million bales this year, meaning they will have to overcome a shortfall of around eight million bales through imports,” noted Leemani.

“Demand for the commodity has dropped by 20% to 12 million bales this year, as compared to 15 million bales last year. The 40-year high inflation in the West, and a fear of recession, resulted in demand for Pakistan-made textiles dropping with textile manufacturers reporting a drop in exports. The US and EU are the two largest textile markets for Pakistan,” he explained.

Before the floods, Pakistan was estimated to produce over seven million bales in the current season. Textiles remain the single largest export earning sector, earning 60% of the country’s total exports. The Pakistan Bureau of Statistics (PBS) reported that the country’s textile exports improved by 3.68% to reach $4.58 billion in the first three months (July-September) of the current fiscal year 2023, as compared to $4.42 billion in the same period last year.

According to PBS data, the import of cotton has increased by 11% to around $380 million in the first three months of the current fiscal year, as compared to $343 million in the same period last year. Import of the commodity in volumetric terms, however, dropped by 14% to 143,166 metric tonnes in the three months under review, as compared to 166,524 metric tonnes in the same period last year.

The breakdown of the latest PCGA data suggests that cotton production in the province of Sindh suffered tremendously, where output dropped by 51% to 1.64 million bales this year, as compared to 3.32 million bales this time last year.

Published in The Express Tribune, November 4^th, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.