Pakistan’s cotton production has witnessed a 75% increase in the current season, reaching an impressive 8.35 million bales. This upturn has significantly bolstered the country’s largest export earner, the textile industry, and heightened its impact on overall economic activities.
Favourable weather conditions and the government’s announcement of a higher commodity support price at Rs8,500 per 40kg for the ongoing season have played pivotal roles in this unprecedented growth.
According to the Pakistan Cotton Ginner’s Association, the production, as reported on Saturday, stands at 4.76 million bales in the same period (Jul-Jan) of fiscal year 2022-23.
Breaking down the latest production data, the major boost in commodity output is attributed to Sindh, where harvesting increased by 120% to 4.11 million bales in the current season compared to the previous one. The rest of the production, totalling 4.24 million bales, came from Punjab, marking a 47% rise in the first seven months of the season compared to the same period last year. The PCGA estimates the full-season output to be in the range of 8-9 million bales this year, while Naseem Usman, Chairman of Karachi Cotton Brokers Forum, projects the total commodity production to reach 8.45 million bales by the end of the current season.
Read Drone tech boosts cotton output
The government’s announcement of a minimum purchasing price of Rs8,500 per 40kg has led farmers to cultivate the commodity over a larger area of agricultural land, according to industry officials.
Ahsanul Haq, Chairman of Pakistan Cotton Ginners’ Forum, noted that despite the stability in cotton prices internationally, local textile and spinning mills are facing challenges. The industry is grappling with the rising cost of production due to increased energy prices, prompting discussions of potential protests.
Textile mills are awaiting a reduction in electricity tariffs from 14 cents to 9 cents, while the government is considering another increase in gas prices under IMF instructions.
Published in The Express Tribune, February 4th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
1719905689-0/BeFunky-collage-(34)1719905689-0-270x192.webp "bianca censori and stepdaughter north west spotted at familymart in tokyo")
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ