Cotton production likely to fall next year

Falling prices make growers think twice before sowing.

FAISALABAD: As cotton prices plunge almost 30 per cent in a year, growers are leaning towards not sowing the crop next year.

Cotton was being sold at Rs4,600 to Rs5,000 per 40 kilogrammes against last year’s price of Rs7,000, according a survey of the Faisalabad yarn market. This has created uncertainty in the market at a time when production is estimated to be 25% to 30% more than last year.

The current price will result in cotton production declining in 2012-13 season, said trader Ashraf Ghandi while affecting production and consumption next year. He further said that international buyers were also disappearing from the market.

He said that cotton prices this year will remain depressed in the international market, a trendsetter for local cotton prices. Presently, the global cotton and agriculture prices have come under severe pressure, Ghandi added.

Farmers are affected the most from falling prices as they will not get their desired prices, said experts. This indicates that next year cultivation of cotton would be affected, they added.

Industrialists said that this is ideal time for mills to procure surplus cotton and make more money in the months ahead. Last year, industrialists purchased cotton at Rs14,000 per 40kg during peak of buying season.

Published in The Express Tribune, December 21^st, 2011.