Cotton fields damaged in Punjab

Flash floods have submerged cotton fields and may lead to a drop in production by one to three million bales.

KARACHI:

Heavy floods in Punjab have submerged cotton fields, threatening the commodity’s production which may drop by one to three million bales.

“Cotton crop from Mianwali to Alipur has been damaged by torrential rains and floods,” said cotton analyst Ayub Usman from Faisalabad. Rains and floods have affected cotton fields in Mianwali, Piplan Layyah, Rajanpur, Mithankot and Rahimyar Khan, he said.

Usman said the government was earlier expecting production of 14 million bales from cultivation over 3.2 million hectares, but fresh estimates showed the output may drop by one to three million bales because of rains and floods.

About a month ago, it was predicted that the country will harvest a bumper crop of over 15 million bales due mainly to sowing on more than targeted area and beneficial rains.

“Not only output will drop, the quality of the produce will also get affected,” he said. Disruption in supplies has also pushed up prices to Rs6,700 per maund (37.324 kg).

About two weeks ago, prices had fallen to Rs5,300 per maund because of better crop in Punjab and its early supply to ginning factories.

“Rains have disrupted supplies to ginning factories and some have stopped operations,” said cotton broker Younus Khan.

However, he did not agree with estimates of a decline in cotton output. He said the government is a credible authority to announce production figures while others look after their own interest only.

“Ginners will talk about crop losses to take prices up while textile mills will deny any damage to keep prices from rising,” he said.

Last season, the government had set a cotton production target of 13.36 million bales, but actual production achieved was 12.6 million bales. The country’s consumption is estimated at 16 million bales a year.

On Wednesday, 2,600 bales of cotton were sold at prices ranging from Rs6,500 to Rs6,700 per maund. The Karachi Cotton Association set the official spot rate at Rs6,300 per maund compared to Rs6,200 on Monday, an increase of Rs100. On Tuesday, the market had remained closed due to violence in Karachi in the aftermath of the killing of a provincial assembly legislator.

Published in The Express Tribune, August 5^th, 2010.