Pakistan likely to achieve 13 million bales cotton production in coming season
Pakistan likely to achieve approximately 13 million bales of cotton production in the coming season that will help recover its cotton losses from last year. This was informed at the fourth meeting of Federal Textile Board (FTB) chaired by Federal Minister for Commerce Khurram Dastgir Khan held on August 29, 2016
The stakeholders were informed by Pakistan Cotton Ginners Association (PCGA) and Cotton Commissioner that through close coordination between federal government and government of Punjab the Pink bollworm, which had damaged the cotton crop last year, had largely been controlled. Furthermore, a large number of farmers have been trained to drain their fields properly so that their crops can be safeguarded.
All the stakeholders across the value chain beginning from ginners, weavers, spinners, bed sheet manufacturers and garment manufacturers made detailed presentations on current state of exports in their sectors and gave suggestions for improvements in the policies.
The minister informed those present that under Prime Minister Nawaz leadership the PML (N) government had already facilitated the exporters through zero-rating, unprecedented cuts in exports financing rates, uninterrupted supply of electricity and gas and repeated reduction in electricity prices and assured the stakeholders of full government support.
The Minister expressed confidence that in spite of challenging international environment Pakistani exporters have the ability to rise to the challenge and grow Pakistani exports.
The textile association welcomed the efforts and support of government & Ministry and thanked the support extended by the Minister for Commerce/Chairman Federal Textile Board.
Another source supposes that imports of cotton will be necessary
With Pakistan’s cotton sowing remaining 25 percent lower this year compared to the last year, its cotton production likely to face a shortage of around 2.5 million cotton bales during current year, said Girdhari Lal of Pakistan Cotton Ginners Association.
Girdhari Lal further said that with country’s cotton demand hovers around 14 million bales while the production estimated at a little above 11 million bales. According to their estimates, around 2.5 million bales would need to be imported.
As many as 125 ginning factories out of total 275 have started operating in Sindh while just 60 factories out of 900 are operational in the Punjab as cotton seed (phutti) arrival has not started as yet. Taqi Abbas a cotton dealer said that proper supply of cotton seed (phutti) would kick off by mid-September, which would increase the supply.
The cotton prices are unjustifiably high at the moment because of supply shortage. Once the ginning mills gain momentum, prices of the commodity would ease. There is a severe demand and supply situation at the moment because of the rains in Sindh and the Punjab. The crop in the Punjab is late in Sindh, rains have impacted the quality, which has put ginners in a fix, Abbas added.
Meanwhile, textile manufacturers anticipate serious affects on export activities due to sharp reduction in cotton output.
In 2015/16, growers reduced pesticide applications which resulted in a 30 percent decrease in yield due to severe whitefly infestations. Yields in 2015/16 were 544 kilograms per hectare, the lowest in the past 17 years.
Yield is forecast to rebound this season as farmers exercise greater caution not to repeat last season’s attempts to lower input costs in response to low market prices.
USDA has reduced Pakistan’s 2016/17 cotton production forecast as area harvested is estimated at 2.5 million hectares, down 11 percent from last year. Yield is estimated at 694 kilograms per hectare.