Pakistan cotton production shows rise but prices on downward move

YarnsandFibers News Bureau 2014-05-04 10:00:00 – Lahore

Pakistan ginners by end April 2104 were supplied around 4,76,109 of additional cotton bales, a rise of 3.69 percent over the last year from 1,29,15,585 to 1,33,91,694 cotton bales, according to fortnightly report of the Pakistan Cotton Ginners Association (PCGA).

Of the total 1,33,91,694 cotton bales received by ginners, nearly 1,25,84,496 cotton bales were sold to textile units and exporters bought 3,99,382 bales. A modest cotton trading was seen in the market as exporters showed interest in buying to meet their needs.

An overall 1,29,83,878 cotton bales trading took place leaving behind unsold stock of 4,07, 816 cotton bales, which is more than last year when it reached to 3,99,919 bales. The PCGA is closely monitoring the production target of Pakistan Central Cotton Committee.

According to PCGA, out of 1,200 ginning factories only 12 (11 in Punjab and 1 in Sindh) are currently operational in two provinces. Punjab contributed 1.29 percent more than last year from 95,08418 to 96,31,362 bales this year, while Sindh made a significant contribution, a 10.37 percent more than last year from 34,07,167 to 37,60,332 bales and Balochistan 63,048 bales.

District wise cotton arrival in Punjab: Multan 4,95,893 bales, 12.93 percent more than last year, Lodhran 3,86,886 bales showing rise by 37.26 percent, Khanewal 9,36,563 bales increase by 2.95 percent, Muzaffargarh 4,13,961 bales registering a decrease of 6.65 percent, Dera Ghazi Khan 3,94,129 bales showed an increase of 12.51 %, Rajanpur 4,11,578 bales showing an increase of 2.07 %. Layyah 2,78,304 bales, showing 8.78 % more than last year, Vehari 8,76,555 bales 8.78 % decrease , Sahiwal 5,34,340 bales decreased by 3.73 %, Pakpattan 1,73,701 bales showing 33 % less than preceding year, Okara 45,592 showing a decrease of 21.42 %, Kasur 28,386 bales, Toba Tek Singh, 2,34, 968 bales, Faisalabad 64,188, Jhang 1,18,360, Mianwali 3,10,413 bales, Bhakkar 1,76,231 showing a decrease of 6.22 percent, Sargodha 38,514, Rahimyar Khan ,11,84,464, Bahawalpur 11,09,963 and Bahawalnagar 14,18,272 bales.

District wise cotton arrival in Sindh, Hyderabad 2,99,110 bales, an increase of 18.44 %, Mirpurkhas 3,62,049 bales, drop by 10.31%. Sanghar 14,04,538, Nawabshah 2,92,988, Naushahro Feroze 2,50,303, Khairpur 2,40,387, Ghotki 2,12,279, Sukkur 3,59,126, Dadu 35,500, Jamshoro 1,87,279 and Badin 53,525 bales and Balochistan 63,048 bales.

Ginners were expecting better prices of cotton to meet the demand of European markets after having got the status of GSP-plus but prices continued to show a downward trend which is beyond their expectations. The PCGA hold the policy-makers responsible for this as they allowed importing cotton and yarn from India.

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