Pakistan holding half a million of unsold cotton stock from current season

Pakistan ginners are encumbered with nearly half a million unsold bales from the current season. They were anticipating better prices to meet the demand of European Market after have got the status of GSP-Plus but prices have fallen down beyond their expectations. The Pakistan Cotton Ginners Association (PCGA) hold responsible the policy makers for allowing import cotton and yarn from India.

Pakistan Cotton Ginners Association (PCGA) has urged the Government that they should ask the Trading Corporation of Pakistan (TCP) to purchase half a million bales lying as unsold stock in the ginneries states. As per their reports around 1,33,90,788 cotton bales were sourced to the country’s ginners by April 15 ,2014, which shows an increase of 3.86 percent compared to previous year when ginneries received 1,28,88,028 bales.

Around 1, 24, 36,218 cotton bales were sold to the textile units and exporters bought 3, 93,754 bales. Thus, overall 1, 28, 29,972 bales were traded so far.

Punjab contributed 96,25,703 , 1.49 percent more than last year while, Sindh put in 37, 60,132 bales, 10.47 percent more than last year and Balochistan 63,048 bales.

After the total trading of 1, 28, 29,972 bales, there are 5, 60,816 bales available with ginners as unsold stock. Modest cotton trading was witnessed in market as exporters showed interest in buying to meet their need.

However, cotton prices continued their downward drive this week conceding another Rs 100 to 150 per maund, condition on the cotton market is bearish and off take of lint is absolutely low.

District wise cotton arrival in Punjab: Multan 4,95,893 bales, 12.93 pc more than last year; Lodhran 3,86,886 bales, 37.26pc increase; Khanewal 9,36,563, showing an increase of 2.95pc; Muzaffargarh 4,13,961 bales 6.65pc decrease; Dera Ghazi Khan 3,94,129 bales, an increase of 12.51pc.

Report further states contributions as follows: Rajanpur 4,11,578 bales, an increase of 2.07pc;.Layyah 2,78,304 bales, 8.78pc rise; Vehari 8,76,555 bales, 8.78pc decrease; Sahiwal 5,34,340 bales, decreased by 3.73pc; Pakpattan 1,73,701, showing 33pc fall; Okara 45,592 bales, showing a decrease of 21.42pc; Kasur 28,386 bales, Toba Tek Singh, 2,34, 968 bales ,Faisalabad 64,188 bales

The other stations :Jhang 1,18,360, Mianwali3,10,413 bales, Bhakkar 1,76,231, a decrease of 6.22pc; 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, showing an increase of 18.44pc; Mirpur Khas 3,62,049, decrease by 10.31pc;Sangarh 14,04,538, Nawabshah 2,92,988, Naushero Feroze 2,50,303, Khairpur 2,40,387, Ghotki 2,12,279, Sukkur, 3,59,126, Dadu 35,500, Jamshoro 1,87,279. Similarly the other stations: Badin 53,525 and Balochistan 63,048 bales.

During the fortnight of March 16 to April Ginnneries received 16,208 bales, unsold stock is 5,60,816 which is less than last year’s .

One of the major issues currently faced is that out of 1200 ginning factories, 14 ginning factories are operating that too in Punjab province only Sindh accounts zero.