Pakistan likely to import more than 1.1 mn bales of cotton during fiscal of 2015-16

The Pakistani textile and spinning sector will have to import more than 1.1 million bales of various qualities of cotton in the next eight months of FY2015-16 in order to meet the shortfall and its demand for raw cotton that has gone up to around 15 million bales (of 175 kg each). This is due to the loss of one million bales of cotton in the recent floods, which destroyed standing cotton crop in Punjab and Sindh according to Karachi Cotton Association (KCA).

Pakistan will definitely miss cotton production target of over 15 million bales in the current 2015-16 cotton-sowing season by 8-10 percent after heavy rains and flooding. The country achieved revised target of 13.48 million bales for 2014-15.

The import would register a jump of 8 percent from India, United States and other prime cotton-producing countries and will have to spend $2 billion on the cotton import to meet the textile sector’s demand during fiscal of 2015-16.

Pakistani lint remains cheaper at around 10-12 cents per pound in the international market but after damage to the crop the country would also face a loss of millions of dollars by not exporting around 100,000 bales.

According to the initial estimates, most of the areas in Punjab cotton belt, including Rahim Yar Khan, Dera Ghazi Khan, Muzzafargarh and Layyah where crop has been destroyed to the tune of over 100,000 bales cultivated on over 155,000 acres of land. In Sindh cotton belt areas floods have inflicted damage to cotton crop in Badin, Tando Muhammad Khan, Hyderabad, Tharparkar, Dadu and Thatta districts. These areas are considered cultivating rich cotton grade.

Punjab produces about 70 percent of the total cotton harvest while Sindh produces around 4.5 million bales during crop season. Balochistan produces 0.59 million bales on average while Khyber Pakhtunkhwa produces 0.159 million bales.

According to cotton analyst Shakeel Ahmad, a lot of cotton was already being imported from USA because of its good quality. Currently, US lint is available around 85-90 cents per pound while Indian cotton is available for about 80-82 cents per pound. Textile sector purchases more than 11 million bales and private sector exporters purchase around 350,000 bales in a crop year on average.