On an average, domestic consumption of cotton by the spinning industry is at around 10.55 million bales.
During last cotton season, the country produced around 10.480m bales and imported about 1.2m bales to meet the demand.
The total available cotton last year for the spinning industry was around 10.60m bales out of which a small quantity, around 0.7m bales, was exported.
The size of crop this season up till now stands short by 22.87 per cent or 1.916m less bales.
Analyst Naseem Usman estimates the current crop size would not be more than 10.150m to10.200m bales compared to last season’s production.
“The country had to import 1.2m bales last year. This year’s imports should be around 4m bales.
However, the figure might be about half of that as the textile industry is under stress,” he added.
He further projected that the country will have to dish out $660m for imports to meet the short fall.
The average world cotton price currently is between 65 to 66 cents per lb (including freight). The spinning industry has already booked around 1.2m bales (500 lb per bale) and some consignments have already crossed the Wagha border.
All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud claimed that around one million spindles have shut down owing to the crisis created by huge electricity bills and high cost of inputs.
Many units are operating on one or two shifts instead of full strength of three shifts, he added.
“Had the government announced the textile package timely, this crises could have been averted where now the country has to foot a huge cotton import bill and burden foreign exchange reserves,” he said.
“There was no need to issue $500m Eurobond at a high interest rate in the world market as this amount could have been easily earned from increasing exports,” said Patron-in-chief Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmed.
The current phutti (seed cotton) flow from cotton fields into ginneries is quite dismal as already cotton production is short by 22.87pc or 1.916m bales.
Normally during second picking, the flow of phutti is at its peak compared to the slow arrival at the start of the season and during third and last picking.
There is a dire need to improve per acre yield of cotton so that growers could cover their ever rising cost of input, the PBEA leader said.
“India has multiplied its cotton production from 10.46m bales in 1992 to around 35 to 40m bales by using certified BT cotton seed,” said Shabir Ahmed.
Sep 28, 2016 0
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