KARACHI, July 16: Private sector has registered a significant drop in export of lint cotton during the last fiscal to $2.458 million (0.206 million bales) against $139.118 million (0.794 million bales) the previous year, according to official figures released by the Federal Bureau of Statistics.

“Terrorist attack on WTC and Afghan war slowed down the exports and foreign buyers were not inclined to open LCs until the fear of Indo-Pak war is allayed,” one exporter said.

Export sales, however, got impetus from February when the Afghan war ended as the monthly figure rose from the previous average of 5,000 bales (lowest being 1,994 in November, 2001) to 27,324 bales in February, 2002, although threat of war with India was there.

After producing a bumper crop of 10.6 million bales and a sizeable carryover stocks the country was in a position to export around 0.5 million bales. However, low world cotton prices coupled with Sept 11 terrorist attack dampened the situation.

Up to July 15, 2002, a total of 0.247 million bales have been registered by private sector exporters with EPB’s export registration cell.

On the other hand there is a quantum jump in import of raw cotton during current season (2001-2002). In total 1.05 million bales have been imported between Sept 1, 2001, to May 5, 2002.

Figures given by collectorate of customs, Karachi, 0.975 million bales were imported through Karachi Port. Similarly, the figures given by collectorate of customs Port Qasim a total 73,485 bales were imported through PQA.

With huge world carryover stocks of around 43 million bales the raw cotton prices are expected to stay depressed during coming season. The highest stocks of around 9 million bales are held by China followed by US at 6 million bales.

As a result of higher carryover stocks, New York cotton market lately started to lose ground and after touching as high as US cent 47 per pound has now come down to cent 43.49 for October contract.

However, there are conflicting figures about the country’s carryover stocks. APTMA claims that the figure is around 0.865 million bales but Textile Commissioner Organization office places it much higher.

APTMA sources suggest that the industry would need higher quantity of cotton next season as large textile groups have not only undertaken extensive BMR programme but expanded spindlage capacity as well.