KARACHI, Jan 6: The sudden fall in phutti arrivals into ginneries during the last fortnight (Dec 15, 2006 to Jan 1, 2007) has dashed the hopes of even achieving official production target of 12.5 million bales.
The overall cotton output dropped by 1.45 per cent at 1.082 million bales compared to 1.246 million bales produced in the corresponding period last year.
The official estimates put cotton production at 12.5 million bales but as the current crop season is nearing its maturity with third picking is almost complete, leaving little hopes that the crop size would be higher than last year’s 12.6 million bales.
Private sector believes sharp drop in phutti arrivals in Punjab has made it difficult for the country to achieve the official cotton production target. The Sindh has been lagging far behind in the cotton production from the very start of current season thus further widening the gap.
In Sindh cotton production fell by 8.89 per cent at 2.145 million bales as against 2.349 million bales during the corresponding period last year. Similarly, in Punjab where initially phutti arrivals remained fairly higher and was a major factor to cover the expected shortfall in cotton production also dwindled further.
According to official figures arrivals of phutti in Punjab during the fortnight was marginally higher by 0.46 per cent at 8.937 million bales compared to 8.893 million bales registered in the corresponding period last year. Therefore, it is being strongly felt by private sector analysts that the country would face cotton shortage during current season.
The expanded spinning capacity up to 15 million spindles would require another around three million bales and the gap would be filled with imports, the analysts said.
The phutti arrivals during the fortnight fell short by 172,428 bales at 854,267 bales as against 1,026,695 bales recorded in the same period last year. The arrivals even stood lesser than the previous fortnight (Dec 1 to Dec 15, 2006) when ginneries received 188,749 bales.
The spinning mills appear to be in a haste to replenish their stocks fearing shortage of cotton towards the close of season and this fact could be verified from higher off-take of cotton by them which stood at 8.943 million bales compared to 8.517 million bales purchased in the corresponding period last year.
The private sector exporters kept their purchase restricted at 76,650 bales slightly higher than 59,700 bales lifted by them in the same period last year.
It is also interesting to note that the unsold stocks of cotton with ginners are lesser at 2.062 million bales compared to 2.668 million bales in the corresponding period last year.
Presently 1,019 ginning units are operative out of these 856 factories are in Punjab and 163 in Sindh. However, last year 881 units were operating in Punjab and 203 units in Sindh.
