KARACHI, Jan 4: The country will have to foot a huge import bill to meet the yawning cotton shortfall of up to five million bales with the demand of the spinning industry being 15 million bales.
The cotton crop is estimated to be 10 million bales and the gap of five million bales would not only put a heavy burden on reserves but also cause an increase in cotton prices in the local market.
Around 1.23 million bales have been imported by the textile industry so far and, according to cotton analysts, larger quantities are expected to reach the country’s ports in the coming months.
The severe damage caused by mealybug and leaf curl virus (LCV) in the cotton growing belt of upper Sindh and lower Punjab has its adverse impact on the crop.
The failure of the Ministry of Food, Agriculture and Livestock (Minfal) to take timely measures to save the crop has been described as the main cause of devastation.
Latest production figures for a fortnight (Dec 15 to Jan 1) indicate that phutti arrival in Punjab has declined by 23.10 per cent or 6.865 million bales, compared to 8.937 million bales produced in the corresponding period last year.
As a result of the steep fall, the overall production of cotton in the country fell by 17.76 per cent at 9.114 million bales as against 11.082 million harvested in the same period last year.
The country’s economy is under stress because one crisis after the other has been adversely affecting the investment environment and the industry is facing numerous problems, including high cost of production coupled with frequent and unscheduled power cuts and loadshedding.
The short supply and low pressure to the Punjab textile industry are also having a devastating impact, hitting export commitments.
A small surge in cotton production in Sindh by up to 4.64 per cent is not going to wash off the effect of the shortfall in Punjab which produces over 80 per cent of the entire cotton crop.
Arrival of phutti (seed cotton) in Sindh during the period under review stood at 2.248 million bales, compared to 2.145 million bales, showing a marginal increase of 4.64 per cent.
The dwindling phutti in cotton fields could be assessed for the fact that during the last fortnight (Dec 15 to Jan 1) the arrival was recorded at 0.765 million bales, compared with the previous collection.
The off-take of cotton by the spinning industry stood at 7.126 million bales, compared with 8.943 million bales purchased in the same period last year.
Exporters, however, lifted around 80,808 bales as against 76,650 bales purchased by them in the corresponding period last year.
Similarly, the unsold stocks lying with the ginneries are 1.907 million bales, compared with 2.062 million bales last year.
