KARACHI, April 5: The country may not achieve the cotton target of 12.5 million bales fixed by the government for the current season (2006-07). The latest figures placed the production at 12.384 million bales which was only 0.10 per cent higher than last year’s production of 12.371 million bales.

The short crop pushed cotton prices in the local market to a record level at Rs2,850 per maund as spinners went into panic-buying to cover the short and long-term requirements.

The official figures released by the Pakistan Cotton Ginners’ Association (PCGA) disclosed that there had been a big shortfall in phutti arrival in Sindh up to April 1, 2007, which stood at 2.318 million bales or 8.91 per cent short as against 2.545 million bales produced in the same period last year.

Nevertheless, higher production in Punjab partly managed to off-set the shortfall where 10.066 million bales or 2.44 per cent more cotton was harvested during period under review.

Last year cotton production in the Punjab stood at 9.826 million bales.

The cotton production in Sindh, however, recorded a shortfall of 8.91 per cent at 2.318 million bales compared to 2.545 million bales produced in the corresponding period last year.

The dwindling arrival of phutti was conspicuous in the last months flow when 144,601 bales reached ginneries in both the provinces.

However, reports of shortfall created panic in the domestic market where raw cotton prices scrambled to record level at Rs2850 per maund.

Despite the fact that spinners have been in the forefront of buying-spree, some exporters are also reported to have booked substantial quantity of cotton to meet their export contracts.

Observers feel that the short crop has further widened the gap between demand and supply and there is a greater possibility that the industry will have to import larger volume of cotton to meet their expanded capacities in spinning and weaving sectors.

Some estimates put the shortfall at more than three million bales to meet the industry’s cotton demand for the current season.

Already the textile industry has lifted record quantity of cotton at 11.595 million bales, compared to 11.113 million bales purchased in the corresponding period last year.

Exporters have also purchased higher volume of cotton this season at 116,557 bales compared to 74,400 bales lifted by them in the same period last year.

Similarly, there are lesser unsold stocks lying with the ginners at 672,670 bales compared to 1.184 million bales held by them in the corresponding period last year.

This also indicates that due to short crop the unsold stocks with ginners are of much smaller quantity.

Presently, only 62 ginning units are operating in the Punjab as against 70 in the same period last year and in Sindh only four ginning factories are operating compared to three last year.