KARACHI, Jan 19: The unusual sustained flow of phutti during the third and last picking of the current season is proving a boon for the country, which badly needs cotton to meet a wide gap between demand and supply.

For the last three consecutive fortnights, the flow of phutti somewhat remained on higher side compared to last year thereby helped to narrow down the wide gap initially recorded in the season. According to official figures flow of phutti during fortnight ending Jan 15, 2011 stood at 519,686 bales as against 309,165 bales recorded in the corresponding period last year. This means that 210,720 more bales have been harvested during Jan 1 to 15.

But the total production of cotton during the period under review still remained less at 10.760 million bales or 12.09 per cent short over the corresponding period last year when 12.230 million bales were harvested. Therefore, the total cotton production is still short by 1.479 million bales over the same period last year.

During early period of the current season the cotton production remained over 20 per cent short over last year and this situation remained till the second picking. However, on the start of third and final picking of phutti the flow improved which reduced the gap to 12.20 per cent as on Jan 15.

In the Punjab, cotton production stood at 7.139 million bales or 12.03 per cent short over the corresponding period last year when 8.116 million bales were recorded. This means that cotton production in the Punjab is still short by 976,630 bales against last year.

Similarly, in Sindh 3.620 million bales or 12.20 per cent less production had been recorded up to Jan 15, as against 4.123 million bales produced last year. There is a shortage of 503,077 bales in production over last year.

The spinning industry has purchased 9.316 million bales so far compared to 11.118 million bales lifted by them in the same period last year. Exporters purchased 446,600 bales compared to 765,899 bales last year.

The ginners are holding around 997,409 bales of unsold stocks against 1.121 million bales held by them in the same period last year. Around 945 ginning mills are still operating in the country.

The cotton shortage has already surged prices in the domestic market with the peak level touching Rs11,000 per 40 kg. However, once the government succeeds in convincing New Delhi for honouring export contracts of one million bales the prices may come down, cotton analysts said.