KARACHI, Dec 5: Higher arrival of phutti from the Punjab fields to the ginneries is raising hopes that the country may achieve the estimated cotton production target of over 12.5 million bales during the current 2006-07 season.
Though cotton production in Sindh up to December 1, 2006, remained less than the corresponding period last year but higher arrival of phutti in Punjab managed to offset the negative impact on overall production, which was 2.25 per cent higher than the same period last year.
According to the figures released by the Pakistan Cotton Ginners’ Association (PCGA) phutti arrivals from both the cotton producing provinces of the country stood at 9.978 million bales as against 8.781 million bales during the corresponding period last year. This showed a nominal increase of 2.25 per cent.
However, with higher consumption on expanded operating spindles the country would still be requiring around two million bales more even after harvesting 12.5 million bales during the current cotton season. This was reflected in recent surge in raw cotton prices over Rs2,600 in the domestic market.
The sustained buying spree by millers is a strong indicator that the crop would remain short of demand and prices are likely to move higher in coming days and cotton quality with the time may also deteriorate owing to the widespread rains in the country.
The fortnightly arrivals also remained higher owing to better supply of phutti in Punjab and around 0.191 million more bales were produced over the corresponding period of last year.
Arrival of phutti during November 15 to December 1, 2006, stood at 2.170 million bales compared to 1.979 million bales in the corresponding period last year.
Cotton production in Punjab during the period under review rose to 7.122 million bales or 4.83 per cent as against 6.784 million bales produced in the same period last year. However, Sindh produced less cotton at 1.866 million bales or 6.51 per cent compared to 1.996 million bales produced in the corresponding period last year.
It is interesting to note that the mills off-take of cotton is higher at 6.498 million bales compared to corresponding period last year when spinners lifted around 6.034 million bales.
The unsold stocks lying with the ginners were also depleting owing to higher buying from mills. In total 2.412 million bales are lying with ginners as against 2.693 million recorded in the same period last year.
Presently, 1063 ginning units are operating in the country, out of these 861 units are in Punjab and 202 in Sindh. However, at the moment second picking is taking place in Punjab and third in Sindh.