Cotton market recovered for second consecutive day on Thursday as spinners chased lint amid fears of low-quality and crop shortages coupled with a decline in traded volume following a slow-off take of yarn and fabric in the domestic market.
Nevertheless, decline in phutti (cotton seed) arrivals pushed cotton prices upwards, which a broker argued is a cause for concern considering the expected arrivals during the current — peak — season are much higher than the current arrivals.It was interesting to note that most of the deals in Punjab variety cotton were carried out at higher price at Rs8,000 per maund.The rising trend was also witnessed in Sindh quality cotton but was relatively marginal. The world commodity markets including cotton have been under pressure.The worsening tariff war between US, China and Turkey continue to have its toll on the domestic cotton market.Pakistan Cotton Ginners Association (PCGA) has issued the figures of cotton arrival upto Oct 15th,2018. Seed cotton (Phutti) equivalent to over 60,44,194 bales of cotton have reached ginneries across Pakistan as of October Ist,2017,showing an increase of 1 per cent compared to corresponding period last year when ginneries received 59,84,486 bales. According to the 3rd fortnightly report of Pakistan Cotton Ginners Association (PCGA) issued with the approval of three member committee comprising Mehr Muhammad Ashraf (Convener) Malik Talat Suhail and Salman Maqbool here today,Chairman of PCGA Mian Mehmood Ahmed ,Briefing the media men about cotton production they said that 20,23,549 bales of cotton received during this fortnight. Out of the total arrivals, 6.044 million bales of cotton have been converted into bales so far. Ginneries in Punjab recorded arrival of 20,23,549 bales against the last year arrival of 19,49,239 bales showing an increase of merely 1 per cent. Sindh ginneries recorded arrival of 29,20,498 bales while last year Sindh received 29,51,708 bales 1.06 % less. Ginneries in Sindh recorded a decrease of 1.06 % as compared to corresponding period last year.Textile mills have bought 43,31,839 bales while exporters bought 75,797 bales. The total bales sold out so far were calculated at 44,07,636 bales. While 16,36,558 bales are lying unsold .Multan received 1,13,847 bales 5.81 % decrease than last year, Lodhran 55,354 bales 121.88 % decrease, Khanewal 3,56,750 bales a decrease of 6.34%, Muzaffargarh 1,80,920 bales an increase of 37.31 %, Dera Ghazi Khan 2,10,185 an increase of 25.76 %, Rajanpur 2,75,455 bales, 32.03 % increase,Layyah 87,181 bales 31.64.% decrease, Vehari 3,17,866 bales 7.37 % decrease, Sahiwal 1,44,105 bales 11.29 % less than last year, Pakpattan 15,900 bales 45.30 % decrease, Okara 9,700 bales- 25.10 % short, Toba Tek Singh 91,353 bales, 11.68 % decrease , Faisalabad 25,250 bales 8.14 % less than last year, Jhang 10,590 showing a decrease of 32.85 %, Mianwali 30,874 a decrease of 45.45 % , Bhakkar 18,095(54.24 % less) Sargodha (Figures not received), Rahim yar Khan 3,74,494 bales (46.27% increase), Bahawalpur 3,90,187 a decrease of 1.86 %,and Bahawalnagar 4,15,590 an increase of 7.85 %. In Sindh province: Hyderabad 1,91,803 bales 12.42 % less than last year,Mirpur Khas (Thar) 1,16,084 bales 42.57 % less, Sangarh ,11,59,170 bales 8.90 % decrease, Nawabshah 3,18,400 bales (13.70 % increase), Naushero Feroze 2,26336 bales (5.22 % increase), Khairpur 2,41,864 (30.15 % increase) Ghotki 1,28,355 (66.56 % increase),Sukkur 3,52,371(27.52 % increase), Dadu 14,818 (107 % increase), Jamshoro 87,782 bales (25.29 % less) ,Badeen 2979 bales 81.75 % less) and Baluchistan 80,536 bales (a decrease of 2.76 %). Total 909 ginning factories are operational in the country.Of them 622 in Punjab and 287 in Sindh. Total 16,36,558 bales are lying in unsold stock.They told that the data was collected with joint cooperation of PCGA, APTMA and KCA. Anticipating a shortfall of about 25 per cent, the first official estimate has predicted cotton output at 10.847 million bales against the target of 14.37 million bales for 2018-19 season as water shortage and cotton leaf curl virus (CLCV) hold back overall gains in the area under cultivation.Cotton production in Punjab is estimated to be 8.077 million bales against the target of 10 million bales. While Sindh’s output is feared to be badly affected mainly due to water shortage and may be just 2.60 million bales against the target of 4.20 million bales. The crop cultivation in Sindh province witnessed decrease of 31 per cent as compared to the corresponding period of last year due to historically low water availability.In Punjab, there are attacks of whitefly, Jassid, Thrips, Mealy Bug and CLCV in certain districts. Relatively dry weather in cotton growing areas have made conducive environment for infestation of whitefly, which is a vector of cotton leaf curl virus. According to latest report, the incidences of CLCV were reported at 29.28 per cent this year against 21 per cent recorded last year. The assault of whitefly was also on the rise if compared with the trend of last year.Cotton crop in the Sindh remained under severe water shortage due less river flows and below-normal rainfalls in the crop growing areas of the province. Hot weather at early stage of the crop is likely to have a negative impact on production. At the national level, overall increased sown area in the current season and better cotton prices have failed to incentivise farmers to go for extra care of their crop through greater application of fertiliser and pesticides.Cotton crop for 2018-19 season has been cultivated over 2.7 million hectares in the country against the target of 2.95 million hectares, showing an increase of about 2.0 percent over the cultivation of previous year. But, water shortage, pest attack and unfavourable weather have hit the crop hard.An official of Punjab Agriculture Department conceded that cotton production in the province is expected to be around 7.8 to 8.2 million bales this year against the target of 10 million bales. He foresaw per acre yield at around 21 bales. He was of the view that whitefly and CLCV attacks had emerged a biggest threat to standing plants and were seen at greater area than last year, damaging crop in various districts. The attack of Mealy bug is, however, in patches and, thus, not a big threat despite greater incidence if compared with last year.Water deficiency at plantation and early and stage remained a problem in Punjab province too, he claimed. Rain in the next few weeks especially in September could create problems and lead to greater attack of pests. He asserted that actual situation about crop size would be determined in November.The low volume of cotton this year has forced textile mills to go for larger quantities of imports. According to a United States Department of Agriculture report, the US exports to Pakistan saw the largest year-over-year increase. The country’s yarn production continues to grow and is expected to expand in 2018-19.Pakistan’s cotton imports during 2018/19 are forecast at 2.7 million 480 lb. bales. Imports of the US cotton spiked 115 per cent through June of calendar year 2018 for Pakistan, reaching a record $500 million, in large part due to Pakistan restricting imports from India last year.
