RAHIM YAR KHAN - Reports of lower production of cotton crop in Pakistan and India as compared to earlier estimates, rising price of dollar and Chinese intention of buying cotton yarn from Pakistan have positively impacted local cotton prices that are now at the rising ebb.
Sources have informed that during last two days, the price of cotton has jumped to Rs6,200 per 40kg with an addition of Rs200 whereas price of seed cotton (phutti) has jumped to Rs3,000 per 40kg with addition of Rs300. It is expected that the upward trend in cotton price will continue for the next few days.
Former Pakistan Cotton Ginners Association (PCGA) executive member Ihsanul Haq said that previously Pakistan’s domestic cotton crop for current year was estimated to reach 15 million bales but due to adverse climate and reduction in sown area the production estimate had been revised between 13.5 to 14 million bales. Similarly, in India total domestic arrivals of seed cotton (phutti) up to November 4, 2012 has been reported as 1.3 million bales that is 30% less than arrivals for corresponding period of last year. According to the report issued by the Cotton Corporation of India, the major shortfall (up to 40%) in cotton production has been seen in Gujarat, Maharashtra ad Madhya Pradesh states whereas cotton production in Punjab, Haryana and Rajasthan states has shown shortfall of 12%, he added.
He further said that due to unexpected fall in domestic cotton production of India, the government may consider revision of export policy and may ban cotton export from India that will further push forward cotton prices in Pakistan and in world market. He said that during last week cotton prices in Pakistan has risen by Rs500 per 40kg and corresponding rise in price of seed cotton (phutti) will benefit the cotton farmers. However, he informed that, due to the trend of rising cotton prices in Pakistan the Textile Mills owners were in hurry to conclude cotton import agreements with Brazil, Greece, West Africa and India.