Cotton sowing lags behind target: report

HAMID WALEED

LAHORE: The cotton sowing target in the country is lagging behind by eight percent, said the cotton review report by the Directorate of Marketing & Economic Research of Pakistan Central Cotton Committee under the aegis of Minister of Textile Industry.

According to the review report, the cotton sowing has almost been completed both in Sindh and Punjab. With an exceptional delay in monsoon rains, the cotton crop in Punjab has come under cotton leaf curl virus (CLCV) which has increased by 7 percent in the last one week of July 2012. It was reported to around 11.3 percent till the end of July 2012, which now has increased to 18.1 percent. The major areas under attack are districts of Khanewal, Pak Pattan, Bahawalpur, Rahim Yar Khan, Layyah and Muzaffargarh.

Simultaneously, said the report, severe shortage of irrigation water has triggered pest like jassid and thirps in the southern parts of Sindh. The severe affected areas are Jhuddo, Noukot, Tandojan Muhammad, Digri, Mirwa ghorchani, Kot Ghulam Muhammad, Jhilori, and Mirpur Khas.

Seed cotton arrivals from crop 2012-13 have started arriving frequently in ginning factories. As the frequency or arrivals is increasing the pressure on prices is also on the rise. The prevailing prices are favourable for the domestic textile industry while exporters have adopted wait and see policy.

According to the review report, prices of the raw cotton in the first week of July 2012 averaged at Rs65691 per 40 Kgs, which on the following weeks witnessed sluggish trend and averaged at Rs6029 in the last week. This was due to acceleration in phutti arrivals and the panic selling by the ginners. Another factor behind the slide in rates is steep fall in the New York cotton future, it added.

Similarly, increasing tendency prevailed in the different counts of cotton yarn during July 2012. Prices of 21’s and 30’s count posted gains to Rs1188 and Rs1361 per bundle of 4.54 Kgs, respectively as compared to Rs1130 and Rs1324 per bundle in June 2012 and Rs1172 and Rs Rs1331 per bundle respectively in July 2011.

A declining tendency has also been observed on raw cotton exports front with a mixed trend in its related products during June 2012. The exports of raw cotton during the month of June 2012 reduced to 2574 metric tons as compared to 154198 metric tons in May 2012 and 5,249 metric tons recorded in June 2011. It indicates the decline of 83.4 percent over May 2012 and 51.0% over June 2011. Collective exports of textile group commodities in June 2012 slide down to Rs101916 million as compared to Rs104071 million.

The imports of raw cotton during June 2012 increased to 36279 metric tons compared to 17688 metric tons in May 2012 and 13249 metric tons registered in June 2011, indicating a rise of 105.0% over May 2012 and 173.8 percent over June 2011.