Cotton arrival declines 37% year-on-year

Cotton arrival in Pakistan decreased 37% year-on-year, showed the latest data released by the Pakistan Cotton Ginner's Association (PCGA) on Tuesday.

As per the report, total cotton arrival in Pakistan declined to 4.61 million bales as of January 1, 2023, compared to 7.347 million bales in the same period last year, a fall of 2.737 million bales or 37.2%.

The decline in cotton arrival is attributed to the flash floods in Pakistan, which devastated large swathes of agricultural land in the country, especially in Sindh and Balochistan.

Cotton arrival declines 41% year-on-year owing to flood losses

“For FY2023, economic growth is likely to remain below the budgeted target due to devastation created by floods. This combination of low growth, high inflation and low levels of official reserves is particularly challenging for policymakers,” the Ministry of Finance said in its latest “Monthly Economic Update & Outlook for December”.

Meanwhile, as per the PCGA data, cotton arrival reported a substantial decrease from Sindh.

As of January 1, cotton arrival in Sindh was 1.85 million bales compared to 3.509 million bales in the same period in 2021, a decrease of 1.659 million bales or 47%. On a monthly basis, cotton arrival recorded an improvement of 5% as compared to 1.765 million bales arrived on December 1.

Similarly, cotton arrival in Punjab clocked in at 2.760 million bales as compared to 3.839 million bales reported in the same period last year, a decline of 28%. However, on a monthly basis, cotton arrival recorded an increase of 10% as compared to 2.515 million bales arrived on December 1.

Industrialists have expressed concern over the ongoing slump in the textile sector.

Last month, the All Pakistan Textile Mills Association (APTMA) warned that the country’s textile exports could fall below $1 billion a month from 2023 onwards, highlighting a range of issues facing the sector that is currently operating at less than 50% capacity utilisation.

In a letter addressed to Prime Minister Shehbaz Sharif dated December 23, 2022, APTMA’s Patron-in-Chief Gohar Ejaz said the international economic situation “primarily caused by the Ukraine crisis combined with the floods in Pakistan have combined to formulate the perfect storm for our economy”.