Cotton market: PCGA report shows decline in cotton arrival due to last year’s floods

LAHORE: The local cotton market on Tuesday remained bullish and the trading volume remained very low.

Cotton Analyst Naseem Usman told Business Recorder that the rate of cotton in Sindh is in between Rs 15,000 to Rs 16,500 per maund. The rate of cotton in Punjab is in between Rs 16,000 to Rs 18,500 per maund. The rate of Phutti in Sindh is between Rs 5,000 to Rs 8,000 per 40 kg. The rate of Phutti in Punjab is in between Rs 6,000 to Rs 9,000 per 40 kg.

Approximately, 400 bales of Tando Adam were sold at Rs 16,500 per maund, 200 bales of Khan Pur were sold at Rs 1900 (condition) per maund and 200 bales of Yazman Mandi were sold at Rs 15,900 per maund.

Cotton arrival in Pakistan decreased 37 percent 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 percent.

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.

“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 percent. However, on a monthly basis, cotton arrival recorded an increase of 10% as compared to 2.515 million bales arrived on December 1.

The Spot Rate remained unchanged at Rs 17,000 per maund. Polyester Fiber was available at Rs 285 per kg.

Copyright Business Recorder, 2023