With a substantial growth of over 27 percent, raw cotton export has crossed one million bales mark during the current fiscal year mainly due to cheap price and bumper crop in the country. Exporters told Business Recorder on Wednesday that raw cotton export has registered a healthy growth of 27.68 percent during the first eight months of current fiscal year 2011-12 (FY12) followed by high demand on the international front.
The country exported raw cotton worth $294 million during July-February of current fiscal year compared to $230 million in corresponding period of last fiscal year, depicting an increase of $64 million. In terms of volume, Pakistan exported some 1.02 million bales during the first eight months of current fiscal year compared to 0.61 million bales in the same period of last fiscal year.
Month-on-month basis, export of raw cotton posted a surge of 83 percent to $85.36 million in February 2012 when compared with February 2011, in which $46.63 million worth raw cotton was exported. "Pakistan's raw cotton is much cheaper than the world market, which forced the international buyers to procure our raw cotton, resulting in over one million bales export during the current season," said Ghulam Rabbani a leading cotton trader.
After touching all-time high level during the last fiscal year, raw cotton prices stood at Rs 5400-5450 per maund in the domestic market, he said and added that current cotton prices are some Rs 300-500 per maund less than world market, where cotton prices stand at $1.05 per pound.
"We are still receiving queries and orders from foreign buyers as Pakistan has a bumper crop this year and achieved 14.6 million bales cotton crop, which is a record," he added. Besides current exports, an additional 300,000 to 400,000 bales contracts have been finalised and these will be exported in the remaining period of current fiscal year, he informed.
He said Pakistan is the fourth largest cotton producer in the world, however it is unable to produce very high quality cotton. "Currently, Pakistani exporters is exporting high quality cotton at 88-90 cents, while normal quality cotton at 60-70 cents per pound," Rabbani said.
He said after China, with import of 0.3 million bales, India has become second largest importer of Pakistani cotton. In addition, Bangladesh, Sri Lanka and some other neighbouring countries are major buyers of Pakistani cotton. During last fiscal year, Pakistani cotton exporters enjoyed a honeymoon period as prices were hitting all-time high level while the world market was witnessing a shortfall. During the last fiscal year ie 2010-11, raw cotton export registered a healthy growth of 84 percent to $360 million from $195.5 million in fiscal year 2009-10.