Cotton arrival declines
December 19, 2012
Cotton arrival declined by some 2 percent during the current crop season. Overall domestic arrival of seed cotton (phutti) up to December 15, 2012 stood at 10,768,861 bales as compared to 11,036,018 bales in the same period of last year, depicting a decline of 267,157 bales.
According to the statistics issued by Pakistan Cotton Ginners Association (PCGA) during the period under review total export of cotton is 171,946 bales whereas 8,853,314 bales have been purchased by textile mills and 1,743,601 bales are lying pending for sale in ginning factories. Some 784 ginning factories in Punjab and 178 in Sindh are operational during the current cotton crop season.
Further analysis revealed that up to December 15, 2012, some 7,645,861 bales equivalent seed cotton were received in ginning factories of Punjab that was some 13 percent or 1,110,364 bales less than previous year. Whereas 3,123,000 bales equivalent seed cotton was received in ginning factories of Sindh, which is 37 percent or 843,207 bales higher than previous year.
“Not only in Pakistan, cotton production in India is less than previous year,” said Ihsan-ul-Haq, a cotton trader. Cotton Corporation of India (CCI) said the total domestic production of seed cotton in India is 6,186,000 bales up to December 16, 2012, some 10.47 percent or 717,000 bales less than the corresponding period of last year. According to CCI, major shortage in cotton production was observed in Indian states of Gujarat, Maharashtra and Madhya Parades with 30 percent shortfall in production.
Haq said due to shortfall in cotton production, rising export of cotton yarn and gray cloth and due to rising dollar versus the rupee resulted in swift rise in cotton and phutti prices during last week while cotton lint price rose by Rs 300 to Rs 6,300 per maund. In addition, an increase of Rs 150 per 40-kg has been registered in phutti price which reached Rs 2,925.