Pakistan is likely to import about 3 million bales of cotton worth $1.2 billion to meet the requirements of local industry, as production target of the crop will not be met, official sources revealed. Currently cotton prices in Pakistan are the lowest as compared to other countries of the region. Cotton price in Pakistan is 1.79 dollar per kg (Rs 190.07) against 3.38 dollar per kg (Rs 358.61) in China and 2.19 dollar per kg (Rs 232.35) in India, industry sources revealed to Business Recorder.
The Cotton Crop Assessment Committee (CCAC) has projected cotton production target for the current season (2013-14) at 11.95 million bales against the initial target of 13.22 million bales, while the local industry requirement is about 13 million bales. Sources further said that there is no restriction on import and export of cotton. Pakistan exports about 2.5-3 million bales every year and to date 1.5 million bales of cotton have so far been exported. The country is likely to produce 11.95 million bales, but due to shortage of fine quality and long staple cotton, Pakistan has to import it from India and China.
Textile industry stakeholders, while talking to Business Recorder, expressed serious concerns over the expected decline in cotton production, saying that the industry is likely to import about 3 million bales to meet the domestic requirements for the current year, which would result in huge burden on the industry. The decline in cotton production would not only result in price escalation and shortage of raw material, but would also result in negatively affecting value-added textile export, they maintained, adding that the expected decline in commodity production would also deprive the country of valuable foreign exchange earnings.
According to the officials, during 2013-14, cotton crop was sown on an area of 5.4 million acres in Punjab against the target of 6 million acres, showing 9% decrease in target and 5.2% decrease in the last year's sown area. Rain and floods further damaged 0.12 million acres; said official, adding that decrease in sowing was mainly attributed to low price of seed cotton during the last two-three years and farmers' preference to sow maize, sugarcane and rice crops due to monetary advantages over cotton. Moreover, rains have delayed harvesting of potato in Upper Punjab, which has also contributed to late / less sowing of cotton crop in those areas.
Cotton on about 1.41 million acres was sown in Sindh against 1.6 million acres last year depicting 13% decrease, besides early sowing in Lower Sindh was attacked by Pink bollworm and Mealy bug and 5-10% of Kacha area was damaged by floods in Upper Sindh. According to the CCAC estimates, Punjab would produce 8.7 million bales against the initial projection of 9.6 million, Sindh 3.15 million bales against 3.5 million bales, Balochistan 0.108 against 0.18 million bales and Khyber Pakhtunkhwa 0.00043 million bales.
Source:- brecorder.com
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