ISLAMABAD: In Pakistan Cotton price witness record increase of Rs 1500 per maund by reaching at Rs 19500 per maund. This is an extraordinary jump benefit the agriculture sector cultivators.
Currently, cotton prices in future contracts are quoted around Rs 20,000 per maund, this is just because the Cotton output in country remained below the expectations. It was expected to see a bumper crop this year.
Cotton output has currently reach at 8.171 million bales for which around 214 ginning mills are in operating phase as yet. For the time being the textile sector companies have bought 7.314 million bales from the ginners.
Pakistan’s cotton output has shown an extraordinary surged by 77 percent year-on-year (YoY), according to the latest fortnightly data released by the Pakistan Cotton Ginner’s Association (PCGA). Cotton output last year was around 4.9 million bales.
Until December 31, 2023, 8.17 million bales of cotton were bought by cotton ginners, still more than 3.5 million bales over the 4.6 million bales registered in the same period last year. But ginners estimate only 0.5 million more bales to be supplied over the rest of the Fiscal Year 2023-24.
Output would remain meaningfully lower by roughly 4.3 million bales for Fiscal Year 2023-24, with a total output of 8.5 million bales estimated against the earlier and much larger target of 12.8 million bales.
Province-wise summary indicates cotton arrivals in Punjab were 4.79 million bales, up 48 percent YoY than supply but still 4 million bales below the earlier benchmark.
Sindh reported 4.49 million bales, a record 121 percent YoY increase over last year. Textile mills bought 7.3 million bales of the total yield. Meanwhile, ginners have 0.565 million bales residual while 0.175 million bales were shipped to countries including Indonesia and Vietnam.
Cotton is the major cash crop of Pakistan, with the support of high-end textile and garments industry which buys most of its inputs domestically.
