KARACHI: The country has so far produced 9.748m bales this season, a decline of 34 per cent compared to 14.785m bales during the same period a year earlier, the Pakistan Cotton Ginners’ Association (PCGA) said in its fortnightly report issued on Friday.
Karachi Cotton Association Chairman Khawaja Tahir Mahmood said the country would suffer a loss of Rs111.755bn ($1.2bn) because of the shortfall.
He said the average price of cotton for current season has been Rs5,200 per maund (37.5kgs), or Rs138.7 per kilogram. Now considering a bale at 160kg, 5.037m bales mean 805,964,320kg, hence a loss of around Rs112bn.
Punjab’s output has plunged 45pc to 5.982m bales this season compared to 10.814m bales a year ago.
By comparison, Sindh suffered a relatively shorter fall of 5pc and produced 3.766m bales. All Pakistan Textile Mills Association Chairman Tariq Saud said that by end-February his members imported 305,000 tonnes of cotton valuing $520m (Rs52.7bn). The average per-kg import price has been $1.645, he said.
The PCGA’s report said spinners have so far purchased 8.745m bales as against 13.572m bales a year ago, while exporters lifted around 361,241 bales compared to 473,337 bales.
Phutti arrivals during the outgoing fortnight (March 1 to 15) fell to 20,747 bales compared to 78,942 bales in the same period of last season.
Ginners hold 641,763 bales at present as against 644,986 bales a year earlier. Only 31 ginneries are operating in Punjab and six in Sindh compared to 98 and 14 last season.