Cotton prices in Pakistan in May 2021
KARACHI: Cotton and cottonseed prices have risen sharply in Pakistan’s cotton markets following the release of reports by the United States Department of Agriculture on a sharp decline in cotton production and an increase in consumption this year. The price of cotton has risen by Rs 300 to Rs 10,000 per quintal, reaching a ten-year high once again hit a ten-year high.
The ECC has approved the abolition of regulatory duty on cotton, which will facilitate exports of the garment sector. The price of cotton in Pakistan has reached Rs 11,500 per quintal, which is the highest price in 11 years.
During Cotton Air 21-2020, the total production of cotton in Pakistan is likely to be 7.5 million bales (160 kg) more than the initial estimates, which is a cause for concern in the entire cotton sector. The consumption of cotton in Pakistan is estimated at 13.6 million bales, which will force Pakistani textile mills to import 5.2 million bales this year. Local textile mills have so far entered into import agreements for more than 1.5 million bales of cotton to fulfill their export orders.
Although there has been a record decline in cotton production in Pakistan this year, experts and those associated with the sector have long pointed out that the country is witnessing a steady decline in the cultivation of this crop. According to Amir Hayat Bhandara, the record decline in cotton production this year was not sudden but was steadily declining. The decreased area under cotton cultivation, climate change and poor batches in the last few years have severely affected the overall cotton crop production and today the situation has reached a point where Pakistan has a record for textile production. Cotton has to be imported from abroad.
With Pakistani textile mills receiving the highest export orders in history, record consumption of cotton is expected this year, so the federal and provincial governments should ban sugarcane cultivation in the cotton zones of Punjab and Sindh. Pakistan does not have to import billions of dollars worth of cotton and edible oil every year. Last year, the cotton crop was severely damaged by a locust heart attack.
The price of cotton in Pakistan has increased by Rs. 200 per quintal. Cotton prices in the United States have also reached new highs in the last three years. Cotton sowing has started in the coastal cities of Sindh. The federation has decided to give a subsidy of Rs 1,200 per acre to the farmers for the eradication of whitefly.
|Name of City||Price|
|Rahim Yar Khan||3,900-4,550|
Heavy rains in Sindh this year and attacks by whiteflies and pink cinnabar on the cotton crop in Punjab have led to fears of a record decline in Pakistan’s gross domestic product.
Pakistan is the fourth-largest producer of cotton in the world. Punjab is of special importance in this regard as about 80% of the total production is produced in Punjab. This year, the cotton crop is being cultivated on about 4 million acres, which is expected to yield an average of more than 17 million per acre. The Punjab government is providing Rs. 1,000 per bag of approved varieties of seeds and whitefly protection to cotton growers for an area of more than 200,000 acres at a subsidy of Rs. 4.4 billion. The approved BT varieties of cotton are IUB 13, MNH 886, BS 15, Niab 878, and FH 142 while other approved varieties for specific districts should be selected in consultation with local agronomists.