Weekly Cotton Review: Production reaches 3.208m bales

Business Recorder reported that cotton output in the country now stands at 3.208 million bales, with Sindh supplying 1.993 million and Punjab 1.215 million. Domestic prices slid sharply as New York futures weakened, and lint fell by Rs1,000 to Rs1,500 per maund.

The spot rate dropped by Rs700 to Rs17,800 per maund, although trading picked up over the period. Market sources said phutti supply has fallen significantly, while pest attacks such as pink bollworm and whitefly, linked to scant rainfall, threaten both yield and quality. Large textile firms are reportedly planning bigger purchases from abroad to capitalise on the overseas price slump.

Gohar Ejaz of APTMA said textile shipments abroad rose from around USD10 billion in 2010 to about USD19 billion, while other sectors' exports failed to keep up. Commerce Minister Jam Kamal Khan argued that phutti should receive a minimum support price if wheat gets one. Malik Talat Sohail said the sector will lobby again to scrap the 18 per cent levy on cottonseed cake and seed, which returned in a later budget.