2.5 million cotton bales likely to be imported: rains play havoc with quality

The country is likely to face a shortfall of around 2.5 million bales of cotton, as the recent rains have badly damaged the quality of cotton in Sindh and Punjab, said brokers in the Karachi Cotton Association (KCA) here on Tuesday.
This will result in depending on imported cotton. Pakistan, they estimated, may have to import cotton of 2.5 million bales to meet the demand of local mills, they said.
"Although more than 70 percent of phutti had arrived in the ginning factories till November 30, still 30 percent phutti has been lying in the fields. Widespread rains in Sindh have badly hit the cotton fields in Mipurkhas, Tando Adam, Sanghar, Shahdadpur, and Khairpur districts. In Punjab, all districts, including Multan and Rahim Yar Khan have been affected by rains", a broker told Business Recorder.
He said the cotton crop had matured and was in the last phase of picking when sudden winter rains hit the cotton growing areas damaging a sizeable crop. This situation resulted in an increase in the cotton price by Rs 50 on Tuesday to Rs 2,600 per maund from Rs 2,550 per maund, he said.
The broker said the country depending on imported cotton would be widened by 0.4 million bales in the wake of rising concern by the stakeholders on the crop quality issue. It has also pushed quality premium and if rains continued for a couple of days more the quality, it is feared, would be further damaged and the premium would go up to Rs 50 per maund.
The current year, the cotton crop would be approximately 12.4 million bales as against the demand 14.6 million bales, the brokers said. Every year Pakistan exports the cotton approximately more than 0.4 million bales so this year Pakistan is already facing a shortage of 2.2 million bales, after the rains and damaging the crop this shortfall increased by 0.3 million bales.
So the country is likely to face a shortfall of 2.5 million bales of cotton this season, which would be imported from different countries to meet the shortfall, he added.
"We are spending Rs 1 billion for the import 0.1 million bales and in this season Pakistan would spend Rs 25 billion on the import of 2.5 million bales", said another broker. Till November 30, total 8.9 million bales have been arrived in the ginning factories and 6.5 million bales sold to the textile mills and only one million bales have been in the stock remaining for sale.
On Tuesday, millers offered Rs 50 premium per maund for cotton at the Karachi Cotton Exchange, which was packed in the ginning factories before rains and they are avoiding purchasing the unpacked cotton crop or phutti.
He said that after the rains the colour of cotton has been changed and its white colour has turned into off-white. Contamination also have increased in the cotton and around 0.4 million phutti would be scraped for the growers.
In the current season from May 2006 to date, Pakistan has made 1.4 million bales of import orders to meet shortfall as against last season since August 5, 2005 to April 6, 2006 Pakistan imported 1.691 million bales, source added.