Cotton growers in the country are likely to suffer Rs 225 billion loss till March 15 this year due to low cotton prices in domestic market. Cotton is being sold at Rs 5,500 per maund against last year's price of Rs 7,000, which has created uncertainty in the market.
In wake of the falling cotton prices during current year, the growers are mulling to switch over to other crops in next year, which will affect the commodity's production, a source said. The growers are still holding almost five lakh cotton bales, while total stock available with the ginners is about one million cotton bales.
"The growers have so far faced a loss of Rs 200 billion due to low prices of the commodity in the domestic market and non-intervention of Trading Corporation of Pakistan (TCP) for stabilisation of the prices. Till March 15 the growers are likely to suffer a total Rs 225 billion loss," the source added.
He said cotton seed is being sold at Rs 2,200 per 40 kg in Punjab and at Rs 1400-1,800 per 40 kg in Sindh. He said that the target of cotton crop for 2011-12 was 15 million bales but the flooding and heavy rains in cotton cultivating areas especially in Sindh have caused a loss 2 million bales.
He further said that the situation would have been better had the government directed the Trading Corporation Pakistan (TCP) to intervene in the market to stabilise the falling prices. According to the recent report of Pakistan Cotton Ginners' Association, the arrival of cotton bales in the ginning factories is 14 million bales while it was 11.3 million bales during the corresponding period last year, showing an increase of 24 percent. In the ginning factories of Punjab, 11.4 million bales of cotton have arrived compared to 7.6 million bales in corresponding period of last year. Similarly, in Sindh 2.6 million bales of cotton have arrived against last years' 3.7 million bales.
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